A Slick Move by Clean Harbors

 | Oct 29, 2012 | 7:22 PM EDT
  • Comment
  • Print Print
  • Print
Stock quotes in this article:


It's not all hurricane all the time. I'm looking at this Clean Harbors (CLH) deal to buy Safety-Kleen, and I am convinced this is a good one for Clean Harbor. It's the same reason so many takeouts are good for the acquirers: They add secular growth to what are viewed as cyclical businesses.

Until Clean Harbors bought Safety-Kleen for $1.25 billion Monday, people had been leaving the stock. They had come to believe it wasn't leveraged to clean up and to waste disposal, and that it had instead become a rig-count play, since a great deal of business had been developed in the oil patch.

But this deal augments Clean Harbors' less-than-cyclical businesses and gives the company a chance to expand in a world where regulation on waste disposal is poised to become tighter and tighter.

I think that, when the market opens, the bears on the stock are going to have to take a hard look at their negative thesis and change their minds. When you have a new-customer list of 200,000 that's not in the oil patch, and when you are refining waste oil into product, you have a much better business mix.

Safety-Kleen was supposed to come public this August, but it didn't get through the chute. That's looking like good news now for both companies.

Columnist Conversations

View Chart »  View in New Window »
we will add this here to cheaply protect our downside a bit BOUGHT SPY SEP 244 PUT AT 2.70 ...



News Breaks

Powered by


Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.