Topic: How To Invest

Dear Pat: I am thinking of buying shares of IESI-BFC. Do you think that the stock represents a near-utility like investment? Best regards.

Article Excerpt

IESC-BFC, $14.49, symbol BIN on Toronto (Shares outstanding: 82.3 million; Market cap: $1.2 billion), changed its name from BFI Canada, effective June 1, 2009. That’s when BFI Canada amalgamated with its wholly owned subsidiary, IESI-BFC Ltd. The company will continue to operate as BFI Canada in Canada, and as IESI in the U.S. IESI-BFC is one of North America’s largest solid-waste management companies. However, its business does not include any management, collection or disposal of hazardous or liquid waste. Instead, IESC-BFC collects and disposes of waste from 1.8 million commercial, industrial, municipal and residential customers. It makes 68% of its revenue in Canada. The remaining 32% comes from the U.S. In the U.S., IESI operates 17 landfills, 31 transfer-collection stations, 10 material-recovery plants and one transportation operation. These are spread across 10 states. In Canada, the fund operates four landfills, five transfer-collection stations, seven material-recovery facilities and one landfill-gas-to-energy facility. These are located in B.C., Alberta, Manitoba, Ontario and Quebec. In the three months…