This is a mobile optimized page that loads fast, if you want to load the real page, click this text.

CWY - Cleanaway Waste Management

Jump to new
Some thoughts on the industry in general



- the resource garbage will only become more, so you can not not have someone to take care of it
- return of export of garbage is unlikely (China doesn't change policies willy-nilly, the contamination limit for them to accept it is miles away from what can be achieved and few countries lack garbage or have the recycling infrastructure).

From a guardian article last year: "Indonesia, the Philippines and Malaysia have each turned back shipments..."

- it is an industry of few players that the government can not make unprofitable for their own good as people would get grumpy fast if garbage piles up (the consequences of the SKM bankruptcy was a lesson hopefully). So landfill levies may go up but I don't see it hurting the industry.
- there is a huge room to grow in terms of the value chain when you compare Australia to Europe (landfill gas, waste to energy, better sorting) which makes margins grow and politicians look good to the voters by keeping their promises of investing into recycling
- On a side note Cleanaway took over 5 recycling sites from SKM's bankruptcy most likely for a pretty good price

https://www.insidewaste.com.au/inde...w-of-the-state-of-waste-in-australia-in-2019/

https://www.theguardian.com/environ...ufacturing-after-indonesia-sends-rubbish-back
 
@sptrawler CWY caught my eye today and it has been recovering very nicely.

Not sure if you rode her all the way down but you would have to be happy now things appear to be back on track.
 
good numbers ... up 8%


• NPAT of $152.9 million, up 8.7% (Statutory NPAT of $112.6 million, down 6.6%)
• EBIT of $251.9 million, up 4.6% with 60 bps margin expansion to record 12.0%
• EBITDA of $473.0 million, up 2.5% with 60 bps margin expansion to record 22.5%
• Free cash flow of $230.1 million, up 11.5%
• Footprint 2025 Progress:
− Integration of Toxfree and SKM businesses completed
− Committed to proceeding with a PET Plastic Pelletising facility
− Advancing Energy-from-Waste project in Sydney, with EIS submitted
• Major elements of the legacy landfill rectification complete
• Defensive characteristics of revenue streams demonstrated again during Covid-19

 
Yes a good recession proof business model, someone has to pick up the rubbish.
Also with more onerous traffic management required by councils, to pick up the rubbish, CWY is a ready made answer to a growing problem.
Happy holder.
 
This could turn out to be a big bonus for CWY, if these laws are passed companies like CWY, are the ready made answer to the problem.

https://www.watoday.com.au/politics...waste-management-reforms-20200826-p55ph6.html
From the article:
Jail time and big fines for recycling companies that breach export bans will be on the cards under laws to be proposed by the Morrison government to Parliament on Thursday.

The Recycling and Waste Reduction Bill follows on from Prime Minister Scott Morrison's promise to ban export of certain waste materials and products from Australia - which came in response to China's import ban on contaminated waste.
The bill also proposes a "product stewardship" regime making manufacturers and distributors responsible for the waste created by their products and packaging.

Environment Minister Sussan Ley said the bill would generate jobs by making companies responsible for managing their waste.

I do hold
 
Misconduct by the CEO is never a good look. Down 14% at its low today and finished down 7%.

I hold so hoping this is sorted out and they move on.

 
I took one look at the guy's picture and went "slavedriving asshole" and wouldn't you know it:



"Cleanaway Waste Management (ASX: CWY) has today issued a response to allegations published in the Australian Financial Review that CEO Vik Bansal (pictured) bullied and intimidated employees.

Shortly after issuing its response the Melbourne-based company also revealed chief financial officer (CFO) Brendan Gill had resigned and would retire.

As reported today, the AFR reports Bansal was investigated in June over accusations he led a "culture of bullying and harassment", with sources claiming he would swear at staff and exclude women from promotion opportunities.

Further, the publication says Bansal "created an environment where senior managers couldn't escalate bad news for fear of reprisal", and asked employees to work from the Melbourne headquarters against Victoria's strict COVID-19 guidelines.

Sources who spoke to the AFR also alleged the company's board, chaired by Mark Chellew, failed to probe Bansal's behaviour for a number of years".




He sounds like a right piece of work.
 
I have, on rare occasions, been to the tip. One has to compare like to like. Many employees at the tip down past the meatworks here in Townsville have a robust interpersonal style. I believe Bansal should be given another chance to bollock a new crew of underlings.

gg
 
CWY was having a good couple of months but has stalled over the last couple of weeks.

Holding and in the RED but will be watching closely over the next week.

 
Trav. said:
CWY was having a good couple of months but has stalled over the last couple of weeks.

Holding and in the RED but will be watching closely over the next week.

View attachment 116688
Click to expand...
Fortunately I bought in earler, but have no doubt waste management is the next big issue and CWY are well placed.
As long as they are well run.
 

Sources said the talks were advanced and were centred around a deal worth more than $2 billion. Cleanaway has Macquarie Capital’s bankers helping with the due diligence and negotiations.

It would be a big bite for Cleanaway and could increase the group’s revenue and earnings by as much as 50 per cent.

Cleanaway’s interest comes as rival waste management giant Veolia tries to acquire all of Suez, including farflung offshoots like Suez Australia. It would be tricky for Veolia to take all of the local Suez biz, and definitely the ACCC will be involved.
 
The purchase of Suez fell through, as Veolia came to and agreement with Suez, however it looks as though Cleanaway gets Suez's Sydney waste transfer stations and landfill sites.

Cleanaway collects Suez assets on the cheap

Cleanaway is snaring the two landfill sites and five waste transfer stations in Sydney without having to beat off others.
www.afr.com

Also Cleanaway report the appointment of a new CEO, ex Origin Energy, Mark Shubert.


I do hold.
 
Liking the slow upward movement in CWY. The volatility makes it a tricky one to time and it's why I buy the dips in these types of charts (green buy zone). However, now, a possible BO-NH is forming. CWY is at a new ATH. I like the two recent large bullish bars in this current trading range.

 
i held some TPI corporate debt several years back and that ended nicely , but could never get the numbers to look attractive to me as either TPI or CWY shares

that doesn't mean never ( buying the shares ) but unlikely in 2021 just the same

can be a savage brutal industry , you probably need to factor in higher risks

( as some posts above indicate not all players are gentlemen or ladies )

DYOR
 
You must log in or register to reply here.

Similar threads

TME - Tungsten Metals Group
Replies
1
Views
937
Dona Ferentes
M8S - M8 Sustainable
Replies
1
Views
781
Dona Ferentes
DGL - DGL Group
Replies
7
Views
2K
Als2own
IPG - IPD Group
2 3
Replies
49
Views
10K
finicky
MAM - Microequities Asset Management Group
Replies
0
Views
628
Dona Ferentes
Menu
Log in
Register
Cookies are required to use this site. You must accept them to continue using the site. Learn more...