Market Insight: Clean Harbors Navigating in Hot Sector
May 1, 2008
Clean Harbors, Incorporated (CLHB), through its subsidiaries, is a provider of environmental services and an operator of non-nuclear hazardous waste treatment facilities in North America. The company performs environmental services for over 45,000 customers, including more than 325 Fortune 500 companies, in the United States, Canada, Puerto Rico and Mexico. The company was founded in 1980 and is based in Norwell, Massachusetts.
Clean Harbors performs environmental services through a network of more than 100 service locations, and operates six incineration facilities, nine commercial landfills, six wastewater treatment operations, and 20 transportation, storage and disposal facilities, as well as six polychlorinated biphenyls management facilities, and oil and used oil products recycling facilities. The company operates in two segments: Technical Services and Site Services. In March 2008, the company acquired Universal Environmental, Incorporated an environmental services company.
The stock has stellar fundamentals with solid earnings growth and terrific return on equity. Clean Harbors’ latest quarterly earnings showed earnings per share coming in at 81 cents per share representing a 45 percent increase over the same quarter in the previous year.
Technically the stock has a good profile projecting a possible move up to the $75 per share area by the July timeframe. Clean Harbors has a very tradable options market with tight bid to ask spreads. They do not have LEAPS, but the options currently extend out to October of 2008, allowing the trader more than enough time to play this opportunity.
Figure 1: Elliott Wave-4 Buy Pattern for Clean Harbors
(Source: Profit Source)
Happy Trading.
Jeff Neal
Senior Writer, Options Strategist & Profit Strategies Radio Show Market Correspondent
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