AW: I Love it When a Plan Comes Together

Barely two months ago I wrote a positive column about Allied Waste (AW), saying:

“After underperforming its peers Waste Management (WMI) and Republic Services (RSG) for the last few months, Allied Waste (AW) looks poised for a rebound. On the basis of my valuation, I believe the shares are worth $14 to $14.50, or about 25 to 30% higher than the current price.”

Republic’s $15 + bid for Allied late Friday got them there pretty quickly. The shares rose 31.9% since the time I wrote the article, compared to a decline of 0.9% in the S&P 500.

When it comes to acquisition offers - particularly those based on a stock purchase rather than cash - I have a take the money and run mentality.

Case closed.

Disclosure: At time of publication, William Trent has no financial position in the companies mentioned in this article.