| Can trash companies become even more efficient in | | | | not immune but should be able to ride out any |
| the future to save costs and increase profits? It | | | | economic storm until things return in any economic |
| might be difficult as they are already robotic, have | | | | recession. They also have advantages of getting 1.3 |
| GPS systems and routing software. Yes it is true | | | | Billion Chinese hooked on caffeine, like the tobacco |
| many new innovations such as the Pacific Norwest | | | | industry did with cigarettes. |
| Laboratories and the DOE have discovered ways to | | | | Trash companies are hurt in that their best |
| increase productivity and traffic flow by | | | | customers are those, which are business properties |
| understanding issues and controlling sequential and | | | | such as the property management companies looking |
| numerical divisions between peak and capacity. And | | | | to stay solid in harsh times even though it will never |
| yes if that industry would stay with it they could | | | | happen. Those companies like Trammel Crow, Carr |
| increase their efficiency and of course due to the | | | | America, and etc. with a large amount of investment |
| great rewards of the past they did. | | | | capital tied to their percentage of cash flow from |
| Such as the greatest innovation in trash collection by | | | | under performing business and retail income |
| truck in the last three decades was the custom | | | | properties. If you look at the largest insurance |
| trashcans coupled with the truck mounted hydraulic | | | | companies you will see their dissolving positions of |
| lifts while the driver can stay within vehicle and | | | | the largest REITs in Q3 and Q4 of 2003 with a 15% |
| collect more trash per hour. Big difference and made | | | | drop in REITs in first quarter of 2004. With this |
| a world of exploits for shareholders equity, quarterly | | | | happening you can understand that they do not feel |
| profits and retained earning to further expand the | | | | comfortable in non-performing current investments. |
| intense consolidation years of that industry. So where | | | | Some large property owners will use this as an |
| are we today? In 2001 consumer spending had | | | | opportunity to buy up properties on the cheap or in |
| slowed. | | | | foreclosure, bankruptcy or like the S and L days |
| We know this due to watching the consumers and | | | | from the government. Meanwhile empty buildings use |
| their choices on the menu of our detail shops at the | | | | less trash services and less property management |
| Detail Guys , A company I run. Because people love | | | | services. |
| their cars and continue to spend when they forgo | | | | When you take away the highest yielding market mix |
| other things such as Fast Food QSRs and other | | | | of a trash refuse company, where can they make it |
| types of businesses, we know if we are hit by | | | | up? They cannot without diversifying into other |
| incremental consumer slow downs things are getting | | | | services. Some smaller ones have such as into |
| tighter and can easily predict severe recessions some | | | | recycling which has done well and tends to do well in |
| 6 months out. First hit is higher priced items, last hit is | | | | recessions. However it costs more many times |
| lower prices consumables and favorites of people | | | | recycle than to produce new. All these things should |
| including the vices industries which I will have to at | | | | be considered if you are looking into a long-term buy |
| this point add Caffeine. Yes Starbucks. Starbucks is | | | | and hold position in garbage stocks. Think on it. |