Date: May 21, 2012
Source: News Room
Billionaire Bill Gates is continuing to boost his ownership stake in Republic Services which now stands at close to 20 percent of the company. His investment company Cascade Investment, LLC has acquired 3.8 million shares just since May 15 representing an investment of $100 million. His latest spree seems to be taking advantage of a stock price that had dropped by as much as 13 percent following the company's announcement of disappointing first quarter earnings on April 26. From April 30 to May 2, Cascade acquired an additional 3.7 million shares for $101.4 million. That followed a similar investment last December in which he picked up 4 million shares for about $108 million.
While many investors may be impatient for Republic to improve its volumes, Gates appears to beleive in the longer term prospects of the company which has generally enjoyed relative stability, and strong cash flow. He may see its existing portfolio of landfills as being undervalued by the investment community who may be overlooking the future value of a diminishing resource as it becomes increasingly difficult to site and build new landfills.
See also: "Bill Gates Seizes Opportunity to Up His Stake in Republic Services," (www.wasteinfo.com/news/wbj20120509D.htm).
See also: "Bill Gates Buys More Stock in Republic Services," (www.wasteinfo.com/news/wbj20111213A.htm).