Our other focus this week is on Waste and Environmental Services. One analyst we spoke to this week told us about one of the companies he covers in this space: Darling International (DAR):
“Darling is the largest renderer of animals fats and yellow grease.” The company, over 100 years old, has been listed on AMEX for 50 of those years. According to this analyst, “Darling is immune to the fuel versus food debate due to the fact that they are servicing a product that is the cheapest commodity feedstock.” While other feedstock- corn, soybeans and soymeal- are escalating in price, Darling’s product remains a cheap alternative.
Additionally, Darling has a competitive advantage due to the fact that their product base is waste, which continues to benefit from a very favorable operating environment. The demand from around the world, especially Europe and South America, combined with rising levels of biofuel usage, have rocketed prices to never-before-seen levels.”Given the volume of sizable amounts of feedstock, Darling remains well-positioned to capitalize on market trends.”
For the full roundtable on Solid Waste & Environmental Services, including an overview of the current market in this space and an outlook for the rest of 2008, click here.
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