"Executives from Waste Management (NYSE: WMI), a stock on our recommended list, presented the company's case to Wall Street at a conference sponsored by J.P. Morgan," says Bill Martin.

In his BullMarket.com, which offers in-depth trading and investing research, he adds, "We reviewed the presentation from CEO David Steiner and CFO Robert Simpson and found the company's story to be quite compelling for long-term investors."

"Steiner began by outlining some of the basic drivers of the company's business. Waste Management is the nation's largest trash hauler, and he pointed out that it along with its two-largest competitors own two-thirds of the nation's landfill space.

"The percentage, he said, will only increase over time as municipalities, which for the most part own the remaining third, aren't investing in new capacity the way private industry is.

"Since the biggest cost component is the tipping fees charged by landfills -- it amounts to 40% of total costs -- the more landfill space the company operates, the more it is able to capture those fees from other haulers.

"Landfills also form the basis for the company's initiatives in transforming the methane gas that builds up naturally in landfills into fuel for its trucks. The company plans to invest $70 million this year in efforts to convert landfill gas to fuel.

"Landfill gas has been put to beneficial use at 108 of the company's landfills, with seven projects brought online during 2007 and plans to break ground on 10 more in 2008. The projects are accretive to earnings and operating margins, Steiner said, though not a large part of the business.

"Waste Management is also starting to look at using its growing expertise in this area to develop landfill gas-to-energy products for third parties.

"Earlier in the year, investors were concerned that rising fuel costs and a slowing economy would impact Waste Management's business, but Steiner argued that for the most part, its businesses are recession resistant.

"He pointed out that while rising fuel costs are an issue, Waste Management has also rewritten virtually all of its contracts to ensure that it can recoup rising fuel costs through surcharges. He added that in some respects a recessionary environment can be more profitable.

"For the last two years, Waste Management has been pushing up prices and weeding out unprofitable accounts. Since the program began, the company has generally been able to raise prices between 3% and 4% each quarter since the fourth quarter of 2005. At the same time, it has been trimming expenses.

"Little noticed in the company's larger story is its Wheelabrator division. Through that division, Waste Management is the second-largest player in the trash-to-energy market. The desire to go green is also pushing several communities to consider waste-to-energy as a new disposal and energy generation alternative.

"The company's presentation offers some color and insight into a business that is gaining the attention of investors.

"Management noted that results can sometimes be lumpy because of when certain costs and revenues flow through, but when it adjusts operating results for one-time items, the company has shown consistent growth since the beginning of 2004.

"It was at that time management took a hard look at its cost and pricing structure and began to rationalize both. In our view, Waste Management is not a rapid growth story, but it is an excellent core holding for any portfolio. We rate the stock a 'Buy' with a target of $45."