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I remember when my parents first let me start driving, I had a ’69 Olds Delta 88. This car had a 455 engine and could really scream. I burnt rubber on miles of highway. Back then I used to think it was fun to change the oil of my car. I’d take the used motor oil and dump it on other people’s lawns. I mean what else was I supposed to do with it? I thought I was pretty clever until all these babies with big heads were being born in my neighborhood. Then I thought maybe I should put the oil someplace else.
When I drink too much beer, I also leak oil, but that’s a more natural kind of oil that does not need remediation. I drank so much on New Year’s Eve that I pissed in my refrigerator.
Today I bought BEL (Bennett Environmental) at 21.12. I will sell it in 4 to 6 weeks at 24.38. Here’s why I like BEL:
What does Bennett do? Bennett is like earthworms. They eat bad dirt and turn it into good soil. Actually they heat up the dirt to a bazillion degrees to destroy off all the bad stuff in it. High temperature thermal processing is a complete, permanent and safe solution for the treatment of contaminated soils and is recognized as the Best Demonstrated Available Technology (BDAT) by both government agencies and companies alike. Bennett has developed the Mark IV Thermal Oxidizer which permanently treats soil contaminated with chlorinated hydrocarbons with 99.9999% efficiency. If they made a better one, it would be the Mach V and Speed Racer could drive it with Spritel and Chim Chim in the trunk.
Yup, we’re talking waste management, and it ain’t the Soprano’s and Ralphie’s head in a bowling bag at the Bada – Bing club. This is north of the border waste management, where consumption of Molson Golden rules the day.
BEL is up over 210% in the last 52 weeks but is still relatively cheap with a PE of 25.8. Earnings have a really good shot of growing substantially. Remediation of contaminated sites is a growing environmental issue. The worldwide increase of environmental awareness has resulted in new laws and regulations governing all aspects of waste storage, treatment, and disposal. Recent restrictions on the disposal of untreated contaminated soil into landfills have lead to significant growth in the soil treatment market. With a strengthening economy, companies will be more willing to take care of these HUGE problems.
BEL’s soil treatment facility is permitted to treat soil contaminated with dioxins, furans, PCBs, PCP / all chlorophenols, all chlorinated pesticides (DDT, toxaphene etc.), creosote and all chlorinated and non-chlorinated hydrocarbons. This is bad bad stuff. Isn’t it great that a company has figured out a way to get rid of it? Treated soil, free of metals, is safe for reuse. Yum…I’d love to eat onions that grow in this supertreated soil. Bennett Environmental Inc. has delivered solutions to satisfied customers in the environmental industry for over 30 years.
With laws increasingly excluding the landfill option, as well as the potential future liability associated with landfills, permanent treatment has become the preferred option for impacted sites. Ever drive through Staten Island and see their landfill? Yeeeesh, who wants one of those?? BEL’s fully automated, high-capacity plant has the ability to treat up to 100,000 tonnes of contaminated soils per year. Restrictions on landfills could also mean more dirt destined for incineration.
John Bennett, who’s the founder and is still the boss, is an ex Monsanto guy who is one of the world’s leading experts on Hazmat treatment and the use of thermal oxidizers in treating hazardous material. Mr. Bennett designed and constructed the economical and highly efficient, proprietary thermal oxidation equipment used by Bennett Environmental today.
With the growing demand, BEL has constructed a new facility. As of early December, they have now completed all the weather sensitive work on the new facility in New Brunswick. (not New Brunswick, NJ – home of Rutgers football). The project is on schedule with the commissioning stage anticipated to begin in May and full operation in July 2004. This means more revenues and earnings for BEL in 2004.
The community and surrounding region have been very supportive of the project. All levels of government remain solidly behind the proposal and have never wavered in their backing, despite strong attempts by certain special interest groups to misrepresent the long-term environmental effects of the plant. That’s right, nuke the baby whales.
Currently the Company is in possession of approximately $260 M Cdn ($195M US) of contracts that are expected to ship into their facilities by the end of 2005. As announced on October 23, 2003, the Company's third quarter 2003 revenues were at record levels of $22.4M Cdn ($16.2M US), more than double the revenues from the same quarter in the prior year. The Company expects to meet full year analyst consensus targets for earnings of $1.14 Cdn or $0.80 US per share, which represents more than a 50% increase from last year. As the US Dollar drops in comparison to the Canadian dollar, owning this company makes more and more sense for US shareholders. BEL processed 23,000 tonnes of soil last quarter, so I guess good rule of thumb is that BEL’s revenue is $1,000/ton of soil processed. Wait til the new plant is running (another 100,000 tonnes)…woo hoo! The company's current purchase orders and backlogs should keep its current and planned second facility operating at near full capacity for the next few years.
Here’s what Mr. Hazmat has to say: "I am pleased with the results of the quarter. Our business is continuing to grow and our Q3 revenues and profits were equal to those of the first two quarters of this year combined. Demand for soil remediation services remains high. We have soil from 11 projects in storage awaiting treatment. Sizable shipments from at least six projects are expected by the end of the year.
One has to remember that even though these plants are, at the end of the day, good for the environment, no one wants them in their back yard. As a result, the barriers to entry for competition are HUGE and this could lead to fatter margins for BEL. The new C$20 million facility will be based in Belledune, N.B., an economically depressed town near the Quebec border. Belledune is already home to numerous industrial plants, including a lead/zinc smelter and a 450-megawatt coal-fired generating station.
This makes the math pretty easy. BEL will make $1.15 per share for 2003 and will pump it up to $2.40/share in 2004 with the increased revenues from the new plant. At the existing PE of 25.8 this propels the stock price range from $17.57 to $43.45 in 2004. These numbers are easily past my modest sell target. These earnings are backed by $$$MR. MARKET$$$’s 2004 revenue projections of 150,000 tonnes times $1,000 per tonne = $150,000,000 Cdn.
BEL’s return on equity is already 34.7% (vs. industry average of 14.9%) which reflects its big fat margins. Even more amazing is its Return on Assets (ROA) of 24.0% vs. the Industry Average of 3.3%. All this is accomplished over its Debt/Equity ratio of only 0.01. BEL’s Book Value per Share at the end of 2002 was only 1.37, meaning if they just sold their plants at book value, they’d get back most of their money on their enterprise value. This is a testament to the safety of this investment.
This ain’t no secret. Goldman Sachs owns 201,000 shares. Fidelity owns 169,000 shares. With the big earnings coming, more big boys will follow.
When I drink too much beer, I also leak oil, but that’s a more natural kind of oil that does not need remediation. I drank so much on New Year’s Eve that I pissed in my refrigerator.
Today I bought BEL (Bennett Environmental) at 21.12. I will sell it in 4 to 6 weeks at 24.38. Here’s why I like BEL:
What does Bennett do? Bennett is like earthworms. They eat bad dirt and turn it into good soil. Actually they heat up the dirt to a bazillion degrees to destroy off all the bad stuff in it. High temperature thermal processing is a complete, permanent and safe solution for the treatment of contaminated soils and is recognized as the Best Demonstrated Available Technology (BDAT) by both government agencies and companies alike. Bennett has developed the Mark IV Thermal Oxidizer which permanently treats soil contaminated with chlorinated hydrocarbons with 99.9999% efficiency. If they made a better one, it would be the Mach V and Speed Racer could drive it with Spritel and Chim Chim in the trunk.
Yup, we’re talking waste management, and it ain’t the Soprano’s and Ralphie’s head in a bowling bag at the Bada – Bing club. This is north of the border waste management, where consumption of Molson Golden rules the day.
BEL is up over 210% in the last 52 weeks but is still relatively cheap with a PE of 25.8. Earnings have a really good shot of growing substantially. Remediation of contaminated sites is a growing environmental issue. The worldwide increase of environmental awareness has resulted in new laws and regulations governing all aspects of waste storage, treatment, and disposal. Recent restrictions on the disposal of untreated contaminated soil into landfills have lead to significant growth in the soil treatment market. With a strengthening economy, companies will be more willing to take care of these HUGE problems.
BEL’s soil treatment facility is permitted to treat soil contaminated with dioxins, furans, PCBs, PCP / all chlorophenols, all chlorinated pesticides (DDT, toxaphene etc.), creosote and all chlorinated and non-chlorinated hydrocarbons. This is bad bad stuff. Isn’t it great that a company has figured out a way to get rid of it? Treated soil, free of metals, is safe for reuse. Yum…I’d love to eat onions that grow in this supertreated soil. Bennett Environmental Inc. has delivered solutions to satisfied customers in the environmental industry for over 30 years.
With laws increasingly excluding the landfill option, as well as the potential future liability associated with landfills, permanent treatment has become the preferred option for impacted sites. Ever drive through Staten Island and see their landfill? Yeeeesh, who wants one of those?? BEL’s fully automated, high-capacity plant has the ability to treat up to 100,000 tonnes of contaminated soils per year. Restrictions on landfills could also mean more dirt destined for incineration.
John Bennett, who’s the founder and is still the boss, is an ex Monsanto guy who is one of the world’s leading experts on Hazmat treatment and the use of thermal oxidizers in treating hazardous material. Mr. Bennett designed and constructed the economical and highly efficient, proprietary thermal oxidation equipment used by Bennett Environmental today.
With the growing demand, BEL has constructed a new facility. As of early December, they have now completed all the weather sensitive work on the new facility in New Brunswick. (not New Brunswick, NJ – home of Rutgers football). The project is on schedule with the commissioning stage anticipated to begin in May and full operation in July 2004. This means more revenues and earnings for BEL in 2004.
The community and surrounding region have been very supportive of the project. All levels of government remain solidly behind the proposal and have never wavered in their backing, despite strong attempts by certain special interest groups to misrepresent the long-term environmental effects of the plant. That’s right, nuke the baby whales.
Currently the Company is in possession of approximately $260 M Cdn ($195M US) of contracts that are expected to ship into their facilities by the end of 2005. As announced on October 23, 2003, the Company's third quarter 2003 revenues were at record levels of $22.4M Cdn ($16.2M US), more than double the revenues from the same quarter in the prior year. The Company expects to meet full year analyst consensus targets for earnings of $1.14 Cdn or $0.80 US per share, which represents more than a 50% increase from last year. As the US Dollar drops in comparison to the Canadian dollar, owning this company makes more and more sense for US shareholders. BEL processed 23,000 tonnes of soil last quarter, so I guess good rule of thumb is that BEL’s revenue is $1,000/ton of soil processed. Wait til the new plant is running (another 100,000 tonnes)…woo hoo! The company's current purchase orders and backlogs should keep its current and planned second facility operating at near full capacity for the next few years.
Here’s what Mr. Hazmat has to say: "I am pleased with the results of the quarter. Our business is continuing to grow and our Q3 revenues and profits were equal to those of the first two quarters of this year combined. Demand for soil remediation services remains high. We have soil from 11 projects in storage awaiting treatment. Sizable shipments from at least six projects are expected by the end of the year.
One has to remember that even though these plants are, at the end of the day, good for the environment, no one wants them in their back yard. As a result, the barriers to entry for competition are HUGE and this could lead to fatter margins for BEL. The new C$20 million facility will be based in Belledune, N.B., an economically depressed town near the Quebec border. Belledune is already home to numerous industrial plants, including a lead/zinc smelter and a 450-megawatt coal-fired generating station.
This makes the math pretty easy. BEL will make $1.15 per share for 2003 and will pump it up to $2.40/share in 2004 with the increased revenues from the new plant. At the existing PE of 25.8 this propels the stock price range from $17.57 to $43.45 in 2004. These numbers are easily past my modest sell target. These earnings are backed by $$$MR. MARKET$$$’s 2004 revenue projections of 150,000 tonnes times $1,000 per tonne = $150,000,000 Cdn.
BEL’s return on equity is already 34.7% (vs. industry average of 14.9%) which reflects its big fat margins. Even more amazing is its Return on Assets (ROA) of 24.0% vs. the Industry Average of 3.3%. All this is accomplished over its Debt/Equity ratio of only 0.01. BEL’s Book Value per Share at the end of 2002 was only 1.37, meaning if they just sold their plants at book value, they’d get back most of their money on their enterprise value. This is a testament to the safety of this investment.
This ain’t no secret. Goldman Sachs owns 201,000 shares. Fidelity owns 169,000 shares. With the big earnings coming, more big boys will follow.
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