COMMON STOCK $ENSE: U.S. Ecology (ECOL): Insider Purchases Support Our View that Shares are Bargain

Wednesday, September 22, 2010

U.S. Ecology (ECOL): Insider Purchases Support Our View that Shares are Bargain

We were pleased to see insider purchases at U.S. Ecology (ECOL) - from Yahoo Finance (YHOO):

We purchased shares in July and family members have been recent buyers of ECOL on our recommendation. Prior commentary discusses our summary thesis on the company and a brief WSJ story, US Ecology Insiders Buy on a Dip, includes more details about the insider purchases. We continue to see current levels as attractive and insider purchases support this view.

Happy investing,

Jeffrey Walkenhorst
CommonStock$ense

Disclosure: long ECOL, YHOO.

© 2010 Jeffrey Walkenhorst
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Investment strategies and styles abound today, many of which are focused on short-term, trend trading without regard to the underlying business or its value. At CommonStock$ense, we believe investing in Common Stocks as a business owner not only makes Common Sense, but can significantly compound Cents into Dollars over time. Rather than viewing stocks merely as pieces of paper for trading, our approach is to invest as owners of (1) high quality, (2) franchise businessescapable of generating (3) high returns on equity and (4) large, predictable free cash flow through economic cycles with (5) limited capital requirements and (6) capable management teams. We strive to establish equity positions in such businesses at a (7) substantial discount to our estimate of fair value by taking advantage of changes in investor sentiment and market volatility, and/or temporary corporate setbacks. Finally, we generally seek companies with (8) limited to no debt.

Two caveats: every now and then, we may invest in (1) off-the-run, smaller franchise companies that we believe have sustainable competitive advantages and are trading significantly below the valuation an informed private market buyer would be willing pay for the entire business; and, (2) companies that have valuable, differentiated physical assets where we see a meaningful margin of safety relative to normalized asset values.

Our own experience at CommonStock$ense suggests that an owner-oriented investment approach leads to preservation of capitaland favorable long-term returns, as well as sound sleep at night. For helpful reference links, please also see CS$ companion site, The Discriminant Investor.

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* The content contained in this blog represents only the personal opinions of Mr. Walkenhorst based on his own research and analysis.

* All data, information, and opinions expressed, are subject to change without notice.

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COMMON STOCK $ENSE

Wednesday, September 22, 2010

U.S. Ecology (ECOL): Insider Purchases Support Our View that Shares are Bargain

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COMMON STOCK $ENSE

Wednesday, September 22, 2010

U.S. Ecology (ECOL): Insider Purchases Support Our View that Shares are Bargain

0 comments:

Post a Comment

About Blog

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Search This Blog

Wikinvest Wire

Approach

Blog Archive

About Me

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Risk Factors & Disclaimer