Alger Focus Equity Fund on GFL Environmental Inc.
Thesis
GFL is a large diversified environmental-services company with solid-waste collection, recycling and related operations across Canada and a broad U.S. footprint. Better-than-expected first-quarter results and a raised full-year outlook showed underlying operating strength. The stock nevertheless weakened after a sizeable Western Canada acquisition raised concerns about the equity financing and the work required to integrate a large new platform.
“the company reported better-than-expected first-quarter results and raised its full-year guidance.”
Key risks
- Equity issuance used to fund the acquisition
- Integration risk from absorbing a large new platform