Alger Mid Cap Growth Fund on GFL Environmental Inc.
Thesis
GFL is a large diversified North American environmental-services company with solid-waste collection, recycling and related operations. Better-than-expected first-quarter results and a raised full-year outlook showed underlying business strength. The stock nevertheless weakened after a sizeable acquisition in Western Canada raised concerns about the equity component of the financing and the integration of 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