Alger Spectra Fund on GFL Environmental Inc.
Thesis
GFL is a major North American environmental-services provider with solid-waste collection, recycling and related operations across Canada and the United States. Better-than-expected first-quarter results and a higher full-year outlook indicated solid operating performance. Shares still fell because a sizeable Western Canada acquisition raised concerns about equity funding 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