Topic: How To Invest

What is your opinion of Stericycle? Thanks.

Article Excerpt

Stericycle Inc., $92.11, symbol SRCL on Nasdaq (Shares outstanding: 87.0 million; Market cap: $7.9 billion; www.stericycle.com) collects, treats and disposes of medical waste. The company serves 489,000 customers that range from outpatient clinics, hospitals, and dental offices to drugmakers, blood banks and even tattoo parlours. As well, it teaches hospital employees how to handle medical waste. Stericycle is the leading medical-waste-disposal firm in the U.S. It also operates in Canada, the U.K. and six other countries. The company was founded in 1989, when incidents of syringes washing up on beaches prompted the U.S. Federal government to enact strict standards for medical-waste disposal. Medical facilities are eager to outsource waste disposal, because it is difficult for them to meet these higher standards, and failing to do so leaves them vulnerable to legal threats. Stericycle has 136 processing centers and 129 transfer sites. Its size lets it profit from economies of scale. The company treats medical waste through “autoclaving” (using high temperature and pressure…