France-based global utility Veolia Environnement (VE)
has given investors a pretty wild ride. The company's excessive
ambition for growth stoked a lot of bullish sentiment early in the
decade, but the combination of Europe's deep recession and sloppy
execution lead to disappointing margins, cash flows, and investors.
Veolia
management started taking turnaround efforts seriously in 2013, pushing
ahead with cost cuts, asset sales, and a restructuring of the company's
operating priorities. The company still has a lot to do if its going to
produce margins on par with its close peer Suez Environnement (OTCPK:SZEVY), let alone American comps like American States Water (AWR) or Waste Management (WM),
but the better than 100% trough-to-peak move tells me that a lot of
investors buy the self-improvement story and/or want to be positioned in
basic services as Europe's economy turns around.
Continue here:
The Market Seems To Believe Veolia Has Turned The Corner
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