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Speaker 1: Broadcasting live to New York, Bloomberg eleventh, Rio to Washington,

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Speaker 1: d C, Bloomber to Boston, Bloomberg twelve to San Francisco,

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Speaker 1: Bloomberg nine to the country Jam Channel one nineteen and

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Speaker 1: around the globe the Bloomberg Radio plus DApp and Bloomberg

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Speaker 1: got gone. This is taking Stock. Coming up on taking Stock,

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Speaker 1: the chief executive of a stock that is hired today

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Speaker 1: by more than three and a half percent after announcing

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Speaker 1: results that exceeded analyst estimates. We're gonna tell you all

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Speaker 1: about waste management that's coming up. Let's get to Charlie

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Speaker 1: Pellett in the newsroom now he's got a Bloomberg business flash,

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Speaker 1: and I thank you, Kathleen, thank you. Pim Thedal. The

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Speaker 1: smpnz dack very close to the worst level of the day,

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Speaker 1: twenty nine minutes to go ahead of the clothes, stick

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Speaker 1: around and find out which way markets are going right

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Speaker 1: now though decidedly negative. Tone SMP down twenty a drop

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Speaker 1: of one percent. Down indust reels down to sevent to

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Speaker 1: drop there of one point two percent, as stackdown fifty

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Speaker 1: four a drop of one point one percent. We are

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Speaker 1: brought to you by National Realty returns on cash in

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Speaker 1: rented real estate. Find them at n r I, a

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Speaker 1: dot net. Apple leading an afternoon sell off in technology,

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Speaker 1: overshadowing corporate deals and strong results from Facebook. Apple is

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Speaker 1: down three point two percent now, Facebook surging seven percent

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Speaker 1: after the bell we hear from Amazon dot Com. It

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Speaker 1: shares now lower by five point five percent. Commercial real

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Speaker 1: estate services companies cbr E Group beating estimates. Bob Slenttech

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Speaker 1: is cbr ES CEO. He was interviewed today on Bloomberg Television.

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Speaker 1: It was a good quarter for us around the world.

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Speaker 1: Across our product lines. We had good growth, double digit growth,

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Speaker 1: and all those services profit lines and in all our regions.

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Speaker 1: Um The thing that I think drove it was good solid,

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Speaker 1: really state fundamentals, probably better than people realizing. Fundamentals are

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Speaker 1: rental rates and occupancies. But also something that was really

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Speaker 1: important for us as we took market share in the

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Speaker 1: majority of the markets that we're in and across our

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Speaker 1: product lines. The US economy expanded in the first quarter

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Speaker 1: at the slowest pace in two years, as American consumers

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Speaker 1: reigned in spending and companies tightened their belts in response

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Speaker 1: to weak global financial conditions. On a plunge in oil prices.

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Speaker 1: Crude oil up today by thirty six cents forty five

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Speaker 1: sixty nine on West Texas Intermediate, a gain of eight

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Speaker 1: tenths of one percent. We've got gold of seventeen sixty

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Speaker 1: a gain of one point four percent. And now let's

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Speaker 1: take a look at some of the other stories making news.

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Speaker 1: Thank you Charlie from the Bloomberg Newsroom. I'm Ramie in

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Speaker 1: essent cio. This news update is brought to you by

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Speaker 1: the Jeep Grand Cherokee, the most awarded suv ever. The

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Speaker 1: Grand Jeriche continues to raise the bar with its luxurious

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Speaker 1: interior and legendary four by four capability drive. When at

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Speaker 1: your low call Jeep dealer today, Americans who get their

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Speaker 1: health insurance through President Obama's Affordable Care Act will likely

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Speaker 1: be shelling out more money next year. Many insurers say

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Speaker 1: the last coverage has been a financial drain for them,

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Speaker 1: and there's been a wave of insurers already seeking premium increases.

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Speaker 1: What does former House Speaker John Bayner think of Ted Cruz. Well,

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Speaker 1: for one thing, he calls the Texas Senator quote lucifer

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Speaker 1: in the flesh. Byner adds that he can get along

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Speaker 1: with almost everyone, but that he's never worked with a

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Speaker 1: quote more miserable s ob in his life. Authorities say

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Speaker 1: of Baltimore police officer shot and wounded a thirteen year

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Speaker 1: old boy who refused to drop a replica of a

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Speaker 1: semi automatic pistol. That team is expected to survive. Here's

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Speaker 1: Police Commissioner Kevin Davis. It's a replica from the automatic pistol.

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Speaker 1: And I looked at it myself today. I stood right

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Speaker 1: over top of it. I put my own eyes on it.

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Speaker 1: It's an absolute identical replica semi automatic pistol. Those police

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Speaker 1: officers had no way of knowing that it was not,

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Speaker 1: in fact, an actual firearm. And last winner's East Coast

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Speaker 1: blizzard has set another record in New York, while a

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Speaker 1: record in Newark was deleted. The changes were prompted by

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Speaker 1: questions about the accuracy of snowfall measurements. Noah says the

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Speaker 1: twenty six point eight inch total reported for New York

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Speaker 1: Central Park will be changed to twenty seven point five inches,

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Speaker 1: an all time record. Global news twenty four hours a day,

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Speaker 1: powered by our journalists in more than one news bureaus

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Speaker 1: around the world. From the Bloomberg Newsroom, I'm Rami and

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Speaker 1: a censio Charlie, and we thank you and again recapping

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Speaker 1: SMP down twenty points, a drop of one percent, down

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Speaker 1: in dust rols down two points, drop of one I'm

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Speaker 1: Charlie Peloton. That's a Bloomberg Business flash. This is taking

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Speaker 1: Stock with Kathleen Hayes and Prim Fox on Bloomberg Radio.

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Speaker 1: When people talk about garbage, they usually talk about something

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Speaker 1: they just want to get rid of and throw out.

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Speaker 1: When they talk about garbage at Waste Management, they talk

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Speaker 1: about something that is very, very off. Well. In fact,

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Speaker 1: this company based in Houston operations across North America, posted

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Speaker 1: better than expected results for its first quarter, aided by

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Speaker 1: better pricing and increased volume. We're joined now from Houston

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Speaker 1: by David Steiner. He's the president and CEO of Waste Management.

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Speaker 1: Thank you for joining us, David, Thanks for having me

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Speaker 1: so uh in a nutshell? What what is driving your

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Speaker 1: growth and your results? Yeah, you know, so when we

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Speaker 1: look at what we're doing, it's all driven by the

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Speaker 1: customer um. You know, this is the first time we've

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Speaker 1: had positive volume since two thousand and twelve, and that's

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Speaker 1: because we're trying to provide the best customer service to

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Speaker 1: the twenty one million customers that we provide cut service

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Speaker 1: to throughout the United States. This quarter it showed with

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Speaker 1: the most positive volume we've seen since two thousand and twelve.

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Speaker 1: But we did that without giving up price. And when

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Speaker 1: you can get price and volume on this this fixed

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Speaker 1: asset base that we have is when you really start

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Speaker 1: generating cash, and we just did. We did just that

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Speaker 1: this quarter. Um generating more cash and we've generated in

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Speaker 1: a quarter in in four years. What is the relationship

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Speaker 1: between waste Management's business and trends in the housing industry?

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Speaker 1: And I know you answered this today in terms of

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Speaker 1: geographic diversity. Yeah, it's a great question. And you know,

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Speaker 1: when you think about it, every time a subdivision is built,

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Speaker 1: we put a can out when they build the house,

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Speaker 1: and then we get a new residential customer because there's

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Speaker 1: a new house created. And then you've got to create

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Speaker 1: a lot of commercial businesses around that gas station's dry cleaners, restaurants,

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Speaker 1: And so every time a subdivision is built, we really

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Speaker 1: get a three for one pop to our volumes. We

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Speaker 1: get a residential customer, we get a roll off customer,

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Speaker 1: and we get a commercial customer. And so as we've

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Speaker 1: seen housing bounced back since the last recession. Um, we've

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Speaker 1: seen our volumes get better and better and better. Finally

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Speaker 1: this quarter turning positive about six months earlier than we expected.

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Speaker 1: So when you talk about customer service, you're to me

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Speaker 1: in a space that is kind of generic. Right. A

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Speaker 1: lot of people collect garbage, a lot of people have

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Speaker 1: landfills and do recycling. How do you how do you

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Speaker 1: use customer service to differentiate differentiate you from the competition

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Speaker 1: and creates just solid quarter? Yea. You know, I always

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Speaker 1: say we're sort of like the cable business. Um, every

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Speaker 1: week we all get a mailer saying we can reduce

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Speaker 1: your price for cable, but we don't take it because

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Speaker 1: we're gonna have to sit at our house for a

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Speaker 1: couple hours when they come and fix it, and then

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Speaker 1: they might have to come again to install it. And

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Speaker 1: you really don't want to spend the time until the

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Speaker 1: cable starts going out, and once it starts going out,

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Speaker 1: you look for another provider. And that's basically what's going

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Speaker 1: on in our industry. You know, if you provide that

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Speaker 1: great service, your customers generally don't want to switch. And

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Speaker 1: so that's why customer service is so important to not

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Speaker 1: only getting a new customer, but retaining that customer. Can

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Speaker 1: you tell us about strength and specific areas of the

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Speaker 1: country such as the South and I'm thinking of Florida,

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Speaker 1: the Gulf Coast and even California. Yeah. Absolutely. You know,

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Speaker 1: after the last downturn in two thousand nine, we really

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Speaker 1: saw the Midwest and the East Coast leading our company.

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Speaker 1: And that was unusual because because obviously the Sun Belt

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Speaker 1: has generally led the economy, but because the housing downturn

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Speaker 1: drove the recession in two thousand and nine, we saw

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Speaker 1: better volumes up north. Now we've seen it normalized where

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Speaker 1: the Sun Belts actually doing better, but the North and

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Speaker 1: the Midwest continues to be strong. We just see it

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Speaker 1: even stronger down in the Sun Belt. I just have

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Speaker 1: to ask you a question about you. You enjoy books

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Speaker 1: on quantum physics, and uh, you also enjoy model trains. Wow?

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Speaker 1: Does quantum thinking about that help you think about waste?

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Speaker 1: I'm gonna tell you a little story about that, because

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Speaker 1: um that happens to be on my Wickpitia page. And

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Speaker 1: I read that, and I said, I truly do like

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Speaker 1: quantum physics, and I read the books, but but I

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Speaker 1: don't know where the model trains came from and my

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Speaker 1: kids I didn't even know I had a Wickpitia page.

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Speaker 1: And my kids said, oh no, our friends go onto

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Speaker 1: your Wickpedia page and put strange things on. Did you

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Speaker 1: really drive this dow bony and you were when you

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Speaker 1: were a kid? No, I never drove us. Okay, you

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Speaker 1: heard it here. You heard it here, sports fans. He

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Speaker 1: does not does not get into model trains. I just

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Speaker 1: want to ask a little bit about capital investment. I

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Speaker 1: know you've been spending money. Tell us about something called

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Speaker 1: leech eight. I know this is water that has percolated

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Speaker 1: through a solid or leached out of some of the constituents.

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Speaker 1: What is leach shape and how does that affect your business? Yeah, so,

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Speaker 1: any fluid that comes out of our landfills is classified

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Speaker 1: as lee chap, and you know it's it's generally fairly benign,

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Speaker 1: but you want to treat it before you put it

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Speaker 1: back into the water system. And what happened to us

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Speaker 1: this year is that we got an extraordinary amount of

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Speaker 1: leach ape because of the heavy rains and then um

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Speaker 1: generally it goes to a water treatment facility, and one

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Speaker 1: of the regional water treatment facilities in the mid Atlantic

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Speaker 1: actually had too much water, so they quit taking lead chap,

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Speaker 1: so we had to transport it all the way up

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Speaker 1: the East coast, and so our transportation costs went up

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Speaker 1: by about our leech a costs went up by about

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Speaker 1: fourteen million dollars. And so what we're gonna do is

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Speaker 1: start building our own water treatment plants so that we

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Speaker 1: can have our destiny in our own hands. Thank you

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Speaker 1: very much. David Steiner is the chief executive of a

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Speaker 1: Waste of Management. Shares of wait Management today are up

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Speaker 1: three and a half percent. You're listening to Taking Stock

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Speaker 1: n BIRK radio. Up next, I'll look at the stock

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Speaker 1: market one day after the FED in the Bank of

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Speaker 1: Japan and on a day when GDP was pretty weak.

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Speaker 1: This is the MC radio