Stericycle (SRCL) is a waste management service provider. Although the company boasts high net margin versus competitors, we believe it is trading at a significant discount due to some pricing pressures, an increase in capital spend for the implementation of an enterprise resource planning system and a levered balance sheet resulting from acquisition activity. Our contrarian call has the potential to be significantly rewarded as transformation initiatives bear fruit over the next several years.
From John Rogers (Trades, Portfolio)' Ariel Fund third-quarter 2018 shareholder commentary.
