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Covanta
Today Covanta (CVA) reported on its fourth quarter earnings. Covanta President and CEO Michael Ranger, who joined the company three months ago replacing Stephen Jones, spoke to the company s new strategic review announcing that he and the board believes some assets of the company are undervalued , that the profitability of the business is not uniform and that the company is testing the market for some parts of the business .
Ranger also mentioned resizing the business to exit less profitable operations to reduce risk and improve cash flow. Also, the company is reviewing cost and capital allocation, reducing leverage noting that there was an overhang on their equity value. The company anticipates the strategic review will be made in the coming months, with initial announcements being made by the middle of 2021. Aside from the strategic review, Ranger spoke to strong full year results, which fell within the company s pandemic expectations.