Cramer spoke with David Steiner, CEO of Waste Management (WMI), to find out just how recession proof the garbage business is. Steiner pointed out that WMI’s business is split one-third residential, one-third commercial and one-third industrial waste services. He said that while the company’s residential and commercial businesses are recession-proof, about one-sixth of Waste Management’s overall business is levered to construction and other economically sensitive areas. He said it’s in this area that the company saw a 10-15% drop in volume this quarter. “There are certainly parts of our business that are more subject to the economy than others,” the CEO said. “Overall we like to think that we’re a pretty good recession-resistant company.” Steiner also said that commodity costs are another variable. He said the big drop in commodity prices has affected the company’s recycling businesses, but he’s now seeing prices begin to stabilize. Steiner said that while Waste Management has huge fixed costs, he’s making efforts to right-size the operation, adding the company’s 5% dividend yield is safe. Waste Management has plenty of cash to pay it, he said, and he expects cash flow to grow in 2009. Steiner said Waste Management is also looking for acquisitions and expects to meet last year’s target of $250 million worth of mergers. Cramer said he’s still a big fan of Waste Management. Join the fastest growing community of small cap investors at Stockhideout.com