Gamble of the week: Profit from waste

The shares in this waste management firm have suffered from poor performance on the Continent. Yet major new investment makes this stock a buy for the brave, says Paul Hill.

Shanks shares are down nearly 40% over the past year even though it operates in a relatively stable industry and is winning new business. In April the firm closed a £750m, 25-year public finance initiative (PFI) contract with Barnsley, Doncaster and Rotherham councils for the treatment of black bag waste.

Shanks will build a mechanical biological treatment and anaerobic digestion facility in Yorkshire by 2015. The plant will process "solid recovered fuel" (plastics and biodegradable waste), biogas for energy generation, and digestate for compost and fertiliser.

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Paul gained a degree in electrical engineering and went on to qualify as a chartered management accountant. He has extensive corporate finance and investment experience and is a member of the Securities Institute.

Over the past 16 years Paul has held top-level financial management and M&A roles for blue-chip companies such as O2, GKN and Unilever. He is now director of his own capital investment and consultancy firm, PMH Capital Limited.

Paul is an expert at analysing companies in new, fast-growing markets, and is an extremely shrewd stock-picker.