Questor share tip: Don't waste this opportunity in Shanks The new chief executive, Peter Dilnot hardly managed to get his seat warm before the speculation emerged - he started on February 1. Under his stewardship, Questor does not expect any major change in strategy for the group. The shares were recommended this year because the valuation plunged in the final months of 2011. That's because of the company's eurozone exposure. In the year to March 2011, 51pc of revenues were generated in the Netherlands, 24pc in Belgium, 24pc in the UK and 1pc in Canada. So, with such large European exposure, it is hardly surprising that the shares fell. The company's business is heavily tied into industrial activity. Quite simply, a higher rate of business activity means more rubbish. So, the shares are leveraged to an upturn in the eurozone economy, having priced in so much doom. According to data group Markit, January's survey of Dutch manufacturers indicated a further deterioration in operating conditions, but to a much lesser degree than in previous months. Also, the headline purchasing managers' index hit a five-month high of 49, although any figure below 50 still represents a contraction. Earlier this week Shanks issued its latest trading update. It noted that the backdrop was challenging, but trading was in line with expectations. This was despite the fact that paper recyclate prices have fallen, hitting its solid waste operations. The company is investing heavily in its business, particularly the UK. Shanks said its investment programme remains on track and the first £100m phase is expected to achieve its targeted returns of 12pc to 15pc this year. Also, its existing PFI contracts have continued to perform well and trading margin has remained at 9pc. Meanwhile progress continues on closing the Barnsley, Doncaster, Rotherham and Wakefield contracts. The company said it was disappointed not to proceed to preferred bidder on several recent bids, but the UK municipal pipeline remains strong. So, the backdrop for Shanks is difficult. However, the company is unique, it's business is supported by regulation mandating better methods of waste disposal. However, it has strong operational gearing to any recovery. Its investment programme and ongoing cost saving measure means the future looks bright when the eurozone works its way out of the current crisis. Trading on a March 2012 earnings multiple of 14.8 times, falling to 13.3 next year, the shares are yielding a prospective 3.2pc rising to 3.4pc. Named as a tip of 2012 on January 2 the shares are up 19pc since then, compared with a FTSE 100 up 6pc, although they have been tipped as high as 121p. The shares remain a buy, although they are likely to pause for breath for now.