Q. Why haven't my shares of Waste Management Inc. (WMI) done better? Is it still mixed up in all those accounting problems? - VC, via the Internet

A. The nation's largest garbage-collection and recycling company hopes the odour of past accounting problems is finally dissipating, because it faces more pressing challenges.

A US District Court recently ordered former chief financial officer James Koenig to pay more than $4 million in disgorgement, prejudgment interest and civil penalties for participating in the firm's alleged accounting misdeeds, which inflated profits between 1992 and 1997. Mr. Koenig's attorney said he stands by the firm's accounting and will appeal.

In 2005, former chief executive Dean Buntrock and three other executives settled with the Securities and Exchange Commission (SEC), agreeing to pay more than $30 million without acknowledging guilt.

When the firm reduced its earnings by $1.7 billion in 1998, it was the largest corporate restatement in history, according to the SEC. The concerns have shifted to other matters, with labour issues, rising oil prices, the weakening economy and slowing residential construction weighing on the bottom line. Yet strong cash flow, an essential business, a 26 percent US market share and ownership of about 300 landfills bode well for the company's long-term future.

Shares of Waste Management are down four percent this year following last year's 11 percent decline and a 21 percent increase in 2006. It has increased its scheduled share buy-backs.

Waste Management has been working to get its financial house in order. Recent price increases, its more careful growth strategy, divestiture of some businesses, improved technology and tighter cost containment are improving operating margins.

The consensus analyst recommendation on shares of Waste Management is "buy", according to Thomson Financial. That consists of five "strong buys", four "buys" and one "hold".

Earnings are expected to increase nine percent this year, with the five-year annualised growth rate projected at 10 percent.

Andrew Leckey answers questions only through the column. Address inquiries to Andrew Leckey, PO Box 874702, Tempe, Ariz. 85287-4702, or by e-mail at andrewinv@aol.com