Hot Stock Metal Reclamation hits limit up after proposing to sell lead processing, technology assets

by **Cals** Thu 19 Jun 2014, 03:13

Hot Stock Metal Reclamation hits limit up after proposing to sell lead processing, technology assets

Business & Markets 2014

Written by Chong Jin Hun of theedgemalaysia.com

Wednesday, 18 June 2014 12:04

KUALA LUMPUR (June 18): Top gainer Metal Reclamation Bhd rose as much as 44 sen or 30% to hit limit up, albeit on thin trade, after the company proposed to sell its lead processing and technology assets.

At 11.46am, Metal Reclamation changed hands at RM1.92 with 37,000 shares done.

Bloomberg data showed that Metal Reclamation shares had risen from about 60 sen last week to its current level. At current prices, Metal Reclamation shares had gained 187% so far this year, significantly outperforming the FBM KLCI's 0.4% rise.

Metal Reclamation's recent rise coincided with its announcement last Thursday (June 12) on the proposed sale of its right to set up lead smelting and refining plants, besides the group's lead product technology to Green Lead Industries Ltd.

Metal Reclamation is selling these assets for RM160 million cash. The proceeds will be used to reduce Metal Reclamation's debt and finance its working capital needs.

Today, Kenanga Investment Bank Bhd said in a note Metal Reclamation's share price immediate technical support and resistance are seen at RM1.43 and RM1.54 respectively.

According to Metal Reclamation's website, its subsidiaries are mainly involved in the smelting, recycling, refining and sale of lead and lead alloys.

Metal Reclamation also owns a 47.5% stake in Singapore-based Nutek Pte Ltd, which manufactures automated equipment for the electronic and electronic-related industries.