#Hot Stock* Metal Reclamation hits limit down on PN17 trigger

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KUALA LUMPUR (Sept 02): Metal Reclamation Bhd shares dived as much as 30 sen or 32% to hit limit down, albeit on thin trade. The decline followed the lead alloy smelter's announcement last week that Bursa Malaysia had placed the firm under the bourse regulator's Practice Note 17 (PN17) category.

Today, Metal Reclamation fell 29 sen or 31% to 65.5 sen at 3.40pm, with some 15,200 shares traded. The stock had earlier fallen to an intraday low of 64 sen.

Metal Reclamation shares have fallen to current levels from a six-month intraday high of RM1.92 on June 18 this year, Bloomberg data showed.

This compares to a low of 46.5 sen last April 14.
 
Last Friday, Metal Reclamation said it had triggered the PN17 criteria, as its shareholders' equity was less than 50% of its paid-up capital.

The company will be required to submit a regularisation plan to the Securities Commission or Bursa Malaysia, and implement the plan within the time frame decided by regulators.

Metal Reclamation's financials have weakened. In financial year ended June 30, 2014, net loss widened to RM4.78 million from a net loss of RM4.27 million a year earlier, while revenue fell to RM52.87 million from RM87.61 million.

On prospects, the company said it was striving to mitigate its current poor performance, with plans to continue importing raw materials to minimise the erratic supply of battery scraps and raw materials.