China Metal Recycling purchased

This morning I purchased added China Metal Recycling (HK:773) to the private portfolio paying HK$8.75 per share.

This is a stock which I looked at closely last year but initially declined to purchase in expectation that the company would need to raise more capital. I wasn't paying attention when CMR did make a substantial and dilutive placement and missed an opportunity to buy when the shares dropped in response to the placement announcement. In any event, I believe that the company offers sound fundamentals, a cohesive growth strategy focused on one industry. The investments made over the last few years are starting to show through in the company's earnings (see the interim report for the first half of 2010). Although not debt free, the balance sheet is sound. I am also attracted to the industry which I believe will benefit from higher commodity prices, continued green initiatives in China and industry consolidation.