Bright Kindle pumps 5.3% after suspension lifted

Bright Kindle Resources [BKR 1.37, up 5.4%; 849% avgVol] [link] had its suspension lifted at 10:30 a.m. yesterday by the PSE after the company provided a satisfactory amount of additional information on its P5 billion acquisition of Strong Built Mining (SBM). BKR is owned by Martin Romauldez, the current Speaker of the House of Representatives, and the cousin of the current President, Ferdinand Marcos. The additional info provided by BKR indicated that SBM holds a Mineral Production Sharing Agreement over 7,411 hectares of land containing “economically viable deposits of magnetite concentrate”, and that SBM “currently operates approximately 30% of its tenement area”. BKR’s interest is in monetizing the remaining 70% of the tenement area. BKR referred to this as a “clear opportunity for potential growth.” BKR said that there might be possible mining synergies between SMB and another of BKR’s investments, Marcventures Holdings [MARC 0.73 unch; 14% avgVol].

MB bottom-line: The closing price doesn’t reflect the enthusiasm for this stock earlier in the day. The first trades to cross when the suspension lifted were at P1.42/share, which was a 9.2% increase from the stock’s previous close. The price bounced around a lot through the morning and peaked at P1.55/share near lunch, which was a 19.2% gain from the previous close. BKR’s price wilted in the post-lunch trading hours, and eventually settled at a session-low of P1.37/share, which was still good enough for a 5.4% gain. Volume throughout the day was especially heavy. A total of 1.85 million shares traded hands, which is the most the stock has seen in well over a month. 

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