Monday April 13, 3:00 pm Eastern Time
Company Press Release
SOURCE: Hornblower & Weeks Incorporated
Hornblower & Weeks Initiates New Buy Recommendation for
Metalclad Corporation
NEWPORT BEACH, Calif., April 13 /PRNewswire/ -- Hornblower & Weeks Incorporated is initiating a
buy recommendation on Metalclad Corporation (Nasdaq: MTLC - news) for accounts willing to invest in
long-term speculative growth situations, with significant capital gains potential.
Metalclad Corporation, a U.S. Company, is engaged in the development of industrial waste treatment
facilities in Mexico and insulation services in Southern California.
Environmental problems in Mexico are tremendous -- for instance, 8,000,000 tons of hazardous waste are
created annually with only around 25% being properly recycled or disposed of. The situation offers a huge
opportunity for Metalclad to capitalize on.
On February 26, 1998, Metalclad announced that it has begun construction of an industrial waste landfill in
the state of Aguascalientes, Mexico. Completion of the project is expected in August 1998, at which time the
company can begin to service one of the fastest growing industrial areas in the country. Aguascalientes,
represented by a state government with an honest reputation and known to be in favor of industrial
development, has been attracting both prominent national and international investments. Companies such as
Nissan (now investing $1 billion to double the size of their plant), Xerox (who recently expanded their
Mexico operation to be their largest in the world), and Texas Instruments (who is currently constructing a
new $1 billion plant) are just a few of the many foreign entities building in the region.
Metalclad's Mexican operation Administracion de Residuos Industriales, S.A. de C.V., known as ARI,
consists of a network of eight branches strategically located it the heart of Mexico, with more than 200
trained employees under a seasoned management team led by Grant Kesler, President, and Javier Guerra,
Vice President. This operation will support the landfill and treatment facilities when they are finished.
Meanwhile, the company has established a business similar to SAFETY KLEEN (SK-27) that markets part
washers, cement kiln burning of certain hazardous wastes, and recycling of chemical solvents.
In addition to the Aguascalientes site, the company has been pursuing two other sites in the states of Puebla
and Mexico; with the objective of starting and completing these landfill and treatment facilities in 1999.
Large opportunity - Hazard waste remediation
Landfill and treatment facilities under construction
Seasoned management team
Infrastructure in place
Additional sites in preparation
Conclusion: Hopefully over the next 18-24 months, everything will fall into plate creating a successful and
profitable operation. Management estimates that when fully ramped up, each site could handle 360,000 tons
of hazardous waste per year; with a potential of 5 sites up and running in the next couple of years the
company could earn $1.50+ per share.
Additional information is available upon request. The information is based on sources believed reliable, but it
is neither guaranteed by this corporation nor considered all-inclusive. This report is not to be construed as an
offer or solicitation of an offer to buy or sell the securities mentioned herein. Opinions expressed are subject
to change without notice. All of Herrman's reports are follow-up of verbal recommendations. Hornblower &
Weeks, Inc., directors, employees, related accounts, and/or discretionary accounts at times may have long
or short positions which could be substantial, and may purchase, sell, or trade these securities from time to
time in the open market. The securities discussed herein are suitable for investors aware of the risks.
SOURCE: Hornblower & Weeks Incorporated
More Quotes and News:
METALCLAD CORP (Nasdaq:MTLC - news)
Related News Categories: banking, construction, environmental |
