Alloy Steel Inc. (fka AYSI)

[Swick984]

This was the first loss the company has posted in a quarter in the past 6 years. I am a bit surprised by the loss. Gross margins were at the lowest point this quarter than in the past 6 years. Gross profit margin of 25% was the lowest since the third quarter of 2009 (when it was 20%). Not sure why the big drop as they have averaged 47% over the past 10 years.

I would not expect that to continue. Even at these lower sales levels and a normal 45% margin, they should be able to post $0.02 per share per quarter. The balance sheet is a fortress with $0.81 per share in cash and an additional $0.23 in real estate. If they can sell the property, we're looking at over $1.04 in cash. They also have other assets. Tangible book value is now at $1.50 per share.

They need to to dividend some cash to shareholders or take this private...