Alloy Steel Inc. (fka AYSI)

[DaveinHackensack]

AYSI is clearly in a rough economic period

That's why I ran the Altman-Z Score model on it in the first place.

I was fairly confident in the quality of AYSI's product, and felt that, since the product has been accepted by blue chip miners in Australia, the company ought to be able to sell it to blue chip miners in other parts of the world. Also, since AYSI's technology makes sense for wear plates on bulldozer blades and truck beds, its similar 3-D cladding technology ought to make sense for the pipes used in ore processing and dredging.

My main concern was that AYSI might go bankrupt before the global recession turns, and not survive to take advantage of those opportunities for expanding its business.

That's why I ran the Altman-Z Score model, to get an objective, quantitative sense of that risk. I was pleasantly surprised that AYSI scored so high on the model: a 4.89, when any score above 2.99 means the company is in good financial health.