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Yeah only AYSI would announce earnings with a link...then you follow the link, but the numbers aren't there. 10Q should be released soon. But maybe do that before the PR??
There4 is news 100%, saw it on my streamer which I can't copy, Has to do with release of financials end of March and other initiatives , I do not wish to comment as thought others would link it without my hasty impressions.
Where is the news?
I went to otcbbmarkets website and could not find anything under disclosures & filings.
Below is the article I referenced before in the Australian Mining Review on their new smart wear plate.
https://australianminingreview.com.au/techtalk/sixth-sense/
AYSI 1.29 some bloke came in and hammered it, on almost no vol. past 5 day trading.
Added some today as well. The news for the iron ore industry out of Australia has been generally positive, with BHP hitting new highs today. Iron ore production has remained quite strong and the steel industry in China appears to have returned to normal levels of operations.
I think the quarterly report that will come out here in the next two weeks should continue to show strong operating results. The strength in the Australian dollar will help make Q4 reported results look stronger on a USD basis.
Business remains undervalued, with some good innovation and potential growth in the wireless smart plate. I'm curious if they will charge a fee on monitoring, which would be a nice recurring high margin cash flow stream...
AYSI :ok took some 1.15 for my album!
I’m liking the more frequent business updates on the news section of the new website.
https://alloysteel.net/2020/07/arcoplate-wam-v3-perfect-match/
Their LinkedIn page is also frequently updated. The most recent update highlights a new article in a premier mining magazine in Australia that goes into detail of their new “smart” wear plate and the benefits for operators. A comment on the post comes from a maintenance guy at Rio, where we see that they’re currently in testing for over six months. They seem very excited about the potential.
Nice bid of 10k at $1.20 out there currently.
Good luck to all. 17 years of watching Kosteckis screw their stock holders. Dumped my remaining shares today and invested in CLF. ALLOYS products are second to none. Witnessed with own eyes at Cliffs operated mine in Michigan. Unfortunately owned by greedy family with no intentions of taking care of share holders. My opinion for what it’s worth.
Yet some in family like motorcycles wonder if they will "ride the ruble", and yes this is not DD in strict sense but fickle musing is worth more than ingenious granular analysis perhaps with this stock (watchin 2 decades).
Family spats make this stock lose fats?
I'm more curious as to who the buyer was. This was the highest volume trading day over the past several years...
There are only 5,557,597 freely traded shares, excluding Maria Kostecki
Me thinks the seller is done. Unless another comes out from the cracks in the wall.
Well, someone thinks it’s cheap at $1.15...
Agree that the value is there, the issue has been that minority holders have not participated at all in the growth in value in the business.
It's incredibly disappointing to see the share price at $1.15, the same place it was back in 2010, 10 years ago, all while the company generated $37 million in earnings during at 10 year period... Instead the money has gone to two insider deals. At this point, there is nothing else for the company to buy from the family, except the property I guess. I've been wholly disappointed that I've parked a good amount of funds in this business, while my other portfolio positions have done extremely well.
Yep I agree. AYSI should continue to post good numbers. Maybe even terrific numbers given the recent rebound in iron ore prices. Quite a contrast from most companies that are still struggling in the wake of covid.
Not sure who would sell such a large block on the cheap. Maybe to go chase some junk stock that's up 200% this week for no reason. Weird market right now.
Looks like someone big wants out... Not me. I may add to an already significant position. The iron ore sector continues to hum along and with all the infrastructure stimulus being floated around the world, I see continued demand for steel and ore.
79,000 shares on the ask at $1.15?? Weird. AYSI one of the few cheap stocks left in a market that gets more overvalued each day.
Handled some at 1.15 for my album.
Very interesting. Maybe they will buy it from themselves in a few years for 10 million dollars.
Is Kostecki Technologies a competitor of Alloy Steel International Inc? Or are they part of AYSI's distribution process?
https://www.wearplateusa.com/
Western Australia iron ore exports hitting records. WA has benefitted from environment issues in Brazil for the past year and is now benefitting from greater COVID impacts on Brazil production.
https://www.argusmedia.com/en/news/2112620-western-australia-breaks-weekly-iron-ore-export-record
AYSI’s first quarter was also likely impacted by cyclone activity and closures that held back production. No similar issues in Q2.
The strong AUD of late just puts it back to where it was pre-COVID. I don’t see it having a major impact of the value of AYSI unless it continues to strengthen past .75 - .80 AUD/$.
Austrian dollar 70 cents today, in March it was as low as .57 , wonder if it is reflected in share price?
I added 6,000 shares this morning at $1.08. Iron ore at 7 month highs. Production issues in Brazil continue to favor mines in Australia. I expect this trend to continue for the foreseeable future with Australia gaining share of the overall market.
I added a few more today. Dirt cheap in the low $1's. AYSI putting up solid numbers at a time when most companies are struggling.
Just my opinion, but I feel the seller is getting close to complete. More impressed with the buyer. It's been very calculated.
Glad to see it filed on time. Another strong quarter, with reported EPS of $0.052. The numbers have $307,000 of non-cash amortization expense associated with the IP purchase. This is non-cash expense. On a non-GAAP basis, excluding that non-cash expense, I calculate roughly $0.07 in EPS.
This is something we'll have to keep doing in terms of an add-back going forward until the remaining intangible asset balance is fully amortized. The expense is essentially a mirror of the prior royalty expense for accounting purposes. Obviously, there is no cash impact as its non-cash.
I'm more interested in Q3 results to see how they've been weathering the COVID crisis, though from what I've read in terms of mining operations, there has been limited impact.
Any thoughts on the 10Q this morning? Looks like another solid quarter, even if revenues weren't all that. At least it was nice to see them get the filing in on time.
https://backend.otcmarkets.com/otcapi/company/financial-report/246666/content
New website up for Alloy. The new Industry 4.0 smart wear liners look interesting.
https://alloysteel.net/products/wam-wear-asset-monitoring/
Company appears to be humming along, doubt we'll see much impact from COVID on Q2 results that will be posted in a few weeks. Not sure if there will be much impact on Q3 results as well given it appears iron ore shipments out of Western Australia have continued relatively unaffected, with iron ore prices holding steady at attractive levels for miners.
https://www.afr.com/companies/mining/bhp-wants-to-grow-iron-ore-exports-by-14pc-20200428-p54nry
https://www.nasdaq.com/articles/australias-port-hedland-iron-ore-exports-to-china-jump-by-22-pct-in-march-2020-04-07
According to these articles, it appears iron ore activity is holding up.
https://www.afr.com/companies/mining/bhp-hiring-1500-workers-to-keep-mines-running-20200320-p54ca3
https://www.afr.com/companies/mining/bhp-s-iron-strength-amid-rout-20200323-p54cwx
Does the current share price, basically unchanged, reflect the present catastrophic event surrounding the landscape this firm addresses?
In isolation, it looks like a good deal for shareholders. EPS will get a boost going forward, and that cash was earning next to nothing on the balance sheet. However with the coronavirus disaster unfolding, and natural resource prices in the tank, I can't help wondering if AYSI's business has fallen off a cliff and the Kosteckis are carving some tasty meat off the carcass before "we" (shareholders) see it in the numbers...
I have been owning AYSI since 2014. Pretty mixed feelings about this. Price is pretty high, okay if revenues keep around this point, at least some usage for the cash pile. Obviously would have rather seen stock buybacks, pretty huge difference in ROI.
Whatever, not thinking about selling or anything, I don't think the value of company changed one bit. Obviously optional value/chance of stock buybacks dropped, but didn't except much anyway. I think I would currently think about selling at 3+, but dunno what will happen in future. Time flies with AYSI :)
The timing is shocking. So many companies hoarding cash and trying to remain solvent...They burn cash by paying themselves for their own IP!
Curious to hear how you feel about this transaction.
I have owned shares for several years and sold those today.
This is the second shabby and large related party transaction.
Is the price paid fair? I don't think so. Buying back shares seems a way better way to deploy the capital.
After the Matrix transaction I requested the "independent" fair value assessment. They were not willing to share it. Also, gross margin didn't improve (it even detoriated) while it should have improved significantly due to the Matrix deal.
Not sure what to think to be honest... I see both positives and negatives. Obvious negative is the reduction in the net cash cushion by ~$10 million USD...
The purchase price is roughly 7x the trailing earnings stream associated with the royalty, which seems like a reasonable multiple for a lower volatility earnings stream, given that its tied to revenue vs earnings.
Certainly further improves the cash flow generating ability of the company going forward and is a much friendlier situation for a potential buyer to have the IP owned and in-house if the Kostecki's decide to sell.
Its hard to make evaluations in this environment. If this transaction happened 2 months ago, I would have thought it was a great idea. In today's environment, its harder to say.
Correction: the hit to cash is only $6M (US); the balance is new debt....
Thanks for the numbers. Seems like a positive move then if it'll add that much in EPS.
Agree that nothing matters in this market carnage. So many stocks across the board have been thrown away. Hoping things at least start to stabilize in April.
So I just crunched the numbers and it looks like AYSI would have earned an additional $.07 in EPS in 2019 if this deal was retroactively applied. Of course their cash horde takes a $10M (US) hit, so that's the downside...
Not that anybody is going to care about these calculations in the current market meltdown!
Any thoughts on this news? Seems like a good move, although the price looks a bit steep. Maybe a sweetheart deal? If AYSI was licensing the IP, should at least save the company some money going forward.
Alloy Steel International Inc. Announces Acquisition of Core Intellectual Property
PR NEWSWIRE 10:30 AM ET 3/23/2020
PERTH, Australia , March 23, 2020 /PRNewswire/ -- Alloy Steel International, Inc.(AYSI) (OTC-US: AYSI) announced today the acquisition of core intellectual property utilized by AYSI in its production of key products.
AYSI Board Chairman, Alan Scott, stated that over recent years, the AYSI Board has pursued within its group of companies complementary strategies of business expansion and consolidating all of the assets and activities that it considered to be core holdings or functions.
While AYSI's work to expand the product types and product specifications it offers continues and is supported by its internal R&D efforts, ownership of the core intellectual property for its primary Arcoplate product has resided with the Kostecki family from the time of AYSI's formation (the "Arcoplate IP").
For some years the Board has considered the acquisition of the Arcoplate IP if it would prove potentially beneficial to shareholder value moving forward. AYSI has accumulated cash for several years with this objective in mind.
Recently, the Board established an Independent Select Committee ("ISC") that is not affiliated with the Kostecki family or the entity that owns the Arcoplate IP ("Seller"). Thereafter, the ISC commissioned an estimate of the range of fair market value of the Arcoplate IP and recently negotiated a purchase price of AUD$17.8m with the Seller. The terms of payment include a cash element of AUD$10.4m due upon the signing of the definitive purchase agreement and AUD$7.4m due in instalments pursuant to a promissory note. The note will be repaid in monthly payments of principal plus accrued interest over 5 years. The notes carry an interest rate of 400 basis points over cash rate of interest announced from time to time by the Reserve Bank of Australia. The price and terms fell within the advised fair market value range.
The acquisition of the Arcoplate IP effectively completes AYSI's core asset consolidation strategy allowing it to focus even more strongly on new product development activities and further supply rationalisation activities.
About Alloy Steel
Alloy Steel manufactures and distributes Arcoplate, a technically superior and market leading 'alloy overlay' wear plate, servicing the global marketplace from its modern manufacturing facilities in Perth, Australia. Arcoplate is used throughout the mining and materials processing industries, from opportunistic one-off specialty applications in small companies to large relationship based repeat business applications with leading international companies.
Arcoplate provides users with superior wear protection due to its premium alloy mix, its high ratio of carbide rich alloy and its unique manner of manufacture. The product's technical superiority combined with its unbeatable 'whole-of-life' cost has resulted in Arcoplate's wide acceptance in the mining and mineral processing industries to reduce wear in a host of fixed plant and mobile equipment applications.
In mining and materials processing industries, where premature equipment wear is the primary cause of downtime, to undertake repairs or refurbishment, Arcoplate can provide users with significant profit improvement. Arcoplate can substantially lower equipment downtime, resulting in higher production, whilst also lowering the overall cost of wear protection.
Furthermore, in applications where material 'hang-up' or 'carry-back' are also a significant cause of lost production, such as sticky materials that do not discharge freely from truck trays, buckets and chutes, Arcoplate's unique characteristic of polishing to a very low friction factor has the potential to virtually eliminate these problems, whilst simultaneously providing enhanced equipment wear life.
FOR FURTHER INFORMATION
Thushara Sam Dahanayake
Company Secretary
samd@alloysteel.net
+61-8-9248 3188
Cision View original content:http://www.prnewswire.com/news-releases/alloy-steel-international-inc-announces-acquisition-of-core-intellectual-property-301028285.html
SOURCE Alloy Steel International, Inc.(AYSI)
Swick, nice catch
Seems like these guys are firing on all cylinders. Markets are going through crazy times, however. The CEO should use that cash and keep buying back tons of stock. This valuation is a joke. Since the mom owns 65% of the company already, they might as well just buy the remaining 35% with the cash they have in the bank. They could probably offer us at least 3-$3.50.
Alloy’s LinkedIn feed has suddenly become active, with the latest update of a “smart” wear plate with an imbedded chip... interesting...
Alloy Steel International is taking its Wear Liners to the next level and developing a Smart Wear Liner. Smart Wear Liners are equipped with compact well protected and powered for life microchip which monitors liner condition and communicates the information through encrypted wireless data channel via web based application right to desktop or smartphone. Compact size of the electronics does not compromise a hard face thickness of the liner. Virtually any grade of currently manufacturing by ASI liners (alloy, ceramics, cast…) can be equipped with the chip and be ‘smart’. New generation of wireless gateways allows to cover large, metal intense mining production areas quick and reliably.
It’s the change in GAAP to account for leases as both an asset and a liability. Tends to just confuse. Companies now have to report the value of the operating leases on their balance sheet as a liability, as well as an offsetting asset, which in AYSI’s case, they’ve termed a “right of use” asset.
what is right of use asset?
AYSI - another solid quarter for Alloy, revenue up 9% and EPS of $.09 per share. Cash up to $15 million, or $0.94 per share. Trading at roughly 2x P/E excluding cash...
Finished goods inventory level points to another good quarter coming up.
Thanks for all your work on the iBox, Swick!
iBox updated with the latest financial information for fiscal year 2019 as well as my valuation sensitivity table. I still think this is worth $3.00+...
Amazing! On a day the market tanks, we make a new high.
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Overview
Alloy Steel manufactures and distributes Arcoplate, a technically superior and market leading 'alloy overlay' wear plate, servicing the global marketplace from its modern manufacturing facilities in Perth, Australia. Arcoplate is used throughout the mining and materials processing industries, from opportunistic one-off specialty applications in small companies to large relationship based repeat business applications with leading international companies.
Arcoplate provides users with superior wear protection due to its premium alloy mix, its high ratio of carbide rich alloy and its unique manner of manufacture. The product's technical superiority combined with its unbeatable 'whole-of-life' cost has resulted in Arcoplate's wide acceptance in the mining and mineral processing industries to reduce wear in a host of fixed plant and mobile equipment applications.
In mining and materials processing industries, where premature equipment wear is the primary cause of downtime, to undertake repairs or refurbishment, Arcoplate can provide users with significant profit improvement. Arcoplate can substantially lower equipment downtime, resulting in higher production, whilst also lowering the overall cost of wear protection.
Furthermore, in applications where material 'hang-up' or 'carry-back' are also a significant cause of lost production, such as sticky materials that do not discharge freely from truck trays, buckets and chutes, Arcoplate's unique characteristic of polishing to a very low friction factor has the potential to virtually eliminate these problems, whilst simultaneously providing enhanced equipment wear life.
Websites
http://www.alloysteel.net
http://www.sprintcutting.com.au/
Product Pictures & Videos
Arcoplate Pictures
Arcoplate YouTube Videos
Arcoplate Presentation
Contact Information
Production facilities are located in Western Australia ('WA' for short), with company headquarters at Address:
93 Mogul Road
Malaga Perth WA Australia 6090
Telephone:
+61 8 92483188
Facsimile:
+61 8 92483166
Share Count Data
Maria Kostecki 10,345,000 65%
As of June 30, 2020, AYSI had a total of 15,902,597 shares of common stock outstanding.
The share count has been steady since going public, with a 1,139,403 share repurchase on June 27, 2019 at $1.30 per share. There are no options or warrants outstanding.
Patents
Here are some links to patent applications to give some detail addressing how the manufacturing process addresses some problems with traditional overlay and how Arcoplate production looks to address and help resolve some of these problems:
http://www.google.com/patents?id=yCEdAAAAEBAJ&printsec=abstract&zoom=4&dq=Gene+kostecki
http://www.google.com/patents?id=PRoUAAAAEBAJ&printsec=abstract&zoom=4&dq=Gene+kostecki
http://www.google.com/patents?id=u903AAAAEBAJ&printsec=abstract&zoom=4&dq=Gene+kostecki
Financial Information
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