Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Just a thought from a long time shareholder... I believe that if the company were to initiate a quarterly dividend of one cent (1), that over a short period of time this stock would double. I believe that the company can afford this dividend policy. It has the cash to do so. In the end, the closely held shares by the family would appreciate much much more than the distribution of the cash. I would hope that management might check this website on occasion and consider this suggestion. Any other opinions are welcome.
Mikey
I see signs of life. Some nice size bids showing up.
I like what I'm seeing. Strong bid @ $1.15, last $1.20. China upping iron demand. Hopefully the volume seller has finished.
Mikey
New quarterly report out this a.m.. Unfortunately, my computer cannot open it. As the market has opened, I suspect many cannot open the file. There is NO activity.Feb.12, 2016.
Real quiet here. Next report due any day now.
Happy New year to all on board.
Good for you picking up the cheap shares. I missed the drop. I suspect this was a panic sale based on BHP having its current issues.
Today I added to my position at $1.48. I think thats a good price on the pullback from the $1.60's. I have been in this stock for a long time and am a believer in the long-term value of this company.
Mikey
I like the way things are shaping up with the company. The last two press releases were open and available through my several brokerage accounts. I never liked the process of going through third party sites to see their earnings. When they return to Nasdaq listing and are totally open with their news, they can return to the races (in all respects) . I think they are putting their house in order for a sale.
Mikey
Fabulous report. I just wish they could make their news reporting easier to access. Few see this wonderful report.
Go to www.alloysteel.com
It is user friendly. You can ask all your questions and they will be answered.
Ditto Mikey
At 8:30 a.m. today, it showed up on my Yahoo finance page. I list my portfolio and anything that pertains to the portfolio shows up.. They certainly don't make putting out news easy (even the good news). It did not show up on the Arcoplate website.
Out today.
Alloy Steel International Advises Release Of 2014 Annual Financial Statements at PR Newswire Fri 8:30amPERTH, Australia, Dec. 19, 2014 /PRNewswire/ -- Alloy Steel International, Inc. (AYSI) advises that its 2014 Annual Financial Statements are now available on www.otcmarkets.com website by searching for AYSI then choosing "Filings and Disclosure."
Today Alloy released an Arcoplate wear test for a Nevada mine site. I am on the company email list. Sorry, I can't copy and paste as it has many photos and copy. It was a comprehensive and informative report. Once again, their P.R. doesn't put it "out there". Are you guys signed up for the company website emails?
P.S. Thanks to both of you for your comments on this board. There aren't many of us that follow this company.. One day, we will all be rewarded. I am sure of this.
This just came out this morning.
Recommended for you:
-
Nat Hunt, Nat Hunt on Twitter (63 clicks)
Nano-cap, micro-cap, deep value
Profile| Send Message|
Follow (112 followers)
Alloy Steel International: Weak Hands Sell The Headline To Their Detriment
Sep. 8, 2014 11:17 AM ET | About: Alloy Steel International, Inc. (AYSI)
Disclosure: The author is long AYSI. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.
Summary
AYSI Q3 earnings of 2.2 cents/share disappointed investors recently.
The stock is currently down 27% from its pre-earnings price of $1.77.
By normalizing the tax rate and excluding the effects of currency hedging, I show how the quarter was better than its headline.
I believe that the 27% sell-off in the wake of these earnings has re-presented a very attractive entry point into a company with substantial upside.
On Tuesday, September 2, Australian wearplate maker Alloy Steel International (OTCPK:AYSI) released fiscal Q3 earnings that disappointed investors. The stock sold off to an absurd degree, falling from $1.77 to $1.05 before rallying back to $1.30.
Make no mistake: the headline earnings number was disappointing. But as I looked further into the information released by the company, I saw that the quarter was not as bad as it seemed on the surface, for a number of different reasons which I will explain in this article.
For the quarter, AYSI earned 2.2 cents on $6.2M of sales vs. 14.8 cents on $9.3M a year ago.
Sales
AYSI had a very tough comparison this quarter. A year ago, they had one of their best quarters ever. As you can see from the chart, Q3 2013 was an outlier quarter. This year's sales were actually in line with average revenues over the past two years, excluding the year ago quarter.
AYSI Historical Sales - Quarterly
In their release, AYSI said the sales decline was "driven primarily by the drop off in mining activity". I honestly don't see much drop-off in this chart, again barring the one outlier quarter of $9M+. Maybe the effect of the mining downturn is merely to hold AYSI at $6M sales per quarter until things turn back up. If so, they're in good shape. They are profitable and debt-free and should outlast any cyclical downturn.
Earnings
Going from 14.8 cents to 2.2 cents in earnings sounds awful, but for many reasons it is not that bad.
Alloy Steel gave three reasons for the poorer quarter:
"The drop off in mining activity..."
"A 14% decline in gross margin resulting from the recognition in the current quarter of volume rebates prospectively payable..."
"A swing from exchange profits to losses equivalent to 5.4¢ per share..."
Reason #1, the drop off in mining activity, is a negative, for sure. For reasons stated above, I am not sure quite how much it impacted AYSI, at least on the top-line number. I do believe AYSI will remain profitable throughout this downturn, and that it will survive and thrive on the other side. Of course, I am not a mining expert, but that is just how I see things from a financial standpoint. Alloy Steel, with a market cap of $22.6M, has $5.9M of cash on the balance sheet and no debt.
Reason #2, the volume rebates, is hard to get a handle on. Last quarter, we saw the company retroactively apply these rebates to the prior year's results, resulting in 2013 earnings dropping from 32 cents to 28 cents. Yet apparently they were not present in last quarter's earnings themselves, because AYSI posted a 60% gross margin. At this point my best guess is that these volume rebates will apply sporadically quarter to quarter, and will make the gross margin very choppy.
AYSI's quarterly earnings are typically choppy:
AYSI Historical Earnings - Quarterly
Finally, Reason #3 states that foreign exchange swings caused a 5.4 cent difference in year over year quarterly results. That is a huge amount. In the recent quarter, AYSI lost 1.1 cents per share on this hedging mechanism. If we add that back into results we get a new "normalized" EPS of 3.3 cents. Likewise, the standout quarter a year ago would need to be lessened by 4.3 cents per share (of foreign exchange gains), bringing its EPS to 10.5 cents.
It is worth noting that these foreign exchange swings are typically negated on the balance sheet via the Accumulated Other Comprehensive Income line. That is why AYSI's book value grows more steadily than its earnings. In fact, AYSI grew its book value by 3.6% from April 1 to June 30, which equates to a 15% annualized rate. (Not bad for a "disaster" quarter.)
One final factor negatively impacting results, which the company did not mention, is that they paid a 55% tax rate this quarter. This must be an anomaly, and if we were to change that rate to a more typical 32%, then we can add another 1.0 cent per share to this quarter's earnings, which brings our new adjusted EPS to 4.3 cents per share.
Simply by adjusting the tax rate and the forex hedge, we have doubled earnings and gotten a more accurate and positive picture of operations. So maybe the market over-reacted just a tad bit? At the current price of $1.30, AYSI is selling below book value ($1.42) for the first time in a couple months, and at 6X TTM earnings of 21 cents/share.
OTC Markets
One last interesting update is that Alloy Steel filed their earnings at the OTCMarkets site for the first time. For years, they have been posting results only on their corporate website. They simultaneously filed past reports with OTCMarkets, and as a result have become "current" with the site. Their Stop sign was replaced with a Yield sign - signaling less risk to investors. I don't know why management all of a sudden wants to get legit with OTCMarkets, but I'd say it's a small positive sign.
Mikey
I HAVE BEEN IN THIS STOCK FOR MANY YEARS. MY GUT TELLS ME THAT THE "OLD BAG HOLDERS" ARE PRACTICALLY DONE...SOLD AND GONE. TODAY IS A NEW BALLGAME. AND TO SPECULATE THE 2'S,3'S, IS BEING SHORT SIGHTED. THEY CAN TAKE THIS STOCK WHEREVER THEY WANT TO AND I BELIEVE THAT THE SMART MONEY HAS BEEN ACCUMULATING FOR A WHILE. I THINK THEIR SOCIAL MEDIA PROGRAM WILL HAVE POSITIVE BENEFITS AND TO BE SUSPICIOUS OF THEIR MOTIVES IS SHORT SIGHTED. MANY OF US HAVE BEEN IN THIS STOCK FOR SOOO LONG, WE CAN'T SEE ANY KIND OF BIG MOVES AHEAD. ALLOY IS THE LEADER IN THEIR FIELD AND THEY HAVE THE ACCOUNTS TO BACK IT. SHOW A LITTLE PATIENCE. THE RIDE IS ABOUT TO BEGIN. I HAVE BEEN INVESTING FOR OVER 50 YEARS. OPPORTUNITIES LIKE THIS COME ABOUT RARELY. ALL THIS IS JUST MY OWN OPINION. GOOD LUCK TO ALL OF US.
MIKEY
I wasn't aware that the grandson was the race driver. Thanks for the info. GO Grandson! Burn rubber for good old Arcoplate!
I commented on the website and asked the question,"If he is driving full time, who is running the company?". Haven't received an answer. Still, having this new addition can only open the company's products and services to the outside world.
Young Kostecki is moving ahead with the company. They have set up a social media page (enclosed)You can now sign up for their newsletter at www.alloysteel.net
Now we can be like one big family. Wonder how Gene would respond to this modern day technology?
Arcoplate Is Going Social!
Expanding Across Social Platforms
Arcoplate is increasing it's brand awareness and providing it's customers with an increased web presence. By expanding our social media presence on platforms including Facebook, Twitter, LinkedIn, and more, Arcoplate aims to provide a greater ease of accessibility.
Get Involved in The Conversation
With an increased web presence, Arcoplate makes it easier than ever to start a conversation. Like us on Facebook, Follow us on Twitter, or Connect with us on LinkedIn. We would love the support!
Please join us in our social media conversations and engage with others in similar industries to stay up-to-date on the latest Arcoplate news and headlines.
Testimonials
Has Arcoplate benefitted your business? Tell us how; we love customer feedback.
Dr. Wear
Are you using Arcoplate or have questions/concerns? Ask Dr. Wear
Other Social Media
Check out: Facebook, Twitter, Google Plus, LinkedIn, and
Not me. Hope it is a newbie picking it up for a fund.
Thanks for the link. It's the first look as what was a rumor for the longest time. Delighted to see that it is REAL. It looks like we still have old stock overhang in the market. This will disappear when we relist and continue to maintain dialog with shareholders. I'm very bullish on the long term.
Mikey
I think all of you guys have it right. The fact is this stock can go anywhere. I am waiting for them to relist the company stock on Nasdaq. Once that happens, prices not discussed on this board will be achievable. What we have here is a unique company with a service and product that is the premier product for the industry and they have the patents to back it up.
Mikey
What I loved most about this report is that the WINDOW is finally opening and I love what I am seeing. Who knew about the prior overtures by other companies? I am excited about the new product coming to market. Perhaps now we will see some outside money making itself available to complete the Indonesia project.
Mikey
PR Newswire Comtex News Network < Back to Market News
Related Quotes
Sym. Price Chg.
AYSI Trade
News 0.86 0
Death Of Alloy Steel Founder Gene Kostecki
May 19, 2014 09:32:00 (ET)
PERTH, Australia, May 19, 2014 /PRNewswire/ -- Alloy Steel International, Inc. (OTC: AYSI) announced today the recent passing of Mr. Gene Kostecki, Alloy Steel's founder and, until July last year, its CEO and Technical Director. Alan Scott, Alloy Steel's Chairman of the Board of Directors, stated, "It is with considerable regret we announce Mr. Kostecki's passing. Gene died peacefully in hospital from complications which set in following a severe bout of pneumonia. He will be sadly missed, but fondly remembered, by all at Alloy Steel. Looking forward, the Company is fortunate to have Gene's sons, Steven and Andrew Kostecki, respectively heading up its operational/technical development activities in Australia and our marketing/brand recognition efforts in North America."
About Alloy Steel International, Inc.
Alloy Steel International manufactures and distributes Arcoplate, a market leading wear-resistant alloy overlay wear plate. In mining processing industries, wear is the primary cause of down time, the period of time where machinery is not in operation because of the necessity of repairs or refurbishment. The Arcoplate product line substantially lowers down time, carry-back and the resulting lost production. Arcoplate is widely accepted in the mining and mineral processing industries to protect a host of fixed plant and mobile equipment applications. Alloy Steel International boasts major mining companies as its clients and services the global market place from its Australian manufacturing facilities.
SOURCE Alloy Steel International, Inc.
/CONTACT: Sam Dahanayake, Company Secretary, +61-8-9248 3188
At this level, I have resumed picking up stock. Today, I added at 80 cents and 78 cents. I continue to believe that the basic philosophy of management is changing for the better. I also believe that Gene is still on the offering side as he has so much to play with. The long term direction of this stock is UP in my opinion only.
I never said he was about to give up control. This is his golden goose. He makes out anyway you look at it. You buy a chunk. You sell a chunk. He is like a market maker and the house always wins. When he gets bored, he throws a few bucks to junior for his toy car. I don't think Gene ever had delusions of becoming a large cap Nasdaq stock. He can sell anytime as much as he wants when he releases some good news and step in any time the news is poor and pick off all blocks that come for sale as no one else steps up because he has control.
Just my own personal opinion. I am long a large number of shares and wish this was a better more liquid situation. I will wait to see where this goes and pick up shares on pullbacks.
Gene should not give up his day job, because as a stock trader, he is an amateur. No sooner does the stock downtick, than he whips out 40-50 thousand and places it on the offer.
Great report Dave. Thank you for working so hard in our behalf.
Quiet little games going on . Couldn't believe there was 91,000 shares offered at .70. This was quickly undercut by a MM to .6988. Either Gene is making his own market or Woodhouse has even more stock. Hard to believe that Gene would have done such a large stock package for Woodhouse. I just think this is Gens's little game and he has so much time on his hands and soooo much stock.
Just one man's opinion.
"wishing one well in his new endeavors" is corporates kind way of saying "close the friggin door behind you as you leave".
Thanks for reaching out to the company and making the contact with Sam D. Hope he is real and treats us as stockholders should be treated. If he does, it can only benefit Gene and the stock price.
I truly believe that this morning's trade was the completion of Mr. Woodhouse. This is their pattern. The speculator in me says it's o.k. to bid for the stock here. I just can't get a grip on what is in Gene's head going forward. I think if I live long enough, I will be rewarded. 50-50% chance of getting screwed too.
I am sure that the selling was Mr. Woodhouse leaving the building and taking whatever price he could get. So sad how they burn through any person that opposes them.
Many thanks to all of the posters on this board. When I see these posts, I feel that there is a degree of hope out there.
Can anyone remember when was the last time the bid was for 110,000 and the offer was for 100,000? I would bet our chairman makes his own market.
I appreciate your position however, ask yourself this question: He already controls over 75% (my Guess) of the outstanding shares. Why would he need to buy any here? His arrangement with the company for "Royalties" bleeds the company dry. If that arrangement were cancelled, we would not require the financing to build the new plant. It could be done with the internal funds. Right now, this is his own private poker game . He occupies all the seats at the table and is the dealer.
Would anyone out there care to venture a guess as to "who" or "whom" is selling these large blocks today. I would venture to guess that the name of the seller begins with GENE. This person is without shame. He treats this company as his own plaything. How sad!
The fact is that Gene Kostecki cannot accept the fact that he is growing old and at some point MUST relinquish some control to younger, qualified people. I suspect that if Warren Buffet were the CEO, he too, would jump ship as I suspect working for Gene is like working for Hitler. As shareholders, we all get screwed!
Picked up additional stock this a.m. on an old open order. I am amazed but not surprised at the games market makers play with small lots. You would think the company was going out of business the way it trades. I am in this for the long haul and truly believe we will all be rewarded.
I pray you are correct. I have a lot riding on this company.