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E-Mailed to www.alloysteel.net
Dear Mr.Barry Woodhouse,Chief Financial Officer:
Please be aware of the exemption clause for your sized company under Secion 404(b) recently passed and adopted by US accounting audit firms. This exemption should ease your company’s concern of compliance fees under the Sarbane-Oxley and I hope AYSI maintains its accounting standard under your fair and careful watch.
Sincerely Yours,
KK/Investor
Reference:
“…On June 16, 2010, the conference committee reconciling the House and Senate versions of the federal financial reform bill agreed to include in the final reform legislation the House provision that provides an exemption on compliance with Sarbanes-Oxley Act (SOX) Section 404(b) for companies with less than $75 million in market capitalization…..”
“I just attended a nano-cap company annual meeting and learned about the exemption rule approved recently. ” The exemption spares our company from a huge compliance fees,” according to the CFO on INMG.OB. Its accounting firm is Gruber & Company, LLC which specializes in PK and OB stocks”
http://www.gruberauditfirm.com/clientlis...
Just back from the 2010 annual meeting,All lights are green! All the efforts made since 2008 are working and should contribute to the top and bottom line for years to come. INMG have had 7 consecutive profitability,excluding USDA write-off in 4Q 2009,and the odds of a another profitable Q is almost certain!
www.alloysteel.net apparently is not working. Is this temporary or part of form 15 blackout?
From Wall Street Journal:
"Cotton climbs 140 year high...Cotton prices touched their highest level since Reconstruction on Friday, as a string of bad harvests and demand from China spark worries of a global shortfall......"
Share price of aysi.PK has had NO CORRELATION(BIG FAT 0) to record breaking commodity prices,a BIG MISCALCULATION by the LONG,.................ALL or nothing??
Australia’s Currency Hits Dollar Parity, First Since 1983 Float
" Oct. 16 (Bloomberg) -- Australia’s currency reached parity with the U.S. dollar for the first time since exchange controls ended in 1983 as the biggest mining boom in a century and U.S. stimulus prospects spurred demand for the nation’s assets..."
What does it means to America??
Stock up hard goods before the price go through the roof! 90% of our population is moving to the poor house fast!! You thought Gene was cruel....we ain't see nothing yet!!
From shoes to boots:
"Welcome cowboy!"
At the 2008 annual meeting,I mentioned to the management that the company was worth $10 million to me. Since then,the fundamental has improved in all fronts.....I believe the risk of being GORED BIG TIME is practically zero.....and I'm glad to see your numbers are topping mine!
Q: Does management care what the stock price is? If they do, why do they behave as if they don’t? If they don’t, why do they incur the considerable expense and management time associated with a public listing?
A: The company does care about the share price and is disappointed to see it so low. See the related comment below in relation to funding growth and review of strategy.
Conclusion:
I'm already sick to my stomach and I'll spare you on this one!
More from Steamcatapult Q/A:
http://steamcatapult.com/2010/08/31/answers-from-alloy-steel/
Q: Why the departures of former CFO Alan Windus and director Alvin Tan (after one quarter, in his case)?
A: At this stage in the company’s growth, Alloy Steel needs a full time CFO and is reviewing its personnel requirements for its growth. Alan Windus was a part-time CFO. Barry Woodhouse is a full time CFO, which is the main reason he has replaced Alan Windus. Alvin Tan was a board nominee of Alan’s and the company elected to go with a clean slate.
The company is currently in the process of adding appropriately experienced board members (including an independent chairman) who have experience in the management of growing industrial companies, and have industry connections that will enable them to make introductions for the company that can lead to new client relationships.
Conclusion and why 66% chance of BK:
Gene crossed the line: talking about independent representation from him and under the table he has the company under his TOTAL CONTROL! He is SELFISH and his behavior is SELF-DESTRUCTIVE....he is clueless of how little credibility he has left with the shareholders,if any,and if he ever cared!!!!! Alan Windus and Alvi Tan left because the "HOLE" is so big and there is NO REWARD for lying,and the smart thing to do is to BAILOUT!! When insiders bailout,leaving behind a selfish CEO controlling everything.......AYSI is a different ball of wax!!
“Answers from Alloy Steel” Q/A in SteamCatapult by Dave
http://steamcatapult.com/2010/08/31/answ...
Excerpt(given 8 weeks before implosion) :
Q: Shareholder communication has been rough, at a minimum, over the past several years. Has any serious consideration been given to hiring a respectable investor relations firm to handle press releases and shareholder communication? It would at a minimum help return some confidence to shareholders and allow company executives more time to focus on what they do best, which is of course to run the company.
A: The company is reviewing the issue of shareholder communication broadly, and plans changes to increase communications in the future, including a revamp of the company’s website within the next few months.
Blood thirty scavenger's conclusion:
Gene lost control of the production process and had to pulled a Form 15 fast,to blackout communication completely,and what he had said before was for the birds! He does not want you longs to know the size of the "materiel effect" on the balance sheet!!Even he was blinded with his own carelessness...I believe "field tested and qualified" of the new Acroplated was skipped under his direction....talks(PR) does not work in the long term without fundamentals.......... a likely "BIG RETURN" from miners,I believe it has a 66% chance to BK the company.....I'm about really to PLAY this wounded prey!!
"love is in the eye of the beholder" until he is out of $$$ and she doesn't even knew his name!
A bit more disclosure-
Near sight: I'm guessing just like everyone else. My time horizon is 2 years minimum with money that I don't need right away.
It would of been simple had we trusted the management! It is obvious we don't. But mine "BIG HEAD" tells me the chance that he is a crook is less than 10%;and my buying rules tells me to wait when MC<$5.00 million. I may missed out on this AYSI-once-every-two-year-roller-coaster-ride OT THE HELL,but everything I do is calculated,mechanical,and boring..........but mine action of being GORED BIG TIME is practically NONE!!
I smell blood and I love rare!!
Note: $0.30 pps with 10 bagger upside and 33% odds of AYSI making it back is almost as good as my flagship stock!
To make it simple: I rather pay $0.65 pps with bad known knowns than $0.40 pps with unknown unknowns plus blackout for 90+ days! Priced below $1.00 is cheap,the million dollar question: Can this "known unknown hole",known to the management and unknown to the shareholder,breaks the camel's back?? From 15 is a "BIG STRAW!"
Dear Sam:
Trust is earned and because of lack of it: I had a bailout trigger of MC>$30.0 millions in place since 2008. I had no regret when I sold my shares at $1.65 and missed out the party at $3.00+! Over the years,I have learned: I'm my own worst enemy without strict a "sell rule"; and the rule must be followed because I'm like everybody else,love to drink more from the punch bow as the party gets hotter! I rather be a party pooper....and be the first seller thus minimize my HIGH RISK OF EXPOSURE ....my automatic "sell rule"
,a bit mechanical,overrides my "little head" every time...this is why my "GREED" is under control and haven't being GORED BIG TIME lately!
On a serious note:
I might have painted a more dire scenario than a likely outcome because I don't have enough data point! But,I'm certain this Form 15 had no support/consensus (2 key employees left!!) and had to be decided solely by one person. Event last week had to be triggered by quality issue,time line: 2-3 Q of product delivery and finally put on the field for use,and not meeting expectation......AYSI had difficulties making them,might this be why Gene's children is in charge of manufacturing.......keeping the problems low key and keep on pumping........I believe this must be the "hole" Gene is dealing with and needs time to dig out...don't be surprised:I may be the biggest proponent of AYSI shares,but not for at least 120 days,and at a CHEEEAAAAP pps!
Nightmare and risk associated with any manufacturer assuming management is straight:
Not delivering quality "operational-critical product!"
Popping out a high number of mills in such a rush to marketplace and plagued with technical challenges,and saw NO RISK?? Remember: AYSI increased the thickness by 4-5 folds only in the last year,relying on the company words,and saw NO production RISK?? AYSI has a limited customers,they are big and bought "operation-critical Acroplate",and you saw NO RISK of delivery of sub-standard product ????? I bet 75/25 Form 15 was triggered by quality issue and customers are .......I'm too scared too speculate.....may God has mercy on AYSI!
Question for AYSI senior management:
How did you reached the conclusion there was less than 300 shareholders on record? Who did the tally and he signed for it??.......
Going private,not likely;going dark,most likely. Why
http://webster.utahbar.org/barjournal/2007/04/going_dark_an_alternative_to_s.html
Note: built up toolbox for checking our "Pastor Gene" for likely tricks ahead! He just got a 90 day reprieve and what's his next move????
With MC<$5.0 million,nick picking is STUPID ................ and I would definitely consider buying AYSI very soon...but there are so many choices: ISDR.OB,INMG.OB,IAIC.OB,AMEH.OB;OB has a stricter compliance requirement than PK;Or OB gives more disclosure and less risk to your financial health!
Investment 101: more risks for higher returns;NOT more promises for NO returns.
Note: Pre-requisite to Investment 101: "BIG HEAD" over "little head" 5% of the times;Look yourself in the mirror everyday and be certain it is still you!! Greed and selfishness can change a person and look what happened to Gene!
Posted on Yahoo MSB 19-Aug-10 08:37 pm
http://messages.finance.yahoo.com/Stocks_%28A_to_Z%29/Stocks_I/threadview?m=tm&bn=75589&tid=405&mid=411&tof=6&rt=2&frt=2&off=1
"Dear B***4:
From risk aversion point of view,I rather see fundamental improvements,any time,regardless how incremental,over BIG PR: real or imaginary! Maybe also because 95% of self-issued PR by penny stock companies are unsubstantiated and BS .......... .........................With MC<$5.0 million,nick picking is STUPID.........;At MC>$30.0 million nick picking is SMART! Know where you are and not just know where you going!
With AYSI MC>$30.0 million,I had higher expectation but issues/uncertainty were never resolved
1 Additional mills because of explosive sales or obsolescence?
2 Why Gene's children in charge of manufacturing?
3 AYSI price bubble formed and collapsed time after time: Too many pumpers only see what they wanted to see,totally oblivious to unknown risk,and some one with deep pocket may also be play this stock to our detriment!
4 Company grew but the caliber of the management stayed stagnant I believe.
5 Last nail in the coffin:Creditability of Gene is challenged! What happened to the Mongolia Venture....2% royalty on patented plate or all sales????........Is this still a family business that he can do what ever he wants??
All these became BIG ISSUES as the MC>$30.0 million and forcing me out,over and over. Higher standard and critical thinking may limit your risk level and save your butte and hope you always remember it.
Note: We are our own worse enemy unless: park "little head" and drive with a "BIG HEAD!" .................................."
Added 10/1/2010:
"Pastor Gene" can never do wrong among our faithfuls.......What is logic and common sense???? I'm smart and I don't need none of that.......you are all "IDIOTS!!
Why form 15? I thought it was pretty obvious that Gene wants keep the lead on indefinitely and form 15 buys him time. Why in such a hurry and how big is the hole? And from what?? Instead of finding out the truth,I'm seeing implosion among the shareholders! Remember: Divide and conquer.He got off the hook easy again,again,and again. He is better and you can talk until the cows come home,and nothing is going to happen!! Same old same old.
This article was posted before the Form 15 on Yahoo MSB:
3 Sell Signs
By Rex Moore
December 29, 2006
Most loyal Fool readers know how we feel about selling. If you've found a great company with top-notch management and a strong competitive advantage, the best time to sell is almost never.
But that doesn't mean we hold on blindly. Things change, even with the greatest of companies. That's why we're constantly evaluating our stocks and watching for the danger signs that can torpedo our portfolios.
Today I'd like to share three rules for selling, as set forth by Fool co-founder Tom Gardner for his Motley Fool Stock Advisor members.
1. Selfish management
Tom calls this the "worst possible development" for any of his companies. If the executive team starts worrying more about lining its own pockets than creating value with the business, it's time to let go. For clues, keep an eye on excessive compensation, aggressive accounting, active insider selling, and declining market share. A classic example of this occurred at Royal Ahold (NYSE: AHO) a few years ago under a previous management team.
2. Competitive disadvantages
Competitive advantages lead businesses to high returns on capital and equity. They could result from many things -- for instance, Wal-Mart's superior distribution system or Intel's (Nasdaq: INTC) economies of scale. Though different in nature, these advantages all allow higher returns than most competitors. But if a company in your portfolio is facing weak pricing power, a declining customer base, and lower market share, it's likely operating at a competitive disadvantage. This is not to say that quality competitors such as Target (NYSE: TGT) and AMD (NYSE: AMD) can't make big gains; indeed each has done so. But Wal-Mart and Intel continue to benefit from these positives.
3. An unstable financial model
First, some positives examples: Think of Wrigley (NYSE: WWY) and Hershey (NYSE: HSY). They're known for stable or rising margins, tight control over working capital, steadily increasing sales, loads of cash from operations, and a huge surplus on the balance sheet. Companies that aren't following suit in two or more of these categories are showing us a big red flag.
What about valuation?
Obviously, a stock carrying a sky-high valuation is a candidate for selling. But this is the toughest call of all. If properly valuing a company is so easy, after all, everyone would be rich ... happily buying low and selling high. Even Tom has been burned in this area, selling Whole Foods Market a couple of years ago in Stock Advisor, only to watch it more than double in value afterward. (Whole Foods has since been restored to the ranks of Stock Advisor picks.) So tread carefully here; it takes a large number of accurate valuation-based sell calls to make up for just one missed multibagger.
But the three sell signs I've outlined above aren't too hard to spot. Tom and his brother, David, have employed accurate selling and buying guidelines on their way to outstanding performance in Stock Advisor -- 68% total average returns versus 29% for equal amounts invested in the S&P 500. You can get a look at their two picks for new money now, plus all their past recommendations, free of charge with a 30-day trial. There's no obligation to subscribe, and full access to the Stock Advisor service is just a click away.
This article was originally published April 12, 2006. It has been updated.
Dear BIG 10:
Good move! I believe AMEH near term potential is capped by challenges such as cost of services,SG&A,...... for some times in the future,including the quality of A/R even without a major austerity in the CA health care industry,which is also a BIG IF!
Is anyone surprised Gene is away and unavailable to answer shareholders concerns and questions? He got his routine down cold. Please see Dave's latest effort contacting the company and had spoken to the new CFO. Apparently the new CFO knew nothing and Dave effort was stone walled again. I'm just wondering does the CFO knew all the toxic around him and how long is he going to stick his head out for the king of "GREED and SELFISH!!"
Note: With the way things going,the new CFO might be the weakest link. Let him know there is a price to pay if fudiciary were broken under his watch!! Send you E-mails to him now for your sake........SOFTIES if not!!
In the past on a number of occasions,I sold before I bought more ....what I called a low frequency trading(LFT) play in an effort resetting the ask price to a lower level....I believe it is almost time to up-shift gear from a pseudo MM to a committed long term player! The upside potential no longer justifies a meager 25% trading gain!!
All lights are green for the next ER!
Dear 10:
From last Q: Gross margin was 26%,not 33% as I was hoping. It may not be a bad idea wait it out until gross margin improved back to 35%. If gross margin is caped below 33%,the business model is flawed. No economy of scale and more infusion of capital for future growth!
The 1Q is the toughest quarter and I was expecting NO INCOME. All numbers have improved and the company is gaining eps power!
Dear Ten:
Pick up some more shares at $0.1488 and $0.1688 recently. I believe all the strategic planning/execution of past years,are started materializing and monetizing at last. IMI never stood still and their ability to twist/turn/optimize with the budding and ever-changing pseudo-government-state meat/carbon/organic market place,have qualify them to be a most likely "TEN BAGGER!"
Dear 10:
Forgot to add: I think I know how to find a "winner",but I'm definitely unable creating one! May be that's why I love to learn the method of making a great product and so I'm able to appreciate it!
http://www.foodsafetynews.com/2010/02/na...
“…….Agriculture Secretary Tom Vilsack killed the $142 million National
Animal Identification System (NAIS), and any hope it might contribute
to food safety, last week…….. It will be replaced with the "Animal
Disease Tractability Framework." A fact sheet on the new program
published by the U.S. Department of Agriculture (USDA) says the new
program "only focuses on animal health and aims to assist USDA in
quickly finding out where diseased animals have been and what other
animals they might come into contact with. Animal disease tractability
isn't a food safety program."……………USDA's Animal and Plant Health
Inspection Service (APHIS) will be in charge of the new animal disease
tractability program with its responsibility ending at slaughter.
USDA's Food Safety and Inspection Service (FSIS) is supposed to be able
to trace processed meat back to its sources……..”
Uncle Sam is out,new business opportunities for IMI?
Got it.Thanks.
After reviewing recent filing,picked up a few thousand shares. The company just did a private placement of $1.25 million dollars,10% yield and with convertible feature starting at $0.0125 pps. The fundamental looks good;the shares count is less than 40 million diluted;everything else seems so so. I believe the top line for the current quarter would be a harbinger of the IPA for 2010 and beyond.The wild card: how much impact/difficulty would be effecting its collection/reimbursement by the state of CA which is in a fiscal crisis!
Sorry,I had just figured out that I had mail and finally read it. I always believed INMG future since 2008,and the dynamic of the verification has become more than interesting,saying the least.Bottom line:this is an investment grade stock and the window of opportunities are wide open for years to come!
I'm an open book and cheap,and not yet have the need to upgrade my free I_HUB account for its premium services.
Dear jelli:
Just saw ten as the Moderator of INMG!!
Dear Ten:
Welcome!Since you missed the meeting,it may not be a bad idea to request from Jay: "IMI Notes for Shareholders" passed out during the meeting. Jay had some concern about regulation FD?,and he is recently back and active again.If problem,John Saunder will help you out.
Dear jelli:
People pick stocks like ISDR/INMG/.. are a special breed or nuts,take your pick! Watching our stock price tanked is just part of a day's work! We picked fallen angels based on sound reasoning and bought the stock at calculated prices,typically way undervalued.We anticipate it will start budding and if not,it has the balance sheet to whether through trouble ahead. Remember we are investing in the "land of junk stocks",not "bluechip quality" stocks! I bought the stock with NO anticipation of "SMOOTH SAILING",100% boring,PR optional,and with a time horizon of 3+ years!
PR should not be a big factor,since regular filings are out every 3 months. The most important thing I care: company is disciplined financially and proven to be every Q. Also investor should keep on digging through other sources about the company's business,competitors sales,industry outlook,and more. Once you get a grip on the industry outlook: you may be the only one that can offer a "TRUE" valuation of the company! And in a position to make BIG BUY of a "gold mine" at a cheap,cheap,insultingly cheap prices!!
My INMG is about 2Q-3Q ahead of ISDR and I believe my grip on the US livestock verification industry is only next to the management,senior management that is!!
Dear Jelli:
Attended IMI annual meeting and again they were reserved: many exciting PRs could had been issued,but they were not!And this is how I like it.Why? A sign the management is communicating with shareholders through accomplishments and not PRs: PRs may not work well for penny stock,too much stigma!
If ISDR starts to provide regular PRs for sake of PR and no contents,it may be a sign for savvy investors to move on.
I just attended the Castle Rock annual meeting and the "vibs" among the management are full of energy and excited about business opportunities ahead,particularly an exciting 2010;head wind has dissipated and replacing by trade wind. All fundamental are improving: $250K cash;cost control/capped below $350K;..and most importantly,anticipated topline growth,projected back in 2008, are likely to be and soon!