Alloy Steel Inc. (fka AYSI)

[natstocks]

I added to my position today at $1.77. I am deeply optimistic about the company's mid to long-term future. What will earnings be like this quarter? I don't know. Just a guess: 2-3 cents less than last year.

AYSI is really good at what they do -- how else can you explain their results and margins? There is now legit reason to factor buyout potential into price (some realistic probability). They have the new 4-foot plates (years in the making) just coming out. I could tell that the company itself views the 4-foot plates as very exciting. (Why? Beats me - I'm not a mining equipment expert.)

And yes even after a 100% run-up over the past few months, AYSI is trading for only 5.5X earnings.

Indonesia, BUYOUT POTENTIAL, cheap as hell P/E ratio, terrific and steady book value growth, price currently still close to book, new technology, I'm sure I'm forgetting a couple things...

Today I affirmed my belief that I can achieve outstanding returns by buying AYSI at $1.77, more than twice what I paid only a few months ago. I believe the company is still too cheap.