AYSI - As a holder of AYSI for far too long... things certainly do look up for the company. Goldman a few days ago put out some research suggesting the potential start of a new commodities super-cycle... BHP, Vale, Fortescue, the Australian dollar are all surging and hitting multi-year highs... The new administration will likely push for more stimulus, pushing demand for steel, iron ore, and in turn wear plate for maintenance and new mines / equipment to handle the higher demand.
For their part, AYSI appears to be more active, both in terms of filing timeliness and communication / marketing on their new website and social media platforms (i.e. LinkedIn). I liked the disclosure in the latest annual report that they stopped paying for the racing team. In my dream scenario this points to some larger strategy that could result in an uplisting / relisting to Australia / or even a sale. Granted, this is wishful thinking, but for the first time in a while, I feel things appear to be moving in the right direction for AYSI.
The valuation is a pittance... The company trades at roughly 2x EBITDA, when most in this space trade at 6x+. Bisalloy, the most directly comparable company is valued at 6.2x with roughly the same amount of EBITDA. That would equate to a roughly $4.00 share price for AYSI. I think 2021 will be a strong year from a growth and earnings perspective and I can realistically see growth of 25%+ for the year on the top-line.
On their LinkedIn page. Retweet of a post from a partner, sounds promising:
BHP has adopted Segnut for use on the refurbishment of the Car Dumper #4 at its Port Operations in the Pilbara. Alloy Steel International Pty Ltd is undertaking major works on the project and is using Segnut to secure the wear liners on the equipment, greatly improving the maintainability and safety of the facility.
