Alloy Steel Inc. (fka AYSI)

[KlausVT]

DH -

I agree with you on the possibility of turn-over of finished goods. I just wonder whether the strong increase of raw materials is due to an existing or anticipated order for next quarter or trying to take advantage of lower material costs due to the downturn in the industry and anticipation of a subsequent recovery of raw material prices (otherwise the "dead" capital and associated losses would not make sense).

I like to think that the anticipation of orders (or existing orders) is the prevailing reasons referring to the 10K where the following statement was made:
<<Future cash flows from sales are anticipated to be sufficient to sustain the Company's operations.>>