Replies to post #5878 on Alloy Steel Inc. (fka AYSI)

[DaveinHackensack]

That investment thesis remains intact, though the stock may drop in the short term based on the news the company is delisting to the Pinks. As I wrote in that article,

"My general idea regarding small growth companies is that if I can buy shares at a single digit multiple to a conservative estimate of what the company will earn next year, that’s probably a good deal."

I still think ~17 cents is a conservative estimate of the company's fiscal '11 earnings, and at today's closing price it was trading at less than 5x my forward estimate.

I'll wait to see what the stock does from here and will probably add more on a dip.