Replies to post #6849 on Alloy Steel Inc. (fka AYSI)

[littlefish]

Hi Dave- Good luck with that.

All IMO-
Gene is not the first CEO to screw shareholders.

It is just point of view. Gene thinks shareholders (or potential ones, talking about the market) screw him by not recognizing the value of the company. Shareholders think Gene is screwing them because he does not show how much the company could be worth by loosening the grip on the family jewels.

So it ends up a draw where no one wins. Oh wait, except Gene/family is majority shareholder so he always wins in terms of if the business is successful he can do whatever he wants.

But he is basically the guy that created/engineered the company so... It is a bigtime value trap for regular investors like us IMO.

There is the real off chance something unexpected happens where Gene decides to not keep it a family majority held company (or maybe his son down the road?) and suddenly shareholders hit a bonanza with something like an outside buyer.

Otherwise IMO it is just that, a private company where profits are going to basically head toward the family and business first and after that, well there isn't really anything after that or so it has been it seems.


I feel bad for recommending this one years ago and through the years given the way things turned out but it happens with investing. I now put a fair amount more emphasis on avoiding share structures where one entity can majority hold shares no matter how good something looks.

Company is worth a ton more than the market cap but who knows if anything meaningful ever happens to realize any of the value.

All IMO. And again I think the company never should have been public the way it is being run.


Good luck all.

[ebase22]

So whats the plan dave?