posted
Alloy Steel is a little hidden gem that has low outstanding shares, increasing sales, high profit margin (53% as per its last quarterly report) low float, major insider ownership (insiders own 74% of shares outstanding with the CEO owning 62.5% of them) and most importantly it is profitable!! In my opinion with sales to pick up through its expansion into the US and other regions the company is undervalued and it is currently not followed and not known publically due to its quiet position……making it a hidden gem at this time.
The advantages of Arcoplate are spreading in the industry and the product is quickly making a name for itself due to its cost savings advantages to companies and its superiority over conventional wear plates.
Most of their sales have been as a result of word of mouth or repeat orders from past clients and now have appointed a major US distributor to help expand into the US market (http://www.wearplate.biz/ISS.asp). Its new plant/machinery should now be operational to meet future demand.
Overview (as quoted from the last 10QSB dated 16 Aug 04) We manufacture and distribute Arcoplate; a wear-resistant alloy overlay wear plate, through a patented production process. The patented process by which we manufacture Arcoplate enables us to smoothly and evenly apply overlay to a sheet of steel, creating a metallurgical bond between the alloy and the steel backing plate that is resistant to wear caused by impact and/or abrasion. We believe that, in the mining and mineral processing industries, wear is the primary cause of down time, the period when machinery is not in operation due to wear or malfunction. We believe that use of our Arcoplate product line will substantially lower down time and the resulting lost production of our customers and accordingly return a higher profit margin to the operation. We also intend to commercially develop the 3-D Pipefitting Cladder process; a computer driven and software based mechanical system for depositing a profiled layer of wear-resistant alloy onto interior surfaces of pipefittings, targeted for industrial use. With the increased demand for Arcoplate, management has taken the decision to concentrate all available resources to increase the production capacity of Arcoplate before continuing with the 3-D Pipe Cladder process.
It is nice to see that revenues jumped in the 4th Quarter to $1 million
With the new Arcoplate production machine now completed, they intend on completing the development of the 3D Pipefitting Cladder Process.
The additional machinery when completed and operational in January 2005 will supplement the existing production equipment. They believe that with the addition of new equipment, they will have the capacity to produce Arcoplate which will have a resale value of $10,000,000 to $12,500,000. This will be obtained by the utilization of both the new and present machines.
Accounts receivable was $ 454,305 at the end of 3rd quarter and now $ 818,864 at the end of 4th quarter......so once these accounts are received it should show up as realized revenue, most likely in 1st quarter 2005....nice to see accounts receivable almost double!
As of September 30, 2004, the Company had US net operating loss carryforwards of approximately $1,482,000 expiring through 2024.
Insider ownership......number of shares owned and percent of outstanding shares... Gene Kostecki 10,598,000 62.5% Alan C. Winduss 1,893,250 11.2% All officers and directors as a group (two persons) 12,491,250 74.0%
Posts: 433 | Registered: Jun 2004
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Read between the lines....caterpillar machines being showed at trade show with AYSI's wear plates! This is huge news.....imo!
Steel Participates at MINExpo International(R) Trade Show
PERTH, Australia, Jan. 19 /PRNewswire-FirstCall/ - AYSI:OTC - Alloy Steel International Inc together with North American distributor, Industry System Solutions (ISS) presented its wear-resistant Arcoplate at MINExpo International(R) 2004, held September 27 - 30, 2004, in Las Vegas, Nevada.
This exposition of the latest mining equipment, services and technology attracted 1,225 exhibitors and over 30,000 registrants and is the largest of its kind in the world.
Arcoplate, the company's premium wear resistant plate, was exhibited both at the ISS booth and at Caterpillar's popular Mine Site@Night display at Caesar's Palace where Arcoplate was prominently fixed to the blade of a Cat(R) D11 production bulldozer. Mr. Charles Purcell, Vice President of marketing for ISS, commented "We have the best wear plate in the market. It must be good, because we put it on Caterpillar machines".
About Industry Systems Solutions
Combined with the distribution and logistical expertise of parent companies, G&D transportation, CDO Distribution and Specialized Process Services, ISS offers a variety of wear-system solutions for industry. ISS is located in Morton, Illinois and is the Master Distributor for Arcoplate in North America. A technical summary can be viewed at http://www.wearplate.biz/ISS-Technical.asp
About Alloy Steel International
Alloy Steel International makes engineering and wear resistant materials used in the mining and mineral processing and construction industries. Arcoplate is manufactured through a patented process and is the only thermo- clad fused alloy wear plate available on the market. This process creates a metallurgical bond between the alloy and the steel backing plate that is resistant to wear caused by impact and/or abrasion. Arcoplate has demonstrated greater wear resistance and its smooth finish minimizes material hang-up, thus providing reduced downtime and greater productivity.
Investor Inquiry: Daniel Byrne (888) 998-8886 dan@e-vestorelations.com Except historical matter contained herein, matters discussed in this news release are forward-looking statements and are made pursuant to the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect assumptions and involve risk and uncertainties, which may affect the Company's business and prospects and cause actual results to differ materially from these forward-looking statements.
SOURCE Alloy Steel International Inc. -0- 01/19/2005 /CONTACT: Product Inquiry: Charles Purcell, (800) 451-6680, arcoplate@gdtr.com, http://www.wearplate.biz/ISS.asp; Investor Inquiry: Daniel Byrne, (888) 998-8886, dan@e-vestorelations.com/ (AYSI)
Posts: 433 | Registered: Jun 2004
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just did some digging in the last 10KSB just recently outk....here is something interesting! Looks like the trade show created a lot of interest!
Excerts from 10 KSB
We, together with our North American distributor, promoted "Arcoplate" at the September 2004 Mining Expo held in Las Vegas. The exposition of mining equipment and allied products is the largest of its kind in the world and held every four years.
Although the booth was small, Arcoplate, the company's premium wear resistant plate, was seen on a much larger stage affixed to the blade of one of the world's biggest bulldozers, a "Caterpillar D11".
Sales inquiries have been received from regions as widespread as Peru, India, Chile and Europe as well as multiple enquiries from users and organizations looking to be sub distributors in various American states as a result of participation at the show.
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