Michael Alexander

Alloy Steel International: Explosive Growth at a Reasonable Price

A couple of comments

First I attribute the drop in share price after last Q to disappointed speculators who jumped in after a blockbuster Q4 where everything from sales to margins clicked perfectly. The stock had a near 100% runup into that report so it wasn't a suprise to see it lose some.
One thing to keep in mind is especially in terms of gross margin there can be some significant variations from quarter to quarter for AYSI.

As a previous poster noted since this article was written the company announced the expansion of their facility to include a second mill. This was news I had been expecting and it validates the growth thesis. I think this likely more than doubles their capacity. I think it will be awhile before 2 mills are running at full bore but assuming they get to that point there should be enormously higher earnings flowing to the bottom line.

As far as how I found out about the company its just a matter of bleary eyed reading of quarterly reports until something interesting pops up.