Thursday, July 17, 2008

An Update from Alloy Steel International (AYSI.OB)

Recently, on message boards such as the one on Yahoo! Finance and Investor Hub, some investors in Alloy Steel International (AYSI.OB) have expressed frustration that Alloy Steel's management hasn't provided more frequent updates on the company's progress. Today Alloy Steel released its second 8-K in a little more than a month. The previous 8-K announced the formation of a joint venture in Mongolia with Geomandal; below is the text of the current 8-K.

UPDATE OF SALES AND ORDERS FOR ARCOPLATETM

Fortescue Metals Group (FMG) has continued its preference for the use of ARCOPLATE in all their mining operations with placement of an order for one million eight hundred thousand dollars ($1,800,000) worth of product this week.

ARCOPLATE was used predominately in the construction of their current mining operations in Northern Western Australia (Cloudbreak mine); the value of product utilised in Cloudbreak mine by FMG was $5.5 Million making total purchases of ARCOPLATE $7.3 Million by FMG (www.fmgl.com.au)

Part of this order is for their existing operation and the balance is for the start of the fit out of their second mine which is currently under construction.

Alloy Steel has been advised it is preferred supplier for this second mine's wear plate requirements.

Following a visit to Perth last week by a group of consultant engineers from Kuala Lumpur, a significant order has been placed for the first major use of ARCOPLATE in Malaysia.

The final order value is expected to be approximately $630,000.


Unlike some of those commenters on the message boards, I'd actually prefer to not hear any updates such as these for a while -- at least until my outstanding GTC limit buy order is filled.

2 comments:

J K said...

They're probably just your usual OTC swing traders looking for more quick money. Too many of those guys in your stock and it will get quite volotile. I've learned to let those type of guys get frustrated, dump their shares and move on to give me time to accumulate. That AYSI is too busy with their day to day operations to worry about their stock price by issuing fluff PR's is a bullish sign to me.

DaveinHackensack said...

Agreed, J.K.