Sex beats stocks

About a month ago, I contacted one of the founders of Kickstarter about using it to raise funds for a due diligence trip to Alloy Steel International's headquarters in Perth. I wrote,

I know from the Kickstarter site that you're currently only accepting projects through invitations, but I think mine is probably a little different than your typical request, so perhaps you'll make an exception (or connect me with someone who has an invitation to share?). Here's the idea.

I went on to explain that everyone who donated at least $100 to the trip would get a detailed report (one that didn't offer any financial advice and complied with all relevant securities regulations). Those who donated more (say, $300) would get the report along with a conference call with me where they could ask me additional questions, etc. The Kickstarter founder I contacted thought it was an interesting idea referred me to his staff members who review ideas for inclusion on the site.

One of those staff members sent me a rejection note a few days later. She wrote that "projects must also engage the community and offer tangible rewards".

I hadn't thought about that much in recent weeks. I've had my hands full with the launch of Portfolio Armor and a few other things, plus after my conversation with Alloy Steel exec Greg Muller followed by the company's revenue release earlier this month, I feel less of an immediate need to go to Perth. But I was reminded of this by an e-mail from a fellow AYSI shareholder yesterday. So I went to Kickstarter's website to copy its URL to paste in my e-mail reply and saw on the homepage this project, that did pass muster with the staff (and has raised more than double its goal in donations so far):

Coming & Crying: real stories about sex from the other side of the bed

About this project

Meaghan and Melissa (or,¹ "we") met because of the internet and writing, and writing about sex (and blogging about writing about sex). Almost since then, we've been talking about how we need to do a book like this: a collection of stories (and photographs) from the messy, awkward, hilarious, painful, and ultimately true side of sex.

As part of this project, all of the money we raise together will go towards producing the book and to paying its contributors. The more we bring in, the more we can put out -- a prettier book, bigger take-home for our writers and photographers, and fancier packages for all those who pledge.

There's a ~2 minute video at the link above that gives you a better idea of what these two gals are working on.

I feel like a knucklehead now. I could have proposed as a project a documentary about sex in Perth, with its own alliterative title -- "Sexual Perversion in Perth" (betting that none of the Gen Yers on the Kickstarter staff would be familiar with Mamet play that title rips off) -- and then if I got accepted and funded, did my due diligence on Alloy Steel surreptitiously while I was down there.

¹That's a "comma of apposition" for you aspiring grammarians out there.

Update on Varanus Island

In a previous post ("Answers from Alloy Steel's CFO") among the questions answered by Alan Winduss, the CFO of Alloy Steel International (OTCBB: AYSI.OB) was this one,

Have you been materially affected, or do you anticipate being materially affected by the reduced natural gas supply as a result of the Varanus Island explosion earlier this month?

The Varanus Island plant provided 30% of Western Australia's natural gas, and the supply disruption resulting from the explosion has, according to Perth Now caused some mining companies (Alloy Steel's clients) to suspend some operations or resort to more expensive diesel to run their generators.

This was Mr. Winduss's response,

We expect to experience a slow down in orders from some mining companies effected by the gas shortage; however the timing of this cannot be determined.

Perth Now reported some positive news on this Friday ("Gas supply repairs ahead of schedule"):

US-based Apache Energy said today that output of 110 terajoules a day would resume next week, slightly ahead of schedule, following the June 3 explosion.

Full production is not expected to be restored until the end of the year.

On June 23, Apache said it hoped to bring on partial production of 200 terajoules by August 15 and full production of 350 terajoules by December.

It said the schedule was now 240 terajoules a day within a few weeks and full production by the end of the year.

[snip]

WA Premier Alan Carpenter welcomed the news the Varanus plant would be back in operation ahead of schedule, but said it did not mean the situation was resolved.

``Having 80 terajoules in that pipeline by Tuesday next week and 110 by the end of the week ... means of course that a very much improved situation is sitting out there in front of us,'' he said.

A Macro Trend in Western Australia

A few weeks ago, I bought shares in Alloy Steel International (AYSI.OB -- I'll post a write-up of it here soon), a company based in Western Australia. Since then, I've started to follow the news from Perth. The big news recently has been the huge natural gas explosion on Varanus Island earlier this month, that has reduced Western Australia's gas supplies by 30%. Today, Perth Now reports that Australia's Treasurer predicts that this will hamper economic growth in Western Australia and throughout the country for the rest of the year. Alloy Steel is scheduled to open a new mill this summer, so this could affect its ability to run at full capacity.

Another article in Perth Now points to a macro trend worth noting: "Population explosion makes Perth the prime mover". Excerpt:

A NEW study has found Perth is growing at the fastest rate of any city in Australia's 200-year history.

Monash University population expert Bob Birrell said Perth's population would increase by 43 per cent between 2005 and 2021, taking the number of people living in the city from about 1.5 million to more than 2.1 million.

Dr Birrell said that would constitute the fastest rate of growth of any Australian city, at any time.

"This is absolutely massive, completely unprecedented,'' Dr Birrell said.

"It's a massive task for building infrastructure."

Time to start researching what local companies will benefit from this macro trend (infrastructure companies obviously are the first to come to mind), and then drill down further for potential investment opportunities. I'll post a follow-up after I've done some homework on this.