Wednesday, October 3, 2007


Alloy Steele International Inc. is an over the counter stock that I would consider a risky investment. Current price is 55 cents a share. I purchased this one yesterday at 61 cents, so I am down a little bit today, but I'm not concerned. It's down on low volume, after trending up on a couple of incredibly high volume days. Also, since prior resistance was at 55 cents, 55 is now a support level. A good lesson in patience for me here though, my initial reaction was to put in a bid at 55 cents, but I thought, what's a few pennies, and placed a bid that was between the current bid ask range instead. I could have saved myself a few dollars.

ASYI is a tip I got from my father, based on some information from the ihub board (see the link below).

I'm mostly a trend and technical trader, but the financials on this stock look good, from my limited eye.

A little bit about ASYI.

Alloy Steel International, Inc., together with its subsidiary, Alloy Steel Australia (Int.) Pty Ltd., engages in the manufacture and distribution of Arcoplate, a wear-resistant alloy overlay wear plate, primarily in Australia. It offers fused-alloy steel plates for installation and use in structures and machinery that suffer wear and hang-up problems. The company's customer base primarily includes companies involved in the mining and dredging industries. Alloy Steel International is also developing the 3-D Pipefitting Cladder process for depositing a profiled layer of wear resistant alloy onto interior surfaces of pipefittings, which are used in various industries. The company also distributes its products in the United States, South America, India, Indonesia, Singapore, South Africa, Japan, China, Canada, and Malaysia. Alloy Steel International was incorporated in 2000 and is based in Malaga, Australia.
Another reason that this stock makes sense with my portfolio is that I have a good chunk of my money invested in the mining industry. If I am betting on them, it's not a huge leap to bet on the people that provide equipment for them.

I would say that this is not an investment for the faint of heart, and remember to always do your own due diligence before investing.

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