BIS - Bisalloy Steel Group

[roadtripping]

I note 3 directors have bought in for $600,000 in the past couple of days, share price appears to have bottomed as well. Steel prospects look good into future one would think.
Buy opportunity? - Anyone following these guys?

 

[Cashflows]

I have been looking at this business recently, cashflow breakeven, p/e of 12 and paying a 6.5% dividend - and that's with the plant operating at way below capacity. I understand there has been steady and consistent declines in revenues and that arrium going into administration has not helped. However, I wonder if the turnaround in the mining capex (which historically has accounted for about 70% of revenue) due to the rebound in commodity prices - will see an increase in revenue. An example of this would be Austin engeering recently reporting a significant increase in mining related equipment, which I believe would require the hardened steel that bisalloy produces. on a longer term outlook, there is also the matter of the defence contracts for both the navy with their submarines and frigates and the army's new apc's and land cruisers. There has been quite confident talk of winning said contracts by both the md and the chairman however I wondered if anyone would have knowledge of the industry or be familiar with the matter and provide a second opinion?

 

[divs4ever]

Financial Results for the Year Ended 30 June 2021 (“FY21”)
• Operating EBITDA of $16.7m, up 25.4% on last year
• Revenue of $104.8m, down 5.3% on last year
• Net Profit After Tax of $9.0m, up 31.1% on last year
• Earnings Per Share of 19.3c, up 29.5% on last year
• Final Dividend for the FY21 year of 9.0cps fully franked
Bisalloy Steel Group Limited (ASX:BIS) (Bisalloy) today reported Operating EBITDA of $16.7m for FY21 (FY20: $13.3m).

DYOR

i do not hold this share

another stock i have looked at several times and bought elsewhere

 

[divs4ever]

( since the last post i have bought into this ) ( about a week ago )

my tip for the March monthly competition is BIS

unlike my usual modus operandi i think this has a CHANCE of going up ( but i wouldn't suggest anything but a careful dabble )

there are war drums beating loudly , and some nations will be scrambling for specialty steel ( not just armor-plating )

while i hope the war concerns fizzle out and this drops , so i can buy more cheap , there is the possibility this saga while continue for a month or two so more war machines can be sold


DYOR

 

[divs4ever]

BIS is my May selection in the tipping Comp.

i notice Peter Dutton over the weekend told us to prepare for war with China , and Sco-Mo is busy sending Bushmasters to the Ukraine for durability testing ( or target practice if you are a Russia fan )

i see the US has selected a new battle rifle ( and hand-carried machine gun ) which should do more than scratch the paint of armoured Vehicles ( and literally eat Hum-Vees ) so the Oz conscripts might need a bit better protection ( against US friendly fire )

i already hold some of these shares ( and dearly hope they drop lower so i add some more , when logically they should rise )

so i see a potential demand for Aussie steel plating on the horizon

DYOR

 

[Country Lad]

One of my favourite setups. Last night's chart and it has gone on with it this morning, breaking through my indicators with good momentum, so topped up this morning.

 

[Dona Ferentes]

One of my favourite setups. Last night's chart and it has gone on with it this morning, breaking through my indicators with good momentum, so topped up this morning.

well found,

1. Internationally acclaimed for its strength, weldability & toughness, BISALLOY® Armour steel is specified for use in:

• Armoured Personnel Carriers (APC)
• Light Armoured Vehicles (LAV)
• The Bushmaster Infantry Mobility Vehicles in Australia

2. BISALLOY® Protection steel plate is specifically for shielding applications that do not require full military specification armour grade steel
3. BISALLOY® Wear steel is market leader in Australian mining, mineral processing and quarrying for high strength wear plates
4. With its high-strength properties, BISALLOY® Structural steel enables manufacturers, engineers, industrial designers and architects to deliver size, weight and cost savings while still achieving required levels of strength and performance

Listing in 2003, the market cap is around $100 million. Financial metrics are undemanding and heading in the right direction. Single digit PE, increasing earnings, healthy Return on Equity and a rising dividend.

 

[divs4ever]

my buy-in @ $1.48 in February 2022 , looks good so far

 

[DrBourse]

One of my favourite setups. Last night's chart and it has gone on with it this morning, breaking through my indicators with good momentum, so topped up this morning.

View attachment 147696

Hi Country Lad,...
Might offer my thoughts on the next moves by BIS....

The following page 30 from my Dr Bourse Manual pretty well explains my thoughts.

Free .pdf copies are available on request.
Cheers

 

[DrBourse]

Hi Country Lad,...
Might offer my thoughts on the next moves by BIS....
View attachment 147744
The following page 30 from my Dr Bourse Manual pretty well explains my thoughts.
View attachment 147742
Free .pdf copies are available on request.
Cheers

As a follow-up to my 6/0/22 post I now offer some further TA.

Candlesticks/CCI gave the 1st Sell Signals by way of the Sell Divergence.

Bisaloy (BIS) then failed the Containment Candles test (page 30).

BIS now has to negotiate the Benchmark Candles test (pages 197-199).

And now All ST Inds are now are suggesting further ST downtrend, with the Resistance Lines @ $1.96, $2.07, $2.135 & $2.18 being the immediate hurdles that confront BIS in the ST as shown on todays Chart (above).

Be careful with BIS, wait for the safe entry signals.

Cheers DrB.

 

[DrBourse]

This XJO Chart is a pretty good example of how the Benchmark Candlestick Formation works by providing Upper, Middle, & Lower Sup/Res Lines.

 

[DrBourse]

BIS Cht Resistance Lines as at 1.17pm 25/10/22

 

[Dona Ferentes]

somewhat surprised by the selling, which seemed to taper off by EoFY .

YTD :

 

[DrBourse]

BIS Financials to date do not give enough ammunition for me to make a Financial Analysis Call…..

BIS announcements have been Non-Existent over the past 4 months, last Annoc was 20/3/23……

And the 1H23 Results were far from promising…..

EOFY Financials are due shortly, they may provide some answers on the FA Side of the Ledger….

So, at this stage the only real call is based on TA…..

From the Chart below, and as mentioned in my 21/10/22 post, we can see that BIS 1st ran into trouble Mid to Late Sept 2022 with that Sell Divergence (pages 45, 82, and many others)….

Then on 6/10/22 it hit more headwinds with the Containment Candle Formation (page 9)….

Then there was the Benchmark Candle Formation (pages197-199) from 17/10/22 to 24/10/22….

Then for the 1st 6 mths of 2023 the BIS Linear Regression (pages139-142) has been in a Downturn….

Since 30/6/23 BIS has managed to pass above 4 Resistance Lines – But there are still 4 more to break….

The current ST Uptrend (30/6/23 to 21/7/23) looked pretty strong, But from 18/7/23 to 21/7/23 the BIS Chart is showing signs of “Loss of Momentum” (page 17), with most ST Indicators tracking sideways and some dropping…..

For BIS to continue its current ST Uptrend it needs some good news, because it looks like running out of steam in the near term…..

The above are obviously my personal Observations….. DYOR…

Cheers…

DrB.

 

[Dona Ferentes]

Still around $2.00 a share
.

.
FY24 Outlook
The Australian economy has been resilient with relatively high commodity prices and low unemployment. However, there are signs of downside risks building, and a global slowdown driven by Chinese demand poses a significant threat to steel prices and therefore margins. Despite these headwinds, we remain optimistic to deliver another strong year.

We will continue to invest domestically and internationally in our business and execute on our purpose to provide innovative steel solutions for extreme environments.

 

[Dona Ferentes]

AGM today, and enough in the content to send BIS higher by 10 per cent, to $2.11
.
from the chair:
Looking ahead the headwinds that we have begun to experience in the second half of FY23 are expected to continue through FY24. Falling international steel plate prices coupled with the significant cost pressures and coastal shipping disruption described earlier will reduce our profit margins and supply chain predictability. Despite these headwinds, we remain optimistic to deliver another strong year.
... and the M.D.

 

[divs4ever]

AGM today, and enough in the content to send BIS higher by 10 per cent, to $2.11
.
from the chair:
Looking ahead the headwinds that we have begun to experience in the second half of FY23 are expected to continue through FY24. Falling international steel plate prices coupled with the significant cost pressures and coastal shipping disruption described earlier will reduce our profit margins and supply chain predictability. Despite these headwinds, we remain optimistic to deliver another strong year.
... and the M.D.
View attachment 163606

i hold

i might think longer on this before adding to my 'top up ' list

( at a rough estimate i would be be looking for something below $1.50 , so no rush )
, but the headwinds mentioned were quite predictable , so was nice to see they have taken steps to reduce rising cost pressure , but wonder if the R&D increase will pay off ( apart from tax rebates )

 

[Dona Ferentes]

made 2.84 earlier this month before running out of steam

 

[Dona Ferentes]

now 2.38 and up. ....4500 tests !!

Bisalloy contracts for Australian SSN-AUKUS Hull Steel Qualification

The Australian Submarine Agency has entered into a contract with Bisalloy Steels, for the qualification of Australian steel for use on Australia’s SSN-AUKUS conventionally armed nuclear-powered submarines. The contract is valued up to a maximum of $15 million and for a term of approximately 16 months.

The comprehensive qualification process, involving more than 4500 tests, is expected to be completed in the first half of 2025.
Bisalloy Steels will perform the advanced heat treatment process on the raw plate steel to produce high grade submarine pressure hull steel that meets or exceeds both the UK and US standards. The raw plate steel will be supplied by BlueScope.

The qualification of the steel to both the UK and US standards will increase the resilience of the AUKUS trilateral supply chain. Not only will the steel produced under this contract be used for qualification purposes, it will also be used to develop the necessary welding procedures, and used in early production demonstration activities occurring ahead of the commencement of construction of Australia’s first SSN-AUKUS submarine later this decade.

 

[Als2own]

I’m holding this one for the foreseeable future and have selected it for the yearly tipping competition. Although they have some cost pressures to absorb, they continue to surpass my expectations and have thrown out some great dividends lately. If they can secure a supply contract to supply the hull steel for the AUKUS subs they will be very busy for many years. With only 48m shares on offer if they win that contract I wouldn’t be surprised if they get a knock on the door to do a stock split