AUKUS Treaty NEWS ONLY

Whats it got to do with AUKUS?
Whyalla manufactures rail and steel beams for construction. The hi-tensile steel for Australia's AUKUS production is coming from Bisalloy Steels.
 
Halcyon66 said:
The whole segment is under pressure.

Regards,
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simplywall.st

Bisalloy Steel Group's (ASX:BIS) five-year total shareholder returns outpace the underlying earnings growth

It's been a soft week for Bisalloy Steel Group Limited ( ASX:BIS ) shares, which are down 11%. But that does not change...
simplywall.st simplywall.st

Stock price up 302% over five years, average annual earnings per share over the period of 25%. You could argue its actually overpriced at the moment with a high P/E ratio but I imagine investors are factoring in future earnings like with most defence stocks at the moment. Share price is down from a peak of around $4.50 over Christmas as you would expect with Trumps tariffs threats negative impact on global prices.

Incidentally Bisalloy signed a contract last year to supply Australian steel for US submarines via the AUKUS agreement.
www.aumanufacturing.com.au

Bisalloy to supply steel into US navy shipbuilding - Australian Manufacturing Forum

Armour steel manufacturer Bisalloy Steel has broken into the US military shipbuilding market, snaring a purchase order for processed Australian steel from Newport News Shipbuilding. Newport News is a division of HII, the largest military shipbuilder in the US and one of two US companies that...
www.aumanufacturing.com.au www.aumanufacturing.com.au
 
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237.5% over the last 5 yrs and a current PE of a little over 10, that is not a high PE.

Fair value (Earnings Growth Rate x TTM EPS) of the stock is 8.22 AUD.

Tts intrinsic value calculation is 5.70AUD

So, it is not overpriced it is underpriced and therein lies the issue.

Regards,
 
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The Intrinsic value was AU$1.93 in spring 2023, AU$2.77 in spring 2024 and your AU$5.70 valuation today seems to rely heavily on an AI generated relative value of 6.70 (That's an industry average not a company comparison) compared to a DCF (based on actual current and projected future corporate earnings) of 4.69 similar to the stock price before Trumps tariffs.
 
Sorry, so initially you said it has a high PE, which it does not ( a little over 10 currently) and was overvalued at its current price.

Now you're saying it is undervalued.

You should defiantly buy some.

Regards,
 
Halcyon66 said:
The whole segment is under pressure.

Regards,
Click to expand...

Yes it is

Halcyon66 said:
So, it is not overpriced it is underpriced and therein lies the issue.
Click to expand...

What are you even attempting to say here, youve been arguing the sector wasnt doing well and that was an issue, now you are saying that the company being undervalued because its performing well and revenues are growing fast is an issue?

You are just posting any negative news story you see without any understanding (like Whyalla having no connection to AUKUS) and then when challenged on that you post stuff that contradict your own narrative. That AI generated company analysis you posted as another example applauds the companies shareholding structure highlighting strong public ownership (over 51%), Hedge funds not having a meaningful share, and high institutional and insider ownership with no single dominant shareholder.
 
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If the stock was a good trade, it wouldn't be underpriced.

That is a pretty simple point.

You don't need AI to work that out.

Regards,
 
An under-priced stock is a good buy, an overpriced stock is a bad buy. That's simple finance.
 
Right, been in the markets globally for 35 yrs and that is exactly how it works. Retired now If only the gang all knew that years ago, damn.

Yet again nothing stopping you from buying any.

Okay so I posted a link about the demise of Whyalla, with another link to why the Govt is sending billions OS and not focusing on our own steel companies. And of course, now they are bailing out Whyalla with taxpayers' money.

Collapsed twice what could possibly go wrong, third time lucky.

You come back with Bisalloy got an Aukus golden ticket, looked at the stock and it is underperforming and stated that.

Then you tell me I am running some narrative, opinion. Additionally, I have no understanding of what I am writing.

You do realise that the only contract Bisalloy has is to supply steel is for testing nothing more, and the duration is 16 months.

If it passes over 4500 different tests they are then qualified to supply steel, not guaranteed to supply steel.

Regards,
 
The December 2023 contract was for test samples to begin the process of qualifying them as a supplier which will indeed take 16 months, the follow up April 2024 contract is for steel Newport News Shipbuilding will use to train its employees in welding and testing. The Australian government has also awarded them the contract to supply the proofs for steel that will be used for Australian sub construction.

 
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The simple issue with AUKUS from the beginning was that Australia was paying the US to build subs for the US.

The Australian govt sent 500mil USD to the US a few weeks ago.

The Australian govt is paying the US, which in turn is paying US contractors.

Those US contactors then pay who?

Looks great in the news, yet nothing more than an old shell game.

No one is out of pocket other than Australia.

Regards,

PS. Once again no one is stopping you from loading up on BIS.
 
Either Australia values freedom of navigation or it doesn’t. If it does, allying with the U.S. and contributing to regional defense is a long term security investment.

Also it should be restated for the tenth time that AUKAS is not just about submarines.
 
Either Australia values freedom of navigation or it doesn’t.
Click to expand...

Obviously, it does...............

The People's Liberation Army-Navy Renhai-class guided missile cruiser Zunyi, one of the world's most advanced warships.

Was 150nm off Sydney yesterday

That has to be the biggest middle finger in Australia's military history.

“The Chinese military is not a distant problem; it is a problem right here in our neighbourhood," former senior defence official Michael Shoebridge said, the Sydney Morning Herald reported.
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Regards,
 

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