Once again it seems the small cap world provides a ray of light for investors with a tiny niche player roaring, or at least shouting, on the world stage.
It is hard to argue that there's a more troubled industry than steel manufacturing in the wake of BlueScope's announcement that it is shedding more than 1000 workers from its Port Kembla and Western Port operations, which makes the company's share price slide of almost 60 per cent in the past four months.
In contrast, the shares of Bisalloy Steel Group, another steel manufacturer, have climbed about 67 per cent over the same period. The rise is primarily due to investor optimism about a joint venture the company announced to manufacture its Bisplate steel technology in China with Shandong Iron and Steel, and then to sell directly into that market.
Bisalloy uses German technology and feed stock from the likes of BlueScope to make high-tensile quenched and tempered steel plate, or “Bisplate”, at Unanderra, south of Wollongong in NSW. It's a high-strength, lightweight steel that's used in the manufacture of things like large dump trucks, dragline buckets and cranes – all used in, you guessed it, mining.
It is hard to argue that there's a more troubled industry than steel manufacturing in the wake of BlueScope's announcement that it is shedding more than 1000 workers from its Port Kembla and Western Port operations, which makes the company's share price slide of almost 60 per cent in the past four months.
In contrast, the shares of Bisalloy Steel Group, another steel manufacturer, have climbed about 67 per cent over the same period. The rise is primarily due to investor optimism about a joint venture the company announced to manufacture its Bisplate steel technology in China with Shandong Iron and Steel, and then to sell directly into that market.
