I often deal with small and micro caps with limited/thin trading volume. While the price volatility is higher, it creates more opportunities for the astute investor to profit. All long term outperformance must derive from systematic exploitation of market inefficiencies. The market is less efficient for small and micro caps.
I view yesterday's developments as positive for the company. The relationship with ACE removes the issue related to self insurance. I also think it is positive that an established player like ACE has reviewed the workers comp reserves. The stock had gotten ahead of itself perhaps at 100. I continue to like the long term story here. I continue to hold the large majority of shares.
Edward J. Roche
President Freedom Mountain Investments