Small Cap Stocks

As is usually the case with our investments, we were a bit early into STLW, and despite what appears to be a stabilized business, with little downside risk, the market has until now firmly disagreed with our assessment, pushing the stock down  nearly 12% since our initial recommendation. However, the company’s latest fiscal first quarter report released last evening confirms our belief that STLW is a low-risk technology play with significant upside over the next few years, and that despite the fact that the earnings statements still are not exciting, the situation looks likely to improve throughout this year and next.