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Stocks aren’t making much progress this week, particularly the large-caps — though, of course, there’s no doubt that assets are overbought after a four-week spree of advances. Earnings have been mixed and include a revenue miss for Verizon Communications Inc. (NYSE:VZ) that hit the shares hard, along with those of its telecom peers.
The small-caps are faring better than their larger cousins, as is the Nasdaq, suggesting that risk-taking has not completely gone out of fashion. And I’m recommending one of their number today.
Amerisafe, Inc. (NASDAQ:AMSF) is a $1.2 billion workers’ comp insurance company focused on construction, trucking, manufacturing, agriculture, energy, logging and maritime agencies. It is based in DeRidder, Louisiana. This has been one of the strongest small-caps for the past few years, humble and quiet though it may be. It is pulling back from its uptrend and should trade back to highs and beyond.
This is a good company in one of the few really successful niches in the financial arena. Buy AMSF at $61.95 limit, good till canceled.
Jon Markman operates the investment firm Markman Capital Insights. He also offers a daily trading advisory service, Trader’s Advantage, and CounterPoint Options, a service that helps individual traders make steady, consistent profits with volatility-related instruments. Follow him on Twitter for his latest take on markets and innovation.