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Contrarian, deep value, long/short equity, special situations

Lancashire - Shares Down 15% Despite Favorable Q1 2014 Results

Lancashire's shares seem to be in the downward spiral

The share price of Lancashire (OTCPK:LCSHF) has been in the downward trend since beginning of 2013 when the acquisition of Cathedral and subsequent dilution was announced. In my previous article I have noted that despite the dilution the acquisition was actually accretive to Lancashire's shareholders and that investors seem to be overly concerned about softening insurance/reinsurance industry. Recently Lancashire's shares saw an even sharper sell-off (down 15% during Apr-May), which was likely triggered by the resignation of its star CEO Richard Brindle.

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Source: Lancashire share price from Yahoo Finance

I believe that this sell down provides an even better entry opportunity, as company's financials have improved...

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