speaking of small caps, IMHO PSV and ISA are shares to include in ones portfolio. ISA, at this price gives a good div return. PSV, just concluded a deal and from re-stated reports their EPS have improved after the purchase. NAV at about 90c and TNAV at about 23c
There is a big diffrence between the market is never wrong and the price is always right. The market makes mistakes all the time. It does so because of a lack of infomation, uncertantity , emotions, value estimations etc. but the price is always the consensus of the most current buyers and sellers.
Wikipedia - "Graham wrote that the owner of equity stocks should regard them first and foremost as conferring part ownership of a business. With that perspective in mind, the stock owner should not be too concerned with erratic fluctuations in stock prices, since in the short term, the stock market behaves like a voting machine, but in the long term it acts like a weighing machine (i.e. its true value will in the long run be reflected in its stock price)."