Risk Strategy

During the recent decrease in the stock market the board took the opportunity to purchase new stocks. Portfolio diversification and the cash policy are concious decisions taken by the board to develop and implement a risk strategy. The long-term trend in the stock market is uncertain (see macro analysis). It is a believe of the board to actively and well in advance pursue risk-eliminating strategies.

To minimize exposure to risk in 2007 the board will continue to develop the two variables.

1. Cash Policy - A.f.f.e has about SEK43.000:- in cash (10%), which is a decrease by approx. 50% (SEK87.000:-) since Jan 1st 2007. Wealth is not created in the bank account (as if shareholder value was created in the accounting department...). My recommendation to the board is to increase our cash policy to 25% by the end of May.
2. Portfolio diversification - the board will continue to actively implement the recommended portfolio diversification (see other post) during Q2 2007. My recommendation to members of the board is to take an active approach to this task.

Patrik