Keeping a Casual Eye on ASUR, Part II

As I mentioned in a previous post ("Keeping a Casual Eye on ASUR"), I closed out my positions in Asure Software (Nasdaq: ASUR) at .25, but I planned to keep a casual eye on the stock to see

if Red Oak succeeds in unlocking some shareholder value here. If so, it might be worth considering piggybacking on their next venture in micro cap shareholder activism.

Red Oak and other current ASUR shareholders just suffered a setback: after the close yesterday, ASUR management announced that the firm had lost its trial against its former law firm, and was liable for nearly $5 million in damages, attorney's fees, and interest. If that judgment stands, that would wipe out half of the cash on ASUR's balance sheet. The stock dropped 20% on this news, in response to which a commenter on the company's Yahoo! Finance message board wrote,

1. Warrent Buffett: "You should invest in a business that even a fool can run, because someday a fool will."

2. Now, I understand why Warrent Buffett doesn't like cigar butts anymore.

3. Why this pending lawsuit is not on the 10K?

The litigation actually was mentioned in the company's 10-K, but, to be honest, I didn't pay enough attention to it. I lucked out with the verdict being released now versus last month, when I still held the stock. I wonder if this verdict was a surprise to Red Oak Partners as well. I am going to e-mail David Sandberg at Red Oak now and ask him. I'll update this post with his answer if he is kind enough to respond.