HSOA – Update

By: ispeculatornew
Date posted: 05.27.2007 (12:00 am) | Write a Comment  (0 Comments)

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HSOA – Home Solutions of America (Nasdaq) (Closing Price – $6.97)

The stock price of Home Solutions of America has made quite a jump since they released first quarter earnings and I think the run is far from over.

In the past month Home Solutions of America has issued two press releases announcing contracts that were not included in the company’s previously announced backlog. One press release announced contracts worth 19 million, 11 million of which were not included in the backlog and are expected to be completed this year. The other contracts are valued at over 100 million and approximately 12 million of the work is expected to be completed this year.

The contract announcements coupled with the strong earnings report have sent HSOA’s share price from under five dollars to around seven dollars in a few weeks. I think the rally will continue and the stock price has the potential to make a strong run.

According to shortsqueeze.com the short interest in HSOA was 32% in May. If this is accurate the short interest is still extremely high and not many shorts have covered their position. If the stock price continues to climb this will change and a short squeeze will be triggered. This is one of the many previously mentioned catalysts that should benefit HSOA over the coming months.

I would continue to hold your shares or accumulate more shares. I think the stock price can make a similar run to the one it had last year if the right developments unfold (continued strong results, new contracts, hurricanes, etc.).

I also want to disclose that I bought back in and I currently own shares of HSOA.

Disclosure: I currently own shares of HSOA.

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