Posts Tagged ‘HSOA’

HSOA – Sell Recommendation

By: ispeculatornew | Date posted: 08.15.2007 (12:00 am)

HSOA – Home Solutions of America (Nasdaq) (Closing Price – $4.70)

Home Solutions of America released their second quarter results last week and posted moderate results. However, HSOA’s management did not provide additional details about their disputed New York and Florida contracts. They also did not provide guidance and they said they were going to delay providing a balance sheet until they talked to their lenders about the resolution of a note related to the acquisition of Fireline Restoration. In light of the many issues surrounding Home Solutions and the lack of information given by the company I am going to recommend to sell HSOA. (more…)

HSOA – Update (Stock Lemon)

By: ispeculatornew | Date posted: 06.11.2007 (12:00 am)

HSOA – Home Solutions of America (Nasdaq) (Closing Price – $6.00)

The stock price of Home Solutions of America has taken quite a hit in the last week so I will provide an update of what caused this and where I think the share price is headed from here.

The initial cause of the selloff was an article written by stocklemon.com which calls itself “Cintron Research”. Before I go into the details of the article they wrote let me give you some more information on stocklemon.

The people behind stocklemon establish short positions in stocks, usually companies that trade on the pink sheets, and then they write negative articles about the companies to drive the stock price down. They basically try to scare people into selling shares of the companies they write about so they can make money. The articles they write have to be taken with a grain of salt, or just disregarded, considering the obvious bias they have. (more…)

HSOA – Update

By: ispeculatornew | Date posted: 05.27.2007 (12:00 am)

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. (more…)

HSOA – Q1 2007 Earnings

By: ispeculatornew | Date posted: 05.12.2007 (12:00 am)

HSOA – Home Solutions of America (Nasdaq) (Closing Price – $5.54)

On May 11, Home Solutions of America announced very good first quarter results. They also gave guidance for higher revenues and earnings in the second quarter.

Home Solutions reported revenue of 39.9 million and earnings per diluted share of 0.12 in the first quarter of 07. Both of these numbers were improvements sequentially and year over year. For the second quarter they gave guidance for revenues between 44-48 million and earnings between 0.14-0.17 per diluted share.

The CEO of Home Solutions said the “results reflect our ability to successfully address several of the operational issued that adversely impacted our 2006 fourth quarter results and to integrate the Fireline and Associated Contractors acquisitions.” With the operational issues taken care of and the seasonally slower first quarter complete, Home Solutions should start to post better results. This is evidenced by the guidance for higher revenues and earnings in the second quarter. (more…)

HSOA – Q4 2006 Earnings

By: ispeculatornew | Date posted: 03.25.2007 (12:00 am)

HSOA – Home Solutions of America (Nasdaq) (Closing Price on Friday 3/23/07 – $4.99)

Home Solutions of America reported disappointing results for Q4 06 on March 16 but they gave decent guidance for next quarter and in the last few weeks they have announced new contracts.

HSOA had earnings of 0.05 per share on revenues of 34.7 million. The lowered numbers were blamed on delays in funding for the Gulf Coast area and on weakness in the housing sector. Fourth quarter results were also impacted by one time charges.

For next quarter they gave guidance of revenues from 35 to 40 million and earnings of 0.09 to 0.11 per diluted share. If they only make 0.09 next quarter it will be an improvement of a penny over the corresponding quarter last year. If you assume they only make 0.09 the next four quarters HSOA will have a forward PE of 14 with Friday’s closing price. That is pretty cheap. (more…)

HSOA – Hold Recommendation

By: ispeculatornew | Date posted: 03.05.2007 (12:00 am)

HSOA – Home Solutions of America (Nasdaq) (Closing Price – $4.91)

Home Solutions of America today lowered guidance for 2006 to 0.43-0.46 per share from previously announce guidance of 0.56-0.60 cents per share. The company said the lowered guidance was due to a weak remodeling and rebuilding sector and delays in government spending for New Orleans. The stock price took quite a hit but I would recommend to continue holding your shares.

Even with the lowered guidance HSOA is still trading at a very low trailing PE (4.91/0.43 = 11). Also, the stock market is forward looking so the guidance for the current year is a lot less important than the guidance for next year. HSOA plans to announce the fourth quarter results and the outlook for 2007 on March 15. If HSOA guides for higher revenues and earnings in 2007 I think the stock price will make a quick rebound. (more…)

HSOA – Buy and Accumulate

By: ispeculatornew | Date posted: 03.01.2007 (12:00 am)

HSOA – Home Solutions of America (Nasdaq) (Closing Price – $5.81)

Last month an analyst downgraded HSOA from strong buy to buy. I found the timing of this downgrade to be very curious. In my opinion the stock was on the verge of breaking out and triggering a huge short squeeze. However, the downgrade brought some selling pressure and general wariness of stocks this past week hasn’t helped.  

I still think HSOA is a good buy and I think now would be a good time to accumulate more shares. From a fundamental perspective HSOA is way undervalued and I think it is just a matter of time before HSOA’s share price breaks out of its trading range. (more…)

HSOA – Initiation of Buy Recommendation

By: ispeculatornew | Date posted: 01.29.2007 (12:00 am)

HSOA – Home Solutions of America (Nasdaq) (Closing Price – $6.52)

Home Solutions of America is a company that I have some reservations about recommending but I think now is a good time to buy.

HSOA provides recovery, restoration, and remodeling services. The company’s stock price had quite a run last year but a questionable press release by the company sent the stock sharply down and the stock hasn’t recovered. I will leave it to you to find out the details of what happened but it definitely raises concern about the management of the company. (more…)