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Re: abh3vt post# 45360

Friday, 06/02/2006 2:01:19 PM

Friday, June 02, 2006 2:01:19 PM

Post# of 173815
HOM, Stocklemon makes some excellent points. Years ago, I had a position in American Eco where Frank Fradella comes from. Fortunately, I bailed when it became apparent that the rosy projections were not working out. Irregardless of that, HOM is a construction company but trades at an extremely rich valuation for that. P/S ratio is 5 and P/Tangible BV is about 9. Positive Cash flow is only 20% of income. Even IF they do make their rev and income projections, this one would still be no bargain. And now the insiders have been on a selling spree. Caveat emptor!

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