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Re: wadegarret post# 51631

Tuesday, 08/15/2006 1:33:36 PM

Tuesday, August 15, 2006 1:33:36 PM

Post# of 173801
Wade, re HSOA. Companies in construction will typically book revenue one of two ways; either on completed jobs or percentage completion method. They will not normally book revenue for work that is yet to be performed. The verbage is too vague for me to see what HSOA is really doing. HSOA needs to triple their revs in the second half of this year from the first half to meet their revenue estimates. If you believe they can do that without large scale dilution, then there probably is some good value here. To me, it all sounds too good to be true, and I think it probably is.

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