Hurricane Stocks

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Interesting Read about HSOA from CEOcast.com:

With Ernesto upgraded to a Category 1 Hurricane that was forecast to grow to a Category 2 storm expected to reach Cuba within the next 36 hours, shares of Home Solutions of America, Inc. (NASDAQ: HSOA), a provider of recovery, restoration and rebuilding/remodeling services, could receive a boost this week. The storm, which forecasters say may enter the Gulf of Mexico just as New Orleans marks the first anniversary of the devastating Katrina, which struck on August 29 last year, killing over 1,500 people in Louisiana and Mississippi and leaving hundreds of thousands homeless, could create a substantial amount of additional work for HSOA if it makes landfall in the U.S. by the end. While it is premature to suggest that Ernesto will cause the same amount of damage as last year’s storms or even reach the U.S., note that last year shares of Home Solutions doubled in less than a one month period beginning at virtually the same point in time last year (the final week of August), which represents the start of the peak hurricane period. Shares could be even more volatile this year, as approximately 40% of the float is short. While sentiment in the name has been lopsidedly negative, helped by a dramatic increase in short interest (rose approximately another 600,000 shares in August to 12.6 million), the stock posted small increases in price last week for three consecutive days, suggesting that sentiment could be finally turning. Last week, the company said that its subsidiary, Home Solutions Restoration of Louisiana, and a strategic partner had been awarded a contract valued at $5 million for restoration and rebuilding services in the historic French Market of New Orleans, reflecting our belief that rebuilding activity in the Gulf Region remains robust. The stock closed at $5.66, up 7 cents on the week.