Wadegarret...HSOA...I've changed my tune on it lately. Actually, I'm rather liking the stock at the $5 range (I even bought some today). I picked up 5K at $5.15. I see the risk/reward of it being pretty good. Some big-name solid institutions bought cheap shares last quarter. I'm figuring this stock will run up over $7 in the spring at the latest based on speculation over the next hurricane season. (They are predicting a colder than normal winter in the northeast, especially later in the season. This is because the weak El Nino is expected to diminish in influence. This will then be less of an issue next summer). I'm not going to wait till summer to sell though. I'll sell when the johnny-come-latelies jump on board for the next round "to the moon" (or whatever their battle cry is). I bought IPII a couple years ago in December when everyone was bored with it and sold it in the summer for a killing.
I did listen to their CC call and read through the 10Q carefully. There are some problems, but I can name 50 stocks on this board that have more questionable problems with them. They are profitable and growing. Management was grilled pretty good in the CC call about A/R, credit, and such. They weren't direct in their responses, but the answers where solid. They definitely would get themselves in trouble on some of those yes/no questions if they were lying. So overall I was satisfied. They need to get a few quarters of honest numbers under them. If they start collecting on their accounts receivables then the institutions will bid the stock price up.
Overall it is a good play on a beaten down stock. I don't think it is going to move significantly anytime soon (with tax selling season here). However, I'm patient.
P.S. I glanced at your old posts. For your credit, you haven't like HSOA until it was around $5.50 all the way to $4.56. So anyone buying on your recommendation is doing alright. (Unlike your first BBC recommendation above $13!!! But that's another story).
Dave
