Savvy Trades and Investments

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Nice close on HSON! I'm up a quick 20% so had to trim a few. Wishing I'd bought more. New 52-week high and thinly traded, so the stock could see some momo action higher.

The CC sounded pretty bullish. My main concern on HSON is the strong bottom line showing last quarter...is it sustainable or was it a fluke. Margins are very slim, so EPS could fluctuate wildly with their small share count. As you noted previously, sounds like Q4 revenues will at least be strong. Better than Q3 according to the CC. Not a surprise I guess with the good demand and recent acquisitions. They did mention seasonality on the CC. Q4 normally a slower quarter with the holidays and Q1 sounds like their seasonally weakest quarter. I'm guessing earnings could be down in those quarters (Q1 in particular) but who knows.

CEO on the CC transcript-

"And there is some seasonality in our business. I mean, we do tend to see the fourth quarter. You have holidays, you know, fewer hours work. And then the first quarter is particularly slow for us because of our Asia-Pac exposure. Sounds odd to us in North America, but Australia's basically at the beach from Christmas through mid-January. And Chinese New Year, which slows down our China and Hong Kong operations, but we keep winning new business. Revenues are increasing and we think we're going to continue to see good growth going forward. So, in other words, despite slowdown from holidays, Q4 should be better than Q3 and 2022 should be better than 2021. That's what we're seeing."