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Re: wadegarret post# 68298

Friday, 03/23/2007 1:45:41 PM

Friday, March 23, 2007 1:45:41 PM

Post# of 173812
Wade...HSOA...With the new contracts and reduced stock price, HSOA has turned into a decent play. Even with reduced earnings in the 1rst Q (a weak quarter for them) of approx. 10 cents/share, a $5 price is more than fair. Also, lofty management expectations are getting behind them so the odds of them continually disappointing are diminishing.

The contract they received for the Florida tornado last month will play well going into hurricane season. On April 2nd is when the Colorado meteorologist reports his early hurricane season estimate. Right now, the estimate is 86% for an above average season vs 3% for a below average. This is due to the definitive switch to a La Nina season.

Shorts are powerful, but even they will get weak kneed when the storms start forming. This will cause enough volatility to make easy money here IMO (especially vs limited downside risk)

Dave

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