From the CEOCast newsletter today...
"Home Solutions of America, Inc. (Nasdaq: HSOA), a provider of restoration, construction and interior services to commercial and residential customers, held its eagerly anticipated conference call last week, which provided fodder for both the bulls and bears on the stock.
Bulls cite the progress the company has made with FIGA, as HSOA said it has moved closer to collecting receivables that could be as much as $49 million. The company said early November was the likely time when it would receive the undisputed portion of the proceeds. The company also said it expects to get an expanded credit facility, likely debt-based, which could range from $60 million to $125 million. HSOA also said it was comfortable with full-year analyst EPS estimates of approximately 60 cents in earnings, although it declined to provide guidance for Q3.
According to the Rodman & Renshaw analyst, who reiterated his Market Outperform rating after the call and $9 price target, shares likely sold off after the call as a result of expectations that there would be resolution on one or more of these items.
Note that shares of HSOA continued to appear on the Reg SHO list, indicating a high level of fail to delivers. Effective October 15th, the SEC will change the rules of Reg SHO, requiring that all naked short positions must be closed out within 35 consecutive settlement days of October 15th. If a security becomes a Threshold Security after October 15th, all fails to deliver must be closed out within 13 consecutive settlement days.
The rule change could help HSOA, which has more than 16 million shares short. Shares ended the week at $3.39, up 36 cents."
Flatsixer
Flatsixer2@Yahoo.com
