This is a repost of an item from an HSOA forum. I am simply reposting this because I thought it was interesting. I am not saying any of this is true or false, but it is food for thought. The post can be found here: (http://www1.investorvillage.com/smbd.asp?mb=4195&mn=4648&pt=msg&mid=283471)

Stocklemon Said: "In the story we noted that insiders sold millions of dollars in stock at very high prices – on the heels of a highly misleading press release, in which the company trumpeted a “contract in New Orleans” to sell mobile homes. Turned out the counterparty to the contract was a company that Home Solutions itself had just established and funded, a fact that Home Solutions conveniently failed to disclose."

FALSE. Company PR disclosed the SECURED loan to ARH. Company did NOT "establish" ARH.

Stocklemon Said: "The shareholder lawsuits predictably followed."

LOL. u mean those POS suits with no plaintiffs? LOL

Stocklemon Said: "In the late afternoon of August 14, Home Solutions filed an S-3 registration for insiders to sell over 5 million shares of stock. Just two hours later, the company released a quarterly report that seemed decent at first glance, until you take a deeper look.
Check This Out!!
If you read closely in the filing you will see this paragraph on page 21.
“The Company also generated revenues from one of its major restoration customers for services, including standby and mobilization of its labor force, to be used on specific projects as specified in its master services agreement with the customer. The agreements allow for billings up to $40,000 (40 million) for specified services, which are estimated to be complete during 2006.”
http://www.sec.gov/Archives/edgar/data/855424/000100329706000346/hom10q1.htm
HOLD ON!! It appears as if Home Solutions is booking revenue for work that has not even been performed, notice the phrase “to be used…”"

These idiots obviously have a problem with reading comprehension, and probably never graduated high school. What the excerpt actually says is that HSOA gets paid for "standby and mobilization of its labor force...." Obviously, if these folks on "standby and mobilization" status, by definition they are "TO BE USED." they are ON STANDBY, Duh!
Stocklemon Said: "This is furthered on the following page when we get a clearer understanding of why Home Solutions showed such great operating margins. As stated in the filings:
“HSR of Louisiana generated higher margin fees associated with contracts to commit a portion of its labor force with its major recovery/restoration customer”
Again we see the words “to commit”, thereby in the future. That explains the high margins. It is easy to have high margins when you book work that you haven’t performed."
The author tries to parlay his/her obvious error into another insidious bullshit claim, i.e., that HSOA is booking phantom income. What a joke! Once again, anyone with an 8th grade reading ability can figure out that the reference to "contracts to commit" is to those same contracts referenced earlier that pay HSOA for "standby and mobilization" of its workforce. this is not at all unusual in the disaster recovery and restoration services field. check with SGR if u doubt that...

Stocklemon Said: "The company who they are booking this revenue with is C&B Services, which itself has been merged into an OTC BB company named Charys (OTCBB:CHYS). This is the $40 million customer who allows HSOA such terrific margins. Here is a look at the pedigree of the directors of Charys (parent to C&B Services):
The CEO of CHYS is Bill V Ray Jr. Mr. Ray was the CEO of now bankrupt Able Telecom that was investigated by the SEC for accounting irregularities. http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=104&STORY=/www/story/12-01-1999/0001086911&EDATE=
Able was best described by Manny Asensio in this series of articles
http://asensio.com/Reports/CompleteRecordCompany.aspx?CompanyId=103&CompanyName=Able+Telcom+Holding+Corp.&IsArchived=true
Morgan Ralph Delucia, who was investor relations for Able Telecom, is now investor relations for Charys.
Alec McCarty was a former director of Able Telecom is now a director for Charys.
The head of the audit committee for CHYS is Richard Mangiarelli, who was also the CEO of two publicly traded companies :
GBRC- now trading .011
http://finance.yahoo.com/q?s=GBRC.OB
CBCL- now trading .0043
http://finance.yahoo.com/q?s=CBCL.OB
Stocklemon would like to cross reference the HSOA to the CHYS filing but unfortunately, CHYS has submitted a late notice for their 10K.
http://www.sec.gov/Archives/edgar/data/845879/000114036106010718/0001140361-06-010718.txt"

LOL. these lemonshysters fail 2 appreciate that HSOA's historical numbers are audited, the SEC never penalized Ray for anything or recommended that he be prosecuted for anything, and -- MOST IMPORTANTLY (to borrow from SL: :HERE'S THE BEST PART!)-- with the Fireline acquisition, HSOA is large enough to bid and work jobs without C&B!!!!! who cares about C&B???
Stocklemon Said: "So this is the company HSOA is dependent upon for 25% of its annual revenue, most of which is anticipated to be undertaken in the second half of the year."
another FALSE statement. at no time has HSOA ever indicated that it is relying on C&B "for 25% of its annual revenue...."

Note that SL has no link to any such statement from HSOA mgmt (surprise, surprise...)
Stocklemon Said: "Stocklemon has serious doubt that HSOA will ever generate $40 million worth of real business from CHYS."

LOL. Yeah, SL's "serious doubts" are about as meaningful a commentary on HSOA as anything Alfred E. Neuman might have to share about the company.... LOL!

Stocklemon Said: "Furthermore, the status of the work that was recorded as revenue needs greater clarification, as it appears that the company has booked revenue for work not performed."

already exposed this lie above.