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Thursday, August 23, 2007

I don't consider myself to be a 'conspiracy theorist', by any stretch. I don't own, nor have ever worn a tinfoil hat. BUT.....

Things with our beloved HSOA have truly taken a turn for the weird. Just hours before HSOA confirmed my suspicions, and released the details of their Tampa project, Roddy Boyd of the New York Post put out another piece of trash on the company stating that a particular sub contractor had not been paid and the company owed him 50 large. If you are taking a course in journalistic ethics, or stock manipulation, this "story" (and it truly is a yarn) might serve as a good thesis paper:

(http://www.nypost.com/seven/08232007/business/builder_may_be_going_bust.htm)

I could spend about 10 seconds discounting this, but analyst Joe Giamichael over at Rodman and Renshaw said it best:

"Also of note to investors, there was another negative article published this morning in the Post regarding a contractor dispute. The article attempts to establish Home Solutions as illiquid and unable to pay its subcontractors. The company finished Q2 with over $4mm of cash, $51mm of accounts receivable - net of payables - and significant borrowing capacity remaining. The article is focused on a $50k contractor dispute, which should serve as a poor basis for drawing larger conclusions relative to the $50mm Q2 reported revenues and our $198.7mm FY 2007 revenue projection. Subcontractor payment disputes are very common to this industry and almost always revolve around the quality of work relative to the contract agreement. Investors should remain focused on the improving fundamentals, attractive valuation and growing construction services backlog."

The interesting thing here is that Roddy Boyd has attacked the company twice now:
(http://www.nypost.com/seven/07242007/business/retorer_business_roddy_boyd.htm)

So has Hank Greenberg:

(http://blogs.marketwatch.com/greenberg/2007/04/home_solutions_.html)


So has Jim Cramer:
"Home Solutions of America (HSOA): 'There's a monster short position ... I will not recommend this stock with the possibility ... of causing a short squeeze.'"

(http://seekingalpha.com/article/22452)

So has Nicholas Yulico, a cramer lackey at the street.com, perhaps best known for his 2nd degree felony charge that resulted from a college freak out where he and a buddy destroyed a couple of dorm rooms and severely beat some other students:

(http://www.thestreet.com/s/home-solutions-reveals-ugly-details/newsanalysis/homebuildersconstruction/10374797.html?puc=_tscs">http://www.thestreet.com/s/home-solutions-reveals-ugly-details/newsanalysis/homebuildersconstruction/10374797.html?puc=_tscs">http://www.thestreet.com/s/home-solutions-reveals-ugly-details/newsanalysis/homebuildersconstruction/10374797.html?puc=_tscs)

Ok, so what is my point? If these guys all agree about Home Solutions, it must be a really bad company, right?

What if all three of these guys had been subpoenaed by the SEC regarding previous consorted short attacks? We KNOW they run together, the SEC proved that by issuing Subpoenas. Where is the ax that Roddy is grinding this morning, just hours before the long awaited release of detailed information on the Tampa Project? Why is he so focused on HSOA?
(http://www.thesanitycheck.com/BobsSanityCheckBlog/tabid/56/EntryID/109/Default.aspx)
Maybe these media outlets are doing the bidding of a higher power? Maybe they know the other shoe is about to drop in the form of a payment of FIGA and the subsequent improvement of the balance sheet? Lord only knows, but when 3 guys who have been subpoenaed for previous work on beating down a company team up again on a different company, it HAS to raise eyebrows.

Im gunna need ALOT of tin-foil.

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