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suchadeal,
I could not disagree more with my friend Cat. The company has to be quiet and refrain from commenting on specific line item issues regarding the "imminent" NASDAQ listing.
I understand that the conference call had a significant amount of institutional investors on the line. Further, I have heard that the possibility exists of several buy recommendations from a major house or two contingent upon the NASDAQ listing.
What Cat must understand is that HOMS came to the market the expensive, most proper way: IPO. HMSK, however, went the inexpensive route of the reverse merger. As such, there is a tremendous amount of due diligence to be done by NASDAQ in extending a listing. The underwriter/market scrutiny done in advance of an IPO like HOMS was not there for HMSK.
Many of your institutional investors are precluded by investment guidelines from purchasing OTC BB plays. However, these institutions will look for strong OTC BB companies that make the national listing index.
I look at this situation as a matter of diminishing risk: That is, the downside risk here is not tremendous. This is a viable business unlike the bulk of the OTC BB world. The upside potential here is tremendous. Consider this:
HOMS is operating, at these prices, with a market cap of $2B or so. HMSK is operating at a few hundred million at these levels. From a comparative standpoint, given the number of listings shared by both companies, the timeliness of updating those listings, other ancillary services, etc. a case can be made that HMSK should have at a minimum 1/4-1/2 the market cap of HOMS. To me, that suggests a price in the $15-20 is realistically achievable in a short fashion.
I had bought this when it dropped to $4 7/8 and again around $7.5...I'm quite pleased and more than willing to watch this unfold. Besides, I was impressed with the new CEO and his incentive package...he left a higher paying job at Dole for these incentives...he must have liked what he saw here or was looking for any reason to bail Dole. I'll give him a chance to prove himself..should be fun.
Mark |
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