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Non-Tech : Home Solutions of America (HSOA), The best is yet to come
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To: JSB who wrote (693)8/11/2006 7:10:27 AM
From: jh26pt2  Read Replies (1) of 20808
 
What amazes me is how many people are willing to put them in the dog pound over something so trivial.

I think it's a litle different than that. I think that HSOA appeared on the shorts' radar screens after its huge runup this spring. The decision to short HSOA en masse was probably made before the ARH PR was ever issued. When you short a stock that has risen in such a short time, you know that you are going to have plenty of fuel on the way down from people who will cut and run with a quick profit.

By coincidence, at the same time the decision was made to short, HSOA gave the shorts two pieces of ammo -- the ARH PR (which really wasn't misleading, as you point out) and the insider sales (which is also a non-issue, as the total holdings of the insiders in question actually increased after they "dumped" their shares). These stories gave the shorts a story, a fundamental-sounding reason to short HSOA. And I think it worked out for them better than even they probably thought possible. Had HSOA not run up so much in the preceding months, both "stories" probably would have come and gone without much reaction.

It's not a matter of these stories being the matter of the fire. The "matter" was the simple fact that HSOA had run up so far, so fast. The ARH PR and the insider sales were simply the matches used to light the fire. I guarantee you, had those stories not been present, the shorts would have found some other match.
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