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Non-Tech : Home Solutions of America (HSOA), The best is yet to come -- Ignore unavailable to you. Want to Upgrade?


To: stckn8r who wrote (64)7/20/2006 5:45:02 PM
From: FHM  Read Replies (1) | Respond to of 20808
 
welcome aboard, stckn8r.

very interesting....

as your broker suggests, the issue then becomes:

are the folks interested in picking up the shares doing so to undertake one last ferocious short-selling push in an effort to shake out longs and then cover as low as possible OR are they scrambling to cover substantial short positions now (or at least sooner than later)

I don't know the answer, but will dig around a bit and see if a few investor friends with a lot more experience and savvy than I possess have any insights

thanks 4 the post



To: stckn8r who wrote (64)7/20/2006 9:45:29 PM
From: JSB  Read Replies (1) | Respond to of 20808
 
Personally, I'd hope it was scenario B,
but I'd sure be surprised if was A. With
over 29% of the float short and an unknown
number of FTD's, you'd think everything would
already be priced in.

Of course, I've been wrong before.



To: stckn8r who wrote (64)7/21/2006 1:11:46 AM
From: loanlady86  Respond to of 20808
 
And this message has been posted on the "new" version of the old Yahoo message board.



To: stckn8r who wrote (64)7/21/2006 6:34:21 AM
From: jh26pt2  Respond to of 20808
 
<<Unfortunately, he said that, in his experience, the majority of the instances was for shorting purposes and in most cases the PPS took big hits. He did not think it was a good sign. I am not so sure about his analysis as todays performance seem to indicate more buyers wanting to cover at low prices while there were very few sellers. Also there is a very large outstanding % of short shares already.>>

It would be interesting to know more about the circumstances of the prior cases -- did any of those other companies already have a huge short interest?

I can see both arguments:

(a) Shorts are trying to drive HSOA into the low single digits so that they can cover at extremely low prices (or not even cover at all, depending on how far down they drive the company) -- in this case, the already high percentage of shorted shares would be a negative sign;

or

(b) Shorts are scrambling to cover while they can because of the great number of PPS catalysts in HSOA's short (and long) term future.

Ultimately, I don't know that this issue will matter. As long as HSOA's management stays focused on their goal of building the best HSOA that they can, and continuing to grow the business at the rates that they have, then issues like these will fade into the background. That being said, it is an interesting issue, and thanks to all who have dug for more information.