3SOF

Still holding from 2.58 back in August...my stop is pretty tight now, so it looks like this journey may end soon.

A double is pretty sweet, but searching for info on HOM is actually how I ended up finding out about this place, so maybe the return can't just be measured in dollars...

I haven't been posting here much, but I think I'm going to start being more active on the picking forum, I really like this place. Haven't decided if a premium membership is worthwhile for a small-time dude like me, as I only got to enjoy the 3SOF forum for a week or two...

With their continuing positive guidance, and their moderately aggressive acquisitions, it sounds like they know what they're doing.  In the absense of a total reversal of fortune, I'm holding long term on this one.

Prfsr Hal

We have more institutions holding which make it look pretty good.

http://www.nasdaq.com/asp/Holdings.asp?symbol=HOM&selected=HOM&page=holdingssumm ary

Awesome, still didn't get stopped out...still like this stock for the same reasons I liked it at 2.58.

HOM down big pre-market -12%!


http://biz.yahoo.com/prnews/051123/daw004.html?.v=37

Home Solutions of America Announces $26.7 Million Private Placement
Wednesday November 23, 7:00 am ET

DALLAS, Nov. 23 /PRNewswire-FirstCall/ -- Home Solutions of America, Inc. (Amex: HOM - News), a provider of recovery, restoration and rebuilding/remodeling services, announced today that the Company has entered into a material agreement to raise $26,675,000 through a private placement offering of common stock and warrants exercisable for common stock. The net proceeds of the offering after placement agent fees and other fees and expenses will be approximately $24.6 million and will be used to pay off $11 million in seller debt resulting from the acquisition of the assets of Florida Environmental Remediation Services, Inc., to pay off $7 million of existing mezzanine debt, and for working capital purposes. The offering is subject to standard closing conditions, including the receipt of all subscription funds and the approval of the listing on the American Stock Exchange of the common stock to be issued in the offering and issuable upon exercise of the warrants.


The offering consists of 4,850,000 units at a purchase price of $5.50 per unit, with each unit consisting of one (1) share of common stock and a purchase warrant exercisable for a 0.20 share of common stock. If the offering closes, the company will issue to the investors, an aggregate 4,850,000 shares of common stock and warrants exercisable for an aggregate 970,000 shares of common stock. The warrants, if issued, will be exercisable immediately, have a five-year term, and have an exercise price of $5.50 per share. In addition, the company will issue to the placement agent, Sanders Morris Harris Inc., warrants exercisable for 125,000 shares of common stock. The placement agent warrants, if issued, will be exercisable immediately, have a five-year term, and have an exercise price of $5.50 per share. In addition, the placement agent will receive a fee equal to 7% of the gross proceeds of the offering.

Home Solutions is a provider of recovery, restoration and rebuilding/remodeling services to commercial and residential areas that are (i) prone to flooding, hurricanes, tornados, fires or other naturally occurring and repetitive weather related emergencies; and/or (ii) experiencing robust housing development. The Company has operations in California, Texas, Florida, Alabama, Georgia, Louisiana, Mississippi and South Carolina through its five subsidiaries, Cornerstone Building and Remodeling, Southern Exposure, P.W. Stephens, Home Solutions Restoration of Louisiana and Fiber Seal Systems. Cornerstone is a leading supplier and installer of granite materials for kitchens and baths to national home centers, as well as national builders and remodeling companies, in the southeastern United States. Southern Exposure and related companies is a provider of cabinet and countertop installation services in the Florida marketplace. P.W. Stephens provides mold and asbestos remediation services, and fire and water restoration services in California, Florida and Louisiana. Home Solutions Restoration of Louisiana provides Recovery Restoration Services in Florida, Louisiana, Mississippi and Texas and Fiber Seal Systems is a national licensor of cleaning and fabric protection businesses.

Dirty deal that private placement.  Still, hoping that future results will absorb the big hit it took.  Holding for L/T

Prfsr Hal

Well, doesn't look like IBD #1 will help much...but I 'm still holding some long.
http://biz.yahoo.com/special/low1205_05.html

-Tug

I thought about HOM again when I was writing at NVAX thread, to see how these things happen:

QuoteThe highlight for NVAX is: «Democrats came in for harsh criticism themselves for holding up the defense spending bill, which includes equipment for the troops as well as $29 billion for Hurricane Katrina relief, $3.8 billion to prepare for an avian flu pandemic and $2 billion to help low-income people pay their heating bills.»

But the highlight for HOM is: $29 billion for Hurricane Katrina relief.

This caught my attention and I thought of taking a look at HOM. Here's what I see at this point:

Technical Analysis:



Remember I had TL1 as support when I first bought HOM? Well, the stock just touched it again and it is bouncing back. It is still long term bullish.

Fundamentals:

I don't have time to go deep into the fundamentals, but let's see the historic graphs for Revenues and EPS.

Revenues:



EPS:



If the company meets its internal projections, and at this point there's no reason to believe it won't, it has a forward earnings multiple of 11.6. The company is growing fast since 2003, much before Katrina. Katrina, Rita and Wilma just made it grow even faster, I believe.

HOM can be an attractive shelter in the current market environment. I can buy it with a stop on a close below TL1, which for today stands at $4.66, rising a bit everyday. Chances are the stock resumes the uptrend and makes new highs above $7, or at least close the gap at $6.42, about a 25% move from yesterday's close.

I'll buy it today for the 3 Stocks on Fire Portfolio, 6.66% of capital, as always (o not bid it up on the pre-market, a gap up, with the open above $5.17, could bring short term profit taking. I won't buy today if the open is set to be above $5.17, only tomorrow).

Hi David,

Is HOM forming a head and shoulder shape?

HOM cannot break the 9-EMA. It bounced back and touched the 9-EMA line. Then it resumed the down trend again.

I will not touch it unless it gives clear signal. Of course, KD is in oversold. But oversold could last very long.

Quote from: huayilu on December 21, 2005, 12:04:38 PM
Hi David,

Is HOM forming a head and shoulder shape?

It would have to be a quite imperfect one.

Quote from: shawFund on December 22, 2005, 12:01:45 AM
HOM cannot break the 9-EMA. It bounced back and touched the 9-EMA line. Then it resumed the down trend again.

I will not touch it unless it gives clear signal. Of course, KD is in oversold. But oversold could last very long.

I agree shawFund. You're basing your trading decision on the 9 day ema, I'm basing mine on the old ascending trendline providing support.

Yesterday HOM came down to touch the ascending trendline for the second time and is now ready to jump higher. The ascending trendline today is standing at $4.71.

I feel my bullish case on the stock would be greatly dimished if the stock were to close below $4.71. Therefore I'll sell HOM if it is set to close below $4.71.

HOM went down a lot on an intraday basis, thouched $4.56 (the last low point was $4.55) and then came back to finish in the green and above TL1.

Everything is set for the stock price to appreciate now.

I'll continue holding HOM, unless it is set to close below $4.74.

David, are you sure that your ascending trendline (TL1) providing support is correct?
looks to me that there is something wrong with your charting software or maybe your computer... here, take a look & compare...

--->If i'm right, that is the reason why i did not buy HOM...
--->I don't see any TL3.....And besides, your TL3 is my TL1[/color]
--->HOM is in downtrend mode forming a "Top HEAD & SHOULDERS"
--->I'd rather buy HOM @ $3.50 for better entry (support from the beginning of second quarter of 2003)

CHART2

David is using a linear chart, not a logrithmic chart.