Keep Those Home Fires Burning
Dallas based, HOME SOLUTIONS OF AMERICA INC [HSOA], a provider of restoration and rebuilding services for commercial and residential properties in the U.S., plummeted 14.8% closing at $5.18 after announcing its third quarter results. The company reported revenues from continuing operations for the quarter ended September 30th, were $49.1 million, up 159% from the revenues from the same period last year. Third quarter earnings increased to a record $8.1 million, or $0.18 per diluted share, compared to $0.08 per diluted share for the same period in 2005. However, this was two cents below the “street” estimate of $0.20 per share (based on only one analyst!). While Accounts Receivable is up sharply for the quarter (2x), it is proportional to the increase in Revenue. The only significant negative in the announcement was the revision of the projected full-year revenue from $160 to $165 million down to $155 to $160 million. The company’s projection for revenue growth in 2007 is 30% over 2006, so with a P/E ratio of about 15, this looks like a great buying opportunity.
ISIS PHARMACEUTICALS INC [ISIS] dropped 8.9% closing at $11.32 with heavy insider selling taking place. Not a good sign! Some concerns regarding long term safety issues with ISIS 301012 have been raised by Marc Lichtenfeld. To be frank, the sample sizes so far are not very convincing when it comes to safety issues in either direction. The slide show from the conference call can be found here.
Daily Sector Performance Chart
It was another strong day thanks to some good quarterly reports (WAL-MART [WMT] reporting better than expected earnings, and INTEL CORP. [INTC] being ahead of schedule with the new quad-core processors, pushing the DJIA to a new record), the Producer Price Index being down more than expected (PPI ex food and energy had the biggest drop in 13 years!) and the continued decline in oil (December light sweet crude settling at $58.28 per barrel), prompted a very broad rally.
The average gain in the SI universe of 3,549 stocks was 1.22% with 76.5% of the members posting positive gains for the day. The outlier sectors were Construction (up an incredibly strong 3.9%), Railroads (down 1.2%) and Tobacco (down 1.1%).
|
Company |
Ticker |
Close |
Pct Chg |
| WCI COMMUNITIES INC | WCI | $17.80 | 12.6 |
| HORTON (D R) INC | DHI | $24.50 | 9.5 |
| NVR INC | NVR | $584.50 | 9.5 |
| RYLAND GROUP INC | RYL | $47.57 | 7.1 |
| HOVNANIAN ENTERPRISES INC | HOV | $30.99 | 6.5 |
| KB HOME | KBH | $47.56 | 6.2 |
| COMSTOCK HOMEBUILDING COMPANIES INC | CHCI | $4.97 | 6.0 |
| STANDARD PACIFIC CORP | SPF | $24.04 | 5.2 |
| PULTE HOMES INC | PHM | $30.35 | 5.1 |
| BEAZER HOMES USA INC | BZH | $44.44 | 4.9 |
| TOLL BROTHERS INC | TOL | $28.62 | 4.8 |
| MDC HOLDINGS INC | MDC | $53.77 | 4.8 |
| MERITAGE CORP | MTH | $44.89 | 4.8 |
| AVATAR HOLDINGS INC | AVTR | $68.04 | 4.7 |
| LENNAR CORP | LEN | $48.25 | 4.3 |
| M I HOMES INC | MHO | $35.38 | 4.1 |
| ORLEANS HOMEBUILDERS INC | OHB | $13.00 | 3.9 |
| CENTEX CORP | CTX | $52.50 | 3.9 |
| INSITUFORM TECHNOLOGIES INC | INSU | $25.03 | 3.3 |
| DYCOM INDUSTRIES INC | DY | $24.85 | 3.1 |
| BUILDING MATERIALS HOLDING CORP | BMHC | $25.72 | 2.7 |
| CAVCO INDUSTRIES INC | CVCO | $34.62 | 2.5 |
| CALIFORNIA COASTAL COMMUNITIES | CALC | $18.22 | 2.2 |
| MASTEC INC | MTZ | $10.63 | 2.0 |
| BUILDERS FIRSTSOURCE INC | BLDR | $16.32 | 1.9 |
| STERLING CONSTRUCTION CO INC | STRL | $23.65 | 1.8 |
| CONSOLIDATED TOMOKA LAND CO | CTO | $66.07 | 1.7 |
| INFRASOURCE SERVICES INC | IFS | $21.68 | 0.6 |
| FOSTER WHEELER LTD | FWLT | $49.84 | 0.3 |
| DOMINION HOMES INC | DHOM | $5.99 | -0.5 |
| PERINI CORP | PCR | $31.97 | -0.9 |
| HORIZON OFFSHORE INC | HOFF | $15.03 | -3.5 |
