Home Solutions of America, Inc. [[hsoa]] is a big target of numerous short sellers who allege that the company is almost entirely fraudulent. Management of course insists that this is not true. Perhaps the biggest critic of HSOA is StockLemon, a website run by Andrew Left, a short seller. He is holding a conference call to discuss his newest accusations of fraud against Home Solutions. While Left has been criticized for his tactics, I should note that he has won multiple defamation and libel lawsuits brought by previous corporate targets (to my knowledge he has never lost such a lawsuit). In other words, he tends to speak the truth (or at least does not outright lie). With regards to HSOA’s honesty, even one hedge fund manager I know who is long HSOA admits that there is a possibility that the company is fraudulent.
For my part, I asked Andrew Left to disclose during his conference call exactly how much he is short HSOA. He said that he would. One problem I have with him is that he does not normally disclose which of the stocks he mentions on his website he is or is not short. I always do that.
Reprinted below is his press release regarding his conference call:
Citron Research to Hold Conference Call on Home Solutions of America
August 2, 2007
Los Angeles, CA.- Citron Research, a leading provider of information on the small
cap markets, will hold its first ever conference call to discuss the current state of
affairs at Home Solutions of America (Nasdaq:HSOA) on Monday August 6 at 11:00
am (Eastern). Editor of Citron Research, Andrew Left, will host the conference call. Left states,
“It is important for all investors, whether long, short, or curious, to listen to this
conference call as it should give them a deeper understanding of the company.
Furthermore, it will bring up some interesting questions that require substantive
answers from management on their investors’ call on August 8th.
Among some of the topics addressed in the conference call will be:
The August 2nd ruling regarding responsibility of insurance companies in NO.
The effect of the recent housing market/credit crunch on Home Solutions
The many accusations of fraud against the company
Transparency of receivables status and collect ability
Analyst coverage of the stock
Corporate Credibility at Home Solutions of America
A formal invitation to the call will be sent to: Securities and Exchange Commission,
NASD, and NASDAQ.
Citron will also hold a Q&A period. Citron will answer all substantive question.
All questions must be emailed beforehand to email@example.com
Dial in instructions for the call are
US and Canada Dial-in: 1-800-391-1709
International Dial-in: 001-310-539-2229
Conference Bridge#: 768274
Disclosure: I hold no interest (long or short) in HSOA. My disclosure policy has never been accused of fraud, although it did once steal a cookie from the cookie jar.
0 thoughts on “Home Solutions of America (HSOA) v. Stock Lemon”
So what you are saying is that Andrew Left contacted you and asked you to post this withouut doing any homework on his actual attacks of HSOA.
Can you tell me why he changes his accusations, or why HSOA has not been targeted by SEC as a fraud?
Was this hedge manager by chance also a contact of Andrew Left, who has managed to skirt the law but was stripped of his securities license for fraud, bankrupted the company he was CEO of prior to starting blogging and stole checks to begin Stock Lemon according to court filings.
Just checking to see if you did your homework or if you are getting suckered in to make Andrew Left look good.
This is the type of comment that makes me tend to believe Andrew Left. It is the same type of comment that people made all these years against Manuel P. Asensio (an outspoken shorter of stocks). It involves hyperbole and innuendo and unproven assumptions.
I’ll address your comments:
1. Andrew Left has never contacted me. I contacted him because I wanted him to disclose his exact stake in HSOA. I believe that he should disclose more clearly when he is short a stock.
2. I have no opinion of whether HSOA is a fraud or not. Frankly, the only reason I am involved is because it is entertaining. If you rely upon the SEC to find fraud, then you, sir, are a fool. The SEC generally does not investigate until after fraudulent companies implode (cf. Enron, Xybernaut, etc.).
3. The hedge fund manager I mentioned is LONG the stock. She hates Stocklemon (and has previously made money by being long another stock that Andrew Left maligned).
4. As far as homework, I did enough homework to find out that Left has prevailed in two libel lawsuits filed by companies he targeted. The outcome of one of those lawsuits (by Imergent) was not freely available and I paid the L.A. Superior Court to get a copy of the decision. Numerous companies he has targeted have deserved his ire and have since de-listed or gone bankrupt.
5. I have not seen any solid evidence that Left did anything besides run a company that failed (and that may be a different Andrew Left). Searching the SEC brings up no evidence of any actions against him or the StockLemon website. Searching the web likewise brings up no credible evidence for him losing his securities license.
THE SAME ANDREW LEFT THAT YOU HAVE BEEN TALKING ABOUT -WAS FOUND GUILTY OF FRAUD AND DECEIVING HIS INVESTORS, AS WELL AS NOT PAYING HIS EMPLOYEES BACK WHEN HE OWNED DETOUR MAGAZINE.
-IT’S REALLY NOT HARD TO FIND THE EVIDENCE- THAT IS….IF YOU ACTUALLY TRY. AND KNOW HOW TO RESEARCH- i doubt if you will print this because it is true., and further it really isn’t hard to do.
If you really believe Mr. left tends to always tell the truth.
You will believe anything, it’s not hard to refute each of his points, each point he makes has no validity after a little due diligence.
HSOA is a fraud….and if you do any homework on the company, it’s managment and business practices, you will find it obvious. I am not here to make your opinion for you, just to simply state that when HSOA acquired Fireline Restoration, they didn’t complete the audit until months after the ink was dry….how can you put your money into a company that does that? HSOA had it’s own problems before the acquisition, but bad went to worse when they took on Fireline Restoration – take a hard look at the Marshall’s and Tom Davis – they have some serious skeletons.
Andrew Left is cool!