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.