Home Solutions of America (HSOA)

Company

HSOA 1-year chart HSOA 1-year chart

"Home Solutions of America specializes in restoring and rebuilding homes and businesses that have been damaged due to fire, weather or other natural disasters. In addition, we serve growing and densely populated areas by providing services for housing and business development" Says Frank J. Fradella, Chairman and CEO of Home Solutions, "We have worked hard to transition Home Solutions from a company relying on catastrophic events to a broad-based diversified construction services company." (company website)

HSOA 6-month chart
HSOA 6-month chart

Buy

It would seem that HSOA's long downtrend reversed with the low in March. Subsequent down-cycles have made higher lows, and in May the 50-day moving average turned up and is now ready to cross above the 200-day moving average. There was a sharp pullback after the peak at the beginning of June, precipitated, perhaps, by blogs, putting the current price just above the averages.

  • Price momentum (PPO) — long steady increase until pullback at the beginning of June
  • Relative strength (RSI) — fell to just below neutral, but is ticking up again
  • Trend (ADX) — weakened during pullback, but buying pressure (+DI) is ticking up again
  • Volume — steadily increasing over past two months

Based on technical analysis, MarketEdge calls HSOA a "strong buy" in a "strong upward trend" that is "oversold" and at a "good entry point."

Sell

loss Bottom line
-4%

Home Solutions broke below its 50-day moving average recently, and daily volume has dropped to a mere fraction of normal. The trend (ADX) has continued to weaken, to the point of non-existence, and relative strength (RSI) is flat. I decided to bail with a small loss and put the money into something a bit more promising (RNOW).