HOM, HOM SWEET HOM

HOM

HOM announced results last night and I thought the results were reasonably good. The market however, is disappointed that it is not increasing its full year guidance (0.42-0.46) and the stock went down this morning. It appears to me that management is playing the game of UPOD ("under-promise, over-deliver"). At this level, it is traded rather decent valuation (about 14X of its 06 earning, with more than 50% growth). I am thinking to add some here. My initial target is $10.

PRLS

I sold my remaining position of PRLS this morning. The trim done yesterday prove to be correct as it went down pretty hard. The quality of earnings is one of the most difficult thing to assess for small investors, certainly including me.