Tuesday, May 1, 2012


HLXH (.039) could be a huge runner. Why? Real estate in the Hamptons is booming after a couple of years of slowing down. HLXH has no debt, no dilution, and managed to survive the downturn by cutting back on expenses. HLXH is positioned to take advantage of the New Luxury boom in the Hamptons by focusing on "Green building". Local, State and Federal subsidies are being offered for customers that "Go green". HLXH is also a partner in the "Green Alliance" that should lead to increased demand thanks to connections made. 2010 was HLXH's worst year with a 237K loss. The turnaround in the Hamptons housing market could make for a dramatic turnaround. They ended 2010 with 5 mil backlog and was a profitable co prior to the real estate downturn. In 2005 they did 8.4 mil in revs with a net profit of 1.5 mil or .03 eps. In 2007 prior to the downturn, they did 8.7 mil in revs with profit of over 600K or over .01 eps. Awareness is spreading and the release of the annual report should show just how undervalued HLXH is. With a float of 2.8 mil demand for the stock could result in huge gains. It is currently way undervalued with a market cap at a tiny fraction of revs and there are not many stocks trading at .039 with no debt, no dilution, and a real possibility of being profitable.

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