Hsw International, Inc. (MM) (HSWI)

Tim Sykes is loosing some money than.

Tim Sykes shorting HSWI

How bout them apples smarty pants..

Nice news ~ HSW International Joins in Founding Sharecare, Inc. and Will Provide Technology Development Services To Build Its Web 3.0 Platfo

HSWI is continuously burning shareholder value. Simple indicator is stockholder equity going down over the last 4 quarters from $32.6, $24.5, $21.9, $19.3 million. Net tangible assets look even worse $22.5, $18.7, $16.3, $13.6 million.

Revenue shrank from $116 to $88 thousand. With 53.6 million shares outstanding, revenue per share TTM is only $71.1.

Six month revenue ended June 30 was $214,000. That's a yearly run rate of $428,000.

This is only $0.008 revenue per share (yeah, less than a penny). With a hypothetical 10% profit margin (HSWI is actually lost 6 cents per share from Jan to Jun 2009, about 7 times revenue!), a P/E ratio of 738. Wow!

Ok, let's try to be fair and see what HSWI could potentially do with its assets. (BTW, they have about $14 million sitting in their cash accounts. That's a value of $0.26 per share. Admittedly, a comfortable cushion.) Now assume, they could generate a very nice 10% ROA (Google has 14%, Yahoo! 0.10%, HSWI currently -72%).

That would be a hypothetical $2.1 million net profit, which translates into $0.04 per share. Award a P/E multiple of 10 (pretty nice for a non-existing hypothetical profit of a cash burning company) and you get $0.40 of (highly optimistic) value per share. HSWI is worth much less.

This is not exactly a candidate for shorting, however, buyers beware!

Sources: SEC filings & SmartMoney.com

Disclaimer: I meanwhile carry a short position of 4000 shares.

I'm not arguing that it's not going up. :0) There just doesn't seem to be any known reason for it. Clearly someone is buying a lot of it and who ever is doing that presumably knows something the rest of us don't. I guess that's a good thing but still this is a pig in a poke, hard to commit a lot of capital based on guessing.
fAt

..but it`s building higher lows the last weeks..perhapse we`ll get another pr when this thing completed a real run to get the pps located in higher areas..?

Well that's the problem it doesn't keep going up. It rallies then tanks. Buy at .28 and sell at .35 I guess. Hard to know when there is no info.
fAt

good question..but who cares, as long as the pps is going up

Any one have a clue what's going on with this?
fAt

HSWI CHART

HSWI CHART

Another HSWI WEEKLY CHART

HSWI CHART

looks like it will pop this week

Getting ready here!!!eom

Not too bad of a quarter. Still nothing from China, which is surprising. Seems that Brazil is going to have to carry us for a while. DS also seems to be where most of the attention is going. All in all, burn rate is slowing and revenue is growing. I still think there is going to be a need for a secondary, hopefully at at a much higher price than now.

Looking for the 10-Q tomorrow. Can they deliver a surprise revenue number? What is the burn rate with the addition of Daily Strength? Will Daily Strength revenue grow and support all of the upgrades? Time will tell.

This thing just needs to give a reason to commit capital. Any real demand will send us up rapidly. The 10-Q should be out this week. It will be real interesting to see the cash position and what the burn rate is since the 10-K. Need to see some revenue out of china since the entry cost was so high. Daily Strength may be the real impact on this quarters numbers. My question is, why hasn't Eastern Capital bought any shares since October? Capital Research hasn't made a move either. Zeke is still holding 600,000+ and rode it all the way down to 0.08 without selling a share. Makes me wonder what the hell is going on.

Going up slowly but not being noticed.

Hey,Hey! Look at this stock! Sneakin up without any one noticing.One of the top performers friday.Very tight spread and hard to get all the shares that you want even at the ask.Can you imangine what this thing would do if there were volume.

ya,we really would like to hear something but the pps is still holding well despite the market downturn.

hopefully some good pr will come out soon. Lets get the volume up again!

American Bulls
HSW INTL INC
Daily Commentary


Our system posted a BUY CONFIRMED today. The previous SELL recommendation was issued on 04.14.2009 (3) days ago, when the stock price was 0.2300. Since then HSWI has gained 4.35% .

BUY-IF is confirmed by a white candlestick with a higher open. The buying price is today's open ( 0.2199 ) according to the Rules of Confirmation.

Patience pays off. The market wavered a bit but finally confirmed the recent bullish formation. The dose of the previous day was not enough for a confirmation but today it is. The market opened with a gap-up and the day’s activity resulted in a close higher than the open. This is a valid confirmation criterion. The market seems ready for a new bullish move.

The slight failure of the previous SELL signal is currently confirmed, too. We closely monitor the performance of the signals, but a few shots missing the target slightly are inevitable when you deal with the stock market. However, such signal failures are more unlikely for higher rated stocks.

We hope that you bought this stock . Today you were supposed to watch the upward gap in the opening, wait a bit, feel the bullish tendency of the market making sure that prices stay over the opening price and then go long. Your benchmark was the opening price of the upward gap.

If you bought, continue to hold this stock until the confirmation of the next SELL-IF signal. You are on safe grounds as long as the future prices continue to trade above the benchmark price and if an emergency warning is not issued. What to do if you did not buy? Maybe, you did not have time to follow the session or you simply delegated the delicate job of confirmation to us. Well it is a bit late, but not too late. You may still find suitable prices for buying in the following sessions.

The market is currently cold for short-sellers. Avoid any short sales and cover the short positions immediately if there are any. We erred on the short side last time but we hope that this is just an exception.

Data provided by: End of Day Data



BUY
CONFIRMED


0.2400
+0.0300 +14.29%

Candlestick Analysis
Today’s Candlestick Patterns:
White Candlestick




Today a White Candlestick was formed. This represents normal buying pressure.
For more about this candlestick click here.

yea,not too many big blocks being offered and not too much of a spread.Could be a good bounce play.With any decent news at all,this thing will move,just a matter of time.

Looks like it might be heading back up

Any one watching this one?

Anyone know when the 10-Q is going to be released? Looks to be overdue.

I think we'll be seeing more here in the future.

Reminder:
World Book (http://www.worldbook.com/) is a Scott Fetzer company, a subsidiary of Berkshire Hathaway, Inc.

Wow what a bouncer!

I think you're right. The POSSIBILITY (not for sure) of the shares getting sold to the market definitely played into the decline today.

I found this post on another board, I think it explains it decently.

"Heres the problem imo FROM FILING....
In addition, the proposed amendments also reflect that after the proposed merger with Discovery, HSW would seek to distribute or sell a substantial portion of shares it holds of the Registrant(HSWI). The Registrant has a stockholder rights agreement and certain registration rights agreements that are proposed to be amended to allow for HSW to effect such distribution or sale. As a result of the consummation of such distribution or sale, the Registrant’s public float could increase.

http://www.hswinternational.com/secfiling.cfm?filingID=1104659-07-74801 "

I think there's a misperception that the news is bad. Knee-jerk reaction imo.

Any idea why this is selling off on the news, or is it related to something else.

Thanks EOM.

Yes all shares should be freely tradeable.

Hi and GL. Any idea whether the old INTN holders have tradeable shares yet? I saw some info. on another board but haven't been able to track it down again since....

Quite the pop we had today! In the environment that we're currently in, the fact that HSWI has China plans plus INTN does Hong-Kong-based educational business both boded well for HSWI.

Will be interesting to see if today was a spike aberration, or a start of a sustained climb. I kind of suspect the former...

I continue to buy more of this stock. I suspect that the pressure is due to floating some old shares or warrants. Not a value play, but definitely a longer-termer that has a great concept (and rapidly growing revenues/users)

This stock has been strangely under pressure since the merger, but I am appreciative for the opportunity to get shares that I consider cheap (sub-$8). This is a longer-term play for me, as it looks like their business is really gaining traction.