Hammond Power Solutions Inc T.HPS.A

Upcoming Earnings

[retiredcf]

Going into earnings, do you think that Hammond Power Solutions is a safe hold? I have a 5% position at $103.00.

We like its current levels for accumulation, and a lot of its recent troubles from stock-based compensation have likely been priced in. Another consideration is since its price has actually decreased since its last earnings, SBC could act as a slight tailwind on its earnings, and this could be beneficial for the name. We would be comfortable holding through earnings. (5iResearch)

[blindpig]

The share price has fallen from $146 Q1 end to $111 Q2 end so about $35 decrease.  There are 250K stock option/incentive shares so that means almost $9 million will be added to EBITDA partially reversing the $16 million hit for Q1.  This shouldn't have any effective, but probably will given the negaitive reaction last quarter.  Combined with a solid quater of sales and