Home Solutions a Wreck

Editor's note: "Bricks and Mortar" is a mock portfolio created by reporter Nicholas Yulico that is meant to help generate real estate and gaming-related stock ideas. In keeping with TSC's editorial policy, Yulico doesn't own or short individual stocks.

Home Solutions of America(HSOA Quote - Cramer on HSOA - Stock Picks) continues to find ways to disappoint investors.

The stock, which I've flagged as overvalued in the Bricks and Mortar mock portfolio since April, recently was down 15% to $1.69 after the construction firm said it will not be filing its quarterly results on time due to an ongoing internal investigation of related-party transactions. The company's earnings report and conference call had been scheduled for Thursday.

I've issued numerous warnings about Home Solutions this year as the company's dealings became increasingly opaque and questions surrounded an acquisition from last year.

Shares have reflected this trouble, plunging 66% since the beginning of the year. Nonetheless, some investors have continually failed to see the writing on the wall.

I've received endless hateful emails over recent months, blaming me for somehow destroying this stock. It's a typical "shoot the messenger" mentality from people who refuse to cut their losses and instead blindly follow horrible management teams.

The company's internal investigation partially relates to a record $100 million contract for a job in Florida. Earlier this year, Home Solutions failed to tell investors in the initial press release that the deal involved work on a real estate project that is partially owned by Brian Marshall. He joined Home Solutions after heading disaster-recovery firm Fireline Restoration, which the company purchased last year.

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