This excerpt taken from the HOFT 10-K filed Feb 28, 2007.
The Company may engage in acquisitions and investments in businesses, which could disrupt the Companys business, dilute its earnings per share and decrease the value of its common stock.
The Company may acquire or invest in businesses that offer complementary products and that the Company believes offer competitive advantages. However, the Company may fail to identify significant liabilities or risks that negatively affect the Company or results in the Company paying more for the acquired company or assets than they are worth. The Company may also have difficulty assimilating the operations and personnel of an acquired business into the Companys current operations. Acquisitions may disrupt the Companys ongoing business or distract management from the Companys ongoing business. The Company may pay for future acquisitions using cash, stock, the assumption of debt, or a combination thereof. Future acquisitions could result in dilution to existing shareholders and to earnings per share.