Little Engine, give it up!I have been told by more than one
person at the company that the reason for the delay in the
release of financials via the audit of the Firamada inc. was
because the same company who was doing the main audit of Firamada
inc. stopped, to audit the books for Myriad so that the
acquisition could go through.
<<I believe the .06 estimate..... plus or minus six
cents. Since no audit has been released on Myriad (indeed, sounds
like it isn't done yet, since they keep saying they are doing a
number of audits at once), .06 is a dream.>>
I for one am glad to see that the acquisition was given the
priority given the ability it gives the company to consolidate
their administrative operations as well as add a service or two
to their existing product line. The 6 cents isn't a dream, it is
a cold, hard, soon to be indisputable fact. Their explanation is
wholly plausible, and reasonable. Your analysis and reasoning to
support your claims, however, are neither.
<<Do you really believe Myriad numbers provided to Ira
by the guys who didn't bother to pay taxes and were liable for
millions if they didn't sell?>>
Do you really think that such a transaction would go through
without a complete and thorough audit of Myriad's books? I guess
you forgot to mention that the audit of FAMH is being done by an
independent Fortune 500 firm, who also did, yes I say that in the
past tense, the audit of Myriad. I quote, verbatim, the Letter of
Intent dated December 29, 1997, prepared by FAMH's legal council
Leibman & Oesch, LLP:
Paragraph 1. section b. subsection vii.
"The status, existence, and proper description of Myriad
Employment Services assets, liabilities, inventories, accounts
receivable, and net worth."
section d. subsection ii.
"The absence of any untrue statement of a material fact
with respect to financial and other information provided by
Purchaser."
Paragraph 13.
". . .The valuation of Myriad Employment Services, Inc.
and the amount of consideration to be paid by Purchaser is
subject to investigation by Purchaser contemplated by this letter
of intent and to verification of financial and other information
to be provided to Purchaser in accordance with this letter."
Although the LOI isn't the actual sale agreement, LOI's and
the provisions therein are mostly duplicated in the final papers
and contractually binding.
<<Six cents would be $2.4 million on 40 million
shares... and firms in the same field as Myriad (Administaff,
ESOL, etc.) don't make nearly the same kind of profit margins
they are claiming. Although I am sure you have compared them
already, right Jin? Profit margins higher than anyone else...
sounds familiar, huh?>>
Not really, it has been stated more than once, and both
publicly and privately, that the audit for Myriad showed a net
profit of 1.8MM with sales of approximately 45MM. That's a 4
percent net, which stays in line with the numbers you cite. By
the way, Myriad's core business is different from Firamada's, and
their margins are necessarily smaller. Alot of the companies that
you have cited are either in the same business as Myriad, or do
the majority of their core revenues from the lower end of the
margin spectrum, ie lower end administrative, read clerical, and
light industrial, factory temps. I'll bet you a dollar to donuts
that an insurance underwriter makes more than someone who stands
next to a plastic injection molding machine.
You cite ESOL, who interestingly enough, has a current eps of .13/share with about 31 million shares outstanding and is trading at a PE of about 40. They also have price/sales ratio that is 8 times lower than industry averages, negative 82 percent income for the year and a net margin of only 1/2 percent, 6 times lower than industry averages, and they are in the exact employee leasing business as Myriad. Hmmm, a PE of 40!
<<I still want to know how FAMH happened to make exactly
the same revenues (about $4.2 million) each half of last year,
while making exactly the same profit margins (about $1.2 million)
as well. Well, that's what they're claiming, anyway.
Does anyone think the "corporate heirarchy" story
will come out at 10 a.m. Monday, on time?>>
There are many plausible explanations and the audit will
either confirm or deny the current speculations. And yes, I do
believe that it will come out on time.
ps. I'm not sure that Immuno vs Moor-Jankowski would apply. First, Firamada's state of incorporation is Texas, and since the Supreme Court, after having clarified the boundaries for defamation and libel left further case by case tests up to the individual states to decide, that particular ruling would only have a minor effect.
Also, that ruling fractured the NY state Supreme court with each judge handing down a different statement after the decision.
Jin. |
