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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services

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To: Warthog who wrote (20153)6/1/1998 4:25:00 AM
From: JIN CHUN  Read Replies (2) of 27968
 
Some interesting comparisons across the staffing industry:
updated as of today.

Industry average P/E ratio: 43.2
Industry average Price to Book value: 3.91
Industry average Price to Sales ratio: 0.67

Comparisons to projected revenue of 80 to 100MM for 1998:
Below is a compilation of companies in the sector with revenues
under $100MM using MSInvestor's finder.

ASGN: On Assignment
PE: 41.7
Sales: $112.9MM
Income: $9MM
Market Cap: $365.3MM
Mean recommendation: hold

ACSY: ACSYS inc
PE: N/A
Sales: $61.6MM
Income: (negative)$1.8MM
Market Cap: $154.2MM
Mean recommendation: strong buy

ASIS: ASI Solutions
PE: 25
Sales: $34.9MM
Income: $2.1MM
Market Cap: $54.9MM
Mean recommendation: strong buy

HIR: Diversified Corporate Resources
PE: 9.8
Sales: $35MM
Income: $2.6MM
Market Cap: $34MM
Mean recommendation: strong buy

JOB: General Employment
PE: 18.1
Sales: $34.4
Income: $2.8MM
Market Cap: $50.2MM
Mean recommendation: hold

JOL: Joule
PE: 13.6
Sales: $51MM
Income: $1.1MM
Market Cap: $14.4MM

MDIX: Medix Resources
PE: NA
Sales: $23.2MM
Income: (negative)$1.1MM
Market Cap: $9.2MM

SOLP: Soloman-Page Group
PE: 18.8
Sales: $38.7MM
Income: $1.3MM
Market Cap: $23.5MM

TPMI: Personnel Management
PE: 17.6
Sales: $82.3MM
Income: $1.5MM
Market Cap: $25.6MM
Mean recommendation: strong buy

WRS: Winston Resources
PE: 12.5
Sales: $52.7MM
Income: $1.5MM
Market Cap: $17.7MM

Average PE for the above group: 19.6
Average Sales for the above group: $52.67MM
Average Income for the above group: $2.01MM
Average Market Cap for the above group: $74.9MM
Averaged ratio of Market Cap/Sales: 1.42
Averaged ratio of Market Cap/Income: 37.26

The following is based on my projections of 1998 net income
of approximately $7.5MM from revenue of approximately $90MMM
and is based on the current stock price and 70MM shares outstanding:
FAMH Sector group(from above)
PE(forward): 1.96 19.6
PE('97 fully diluted to 6.7
70MM shares)
Market Capitalization: $14.7MM $74.9MM
ratio of Market Cap/Sales
(forward): 0.16 1.42
ratio of Market Cap/Income
(forward): 1.96 37.26

IMO, the business is there, and it will be verified.
All the company has to do is to better handle
it's communications with the shareholders, follow
through and be accountable for their actions.
New management gives this a real shot at doing just that.

Jin.
ps Collin, me too!
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