To ALL, This is a Very Interesting stock. I have been researching FAMH and this is what I have found so far.
FAMH is a Temporary Staffing business that was originally a family business started about 19 years ago in Dallas, TX by Arif Adam. It grew and eventually expanded into Houston, TX and Chandler, AZ (suburb of Phoenix). The Phoenix office moved to its existing location about 3 years ago.
In 1993, they acquired Success Management.
The company went public just a few months ago (May or June 97). They presently have 4 Offices operating in Phoenix (AZ), Rolla (MO), Dallas (TX), and New York.
These 4 Offices are currently doing about $8 Million in annual revenue. This industry (Business Services - Staffing Sub-Industry) usually operates at about a 20% Net Profit margin, but FAMH says they expect to operate at about a 24-28% Net because of the industries they are focusing on.
They are expecting to open an office very soon in Houston (TX) and Miami (FL). After that, they are looking at Las Vegas (NV), Salt Lake City (UT) and somewhere in Northern California.
They are currently an OTC-BB stock, but their intentions are to be trading on NASDAQ early next year.
Shares Outstanding: 19,130,620
Shares in the Float: Apx 1,700,000
In one of their News Releases I noticed they signed on as the Secondary Agency for FINEHOST (FINE). FINE is ranked #2 of 126 companies in the Business Services Industry on Yahoo.
The Business Services - Staffing Sub Industry trades at an average multiple of 24.6 times EPS. If FAMH has an Annual EPS of .11 cents it could put the stock trading in a range of $2.70 a share.
The information above came from:
-News Releases;
-Various URLs on the internet;
-Unaudited Financial Statement (6 months ending 6-30-97);
-Phone calls to Vision World (their PR firm), their Phoenix Office, and the company Office in New York.
Here's my speculation...
If the Miami and Houston Offices add the revenue they expect (about $10 - 12 Million in 1998), they could have revenues as high as $18 - 20 Million. Based on a 25% Net Profit, it would be about $4.75 Million or .24 cents EPS. .24 X 24.6 = a $5.90 stock value.
I don't KNOW that this scenario will play out like this, but I think the situation looks good enough that I bought shares today.
Thoughts anyone?
Best wishes,
Brad |
