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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services

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To: PHILL who wrote (901)1/8/1998 2:17:00 PM
From: David McCleary  Read Replies (4) of 27968
 
All, just received the company's investors packet. After reading the Dunn and Bradstreet Business Scope Analysis which was included I am convinced we have possibly the biggest undervalued company in history under our nose. Here's a breakdown of the financials:

Net sales for interim June 30, 1997: 4.1 million

Net profit after tax for interim June 30, 1997: 1.2 million

Return on sales: 30.5% Industry average is only 1.9%

Return on assets: 64.9% Industry average is only 9.6%

Return on equity: 81.3% No industry average given

Net worth "substantially above industry average" according to D&B: Net worth represented 79.8% of total capitalization. Industry average is only 45.8%

Liabilities to net worth: 25.2% Industry average is 116.4% This means that FAMH's equity provides much more protection for creditors than the industry average.

Quick ratio: 4.3 Industry average is only 1.7. Whereas FAMH's ratio has improved since 1995, the industry has seen a decline in this ratio.

Current ratio: 4.4 Industry average is only 1.8

Collection period: 39.1 days Industry average is 44.2 days

Cash: 39.3% of total assets Industry average is only 11.3%

Hope this helps to reassure us of what an amazing value we have in FAMH!
Dave

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