Little Engine, what I had said, and continue to reiterate is that the numbers that you have used to calculate 3Q earnings was never released in a black and white fashion. Considering that they may have to be refigured, then where does the rest of your argument go? I never tried to fix your math simply becaused the base of your argument is not accurate in my opinion.
I agree with others on the thread that a true valuation to the company comes from their potential growth in this sector. Given the amount of acquisitions they have either in the works or finalized, I would say that they are growing at a rapid pace. Why wouldn't the financials for last year in an audited form have a bearing on the "company that this has become?". I guess it wouldn't matter that they would be an already profitable company in a huge growth sector with big contracts already in hand that are expected to propel sales next year by 2-4 mil. I guess it really doesn't matter that although as you had pointed out, the Myriad deal may be different than initially thought by many, and that Myriad's current operations have a low margin (as speculated), but that if they are profitable( I see no reason why the acquisition would happen if they were not ), I guess it would just be irrelevant if they were to use the cash flow from that and continuing operations to expand both vertically and horizontally withing their industry. As someone has already pointed out, the business that Myriad is apparently in has synergistic effects with Firamada's current operations.
Most funds, in my opinion, look at companies that may be undervalued, as do other investors. So I guess that if the 10-k is filed and they show a profitable operation with profitable acquisitions and new offices opening up in the first Q for '98 then it really wouldn't matter because they just aren't the same company they used to be. I'm personally glad, because, IMO, the management and philosophy of Monas et al has accomplished alot in the short amount of time that Firamada has had any attention at all.
IMO, those who are long on FAMH see the value of a company that is expanding in a profitable sector.
Tony, come on man. The company is a relatively new issue. If you look at the historical data for FAMH, the volume of the stock was always aroung 20-40k, with few exceptions until the pr started. Basically, as happens to alot of new issues, the price dropped steadily. If you look at any of the technical indicators (barely applicable to a BB), you would see that many such as Money Flow, Stochastics both slow and fast, are showing that FAMH is continuing to be oversold while it is reinforcing a bottom. Personally, none of this matters to me since my faith in the company arises from the issues mentioned above and I have not nor do I plan to daytrade this stock.
I echo the words of the Wayne J. when I say that patience for those who are long on the company will be rewarded soon as the details of the acquisition and the audited financials are release.
Jin. |
