Hey everyone! Nobody mentioned a reverse split. Ira Monas, from what I can tell, seems hip enough to know the pros and cons of such a maneuver. Personally, I think it is unnecessary. For those who disliked the conference call, I have to disagree somewhat. There was some pertinent information and the general feeling that I got afterwards gave me more confidence in the company. I have some points that may be of interest:
---Ira stated an eps of .10-.11 for 97(withouth acquisitions). With the contracts that are already in place, he estimated sales for '98 with ONLY the offices that are in place to be 12-13 mil. Splitting the difference and with current margins that gives FAMH an eps of around .14/share already in place NOT taking into account revenue from Myriad, new offices, further acquisitions etc. EPS, IMO, for '98 with current share counts could easily go over .20/share with the Myriad deal alone. If after the audited financials are released FAMH starts trading towards an industry average PE multiple then listing on another exchange seems very doable.
---Ira only mentioned dilution as a possibility with upcoming acquisitions, among other issues that "might come up". I know some including myself have been wondering about the Tech Support Acquisition. IMO, that was alluded to when he said "5 or 6 acquisitions are on the table".
---I also agree that the AIG deal is significant and can only open up doors for further contracts within that industry as well as provide an excellent reference.
---I checked out the link that someone posted on AMEX requirements and it looks to me that the situation is similar with the NASDAQ situation: everything will be in place except for the minimum share price.
---It was nice to hear the following: "We are officially, as of this month, considering ourselves as a reporting company. " It sounds to me as if Ira has had some feedback from the audit and that their completion is imminent. IMO, since Firamada has only been incorporated since '95( after 19 years of operation ), and public since the middle of '97, they have had a trial by fire kind of initiation into the very public OTC-BB arena. I admit some of their decisions including the IR packet were a bit cheesy, but overall I am extremely comfortable with my investment decision. It seems as if there will be news next week. If the conference calls continue on a weekly basis, at the very least it gives us an opportunity to hear of events slightly ahead of any official releases.
---"We know it's coming, we have the assets." Personally, I was happy to hear that, if anything it sounded to me as if Mr. Monas has the confidence and the initiative to take FAMH to the next level.
I know this sounds like a book report but I couldn't help myself. I am extremely long on FAMH. I believe that the Myriad deal, if the company operates as reported earlier, could greatly enhance Firamada's revenue and contribute to the cash flow stream for further acquisitions that were mentioned. Also, wouldn't it be logical for Myriad to perhaps takeover the payroll and benefits for FAMH's other divisions as well as offering the service to the smaller companies that are using Firamada's financing division?
Waiting for the audit.
Happy investing everyone!
Jin.
ps. Little Engine, I have my calculator locked and loaded <g> |
