FAMH - FIRAMADA Staffing Services Message Board

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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services

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To: dennis foster who wrote (4107)	2/25/1998 10:47:00 PM
From: Little Engine	Read Replies (3) of 27968

Dennis... You are saying that (following DCTC's lead) the FAMH buyback may raise the stock price 5 percent? Gee, bar the doors, call the fire department, this puppy's blazing... And you are saying that earnings actually matter... that the company hasn't changed fundamentally since they issued 20 million shares and may buy back 4 million? I have to agree with you. Earnings matter more than this charade... Note to Jin: Of course, you do recall Post#1428... explaning how employee leasing profits work. <<<The plausibility of this acqusition now makes sense to me. There is a huge difference between Temporary Staffing (FAMH) and Employment Leasing (Myraid). The margins in the employment leasing business are razor thin, i.e. under 1%. The following are examples: Nova Care (NCES)Profit Margin= .1% Staff Leasing (STFF)Profit Margin= .7% Administaff (ASF) Profit Margin= .5% Staff Leasing in the past nine months had revenues of 1.3Billion but earnings of only 13.9MM; Administaff in the past nine months had revenues of 839MM but earnings of 3.9MM; and NovaCare in the past three months had revenues of 267MM and earnings of 937,000. Applying these margins to a $60MM company we get earnings of between $60,000 to $420,000. >>>> I depend on real world numbers... Not those from "Ira Land" By the way, I trust that the .11 EPS will be fully diluted, right? Since the SEC is requiring that diluted earnings be reported now?

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