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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services

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To: Little Engine who wrote (4331)2/28/1998 1:23:00 PM
From: JIN CHUN  Read Replies (1) of 27968
 
LE, awhile ago, you cited STFF as a comparison for FAMH. In my response, I mentioned how their market capitalization, and it's ratio to earnings when applied to the eps of the Myriad acquisition alone should value FAMH well over $1/share. The point that you never mention is that as long as FAMH's numbers are more than .01/share eps, than the issue is undervalued by your own example.

Here's the math:
STFF: market capitalization is 35.5 times net annual earnings
Current FAMH market capitalization around 12.8MM.
35.5 times annual net = market capitalization = 12.8MM.
annual net = .360563MM = $360,563.
.360563 divided by 40MM shares = $.009/share eps.

So, according to your own example, STFF, FAMH would be fairly valued using STFF's own multiples if they made barely ONE CENT EPS.

For those who have missed the original post, here's the link:

Message 3535483

Also, although I really don't care, I have an E-Trad account. If Jamie wants to fax it to me he can.

Jin.
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