Cheryl, I agree. Given that HDWY did the exact same thing that FAMH is proposing to do: reverse merging into an already listed NASD company, and given that they are at least in the same sector, even though business concentrations are different, it gives a good empirical example of where we may be heading.
First, it's been done before! and successfully!
Second, HDWY has exactly 8.9MM shares out, with a market
cap of $66.2MM as of Friday. This is on total Net of only $2.2MM
in '97. With PE of 20, it makes for a nice comparison, of where
a company is now that has gone down the same trail.
Myriad has reportedly done a net of 1.8MM in '97. Ira in the CC said they are leasing 8,000 employees currently, which in my estimation
puts them on a pace of 80MM annual revenues. If the Myriad deal is inked next week, with 75% of the year left, they could easily bring in 60MM in revenue this year for FAMH. With the same net margin that they had last year of 4%, this means that they could bring in the same net revenue for FAMH as HDWY in '97. This says to me, that at the very least, the Myriad acquisition alone should put FAMH trading at the same price as HDWY near $8. Add in the other divisions, potential revenue from IT, the financing, Morton Downey, then we have the potential for the higher end of your figure IMO. And a reduced float to boot!
This is getting better and better.
Jin. |
