This is the last posting for today. I've used up my three already.
In response to your question, John, the financing company and MD
earnings are part of Ira's estimates of going forward earnings. As for
the $.1085 EPS for 1997, I'll believe when I see it. If 20 million shares
were outstanding, it would require approximately $2.2 million in net
income to get $.1085 EPS. That's $3.6 million pre-tax on $8.0
million is sales or 45% margins. Ira stated on the last CC that margins
run 15-18%. This is why I have doubts about the figures that are
being tossed out. If you all want to believe what Ira and his PR firm
say, be my guest. I'm just trying to point out, what I think are, major
holes in this story. Is the risk/reward worth it? Maybe. Again, I hope
you all make a killing on this.
As for the financing business, assuming FAMH earns 10% on the
money it finances to their customers (which is higher than banks offer)
for payroll, FAMH would have had to fund $15 million during Q1 1998.
Here's the equation: $15 million @ 10%= $1.5 million/12 months=
$125,000 X 3 months= $375,000 pre-tax. Where did they get all that
money?
Lastly, Jin, where did you go to school? I want to know what's at
stake if I bet with you. The reality is the stock may hit $1.00 based
on the hype, but it will fall when audited numbers get released IMHO.
I've made my points and will stop posting here unless I'm proven
wrong or place my bet with Jin. Time will tell. |
