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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services

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To: Mark[ox5] who wrote (8431)3/27/1998 12:56:00 PM
From: JIN CHUN  Read Replies (3) of 27968
 
I ran a screen last night of all the companies in this sector with sales less than $100MM a year to do a comparison with FAMH. I came up with 7 companies, although it may not be comprehensive due to the database used. Listed below is the pertinent info. The PE ratios range, some because the company is mainly focused in the light industrial/manufacturing area, and some because the growth prospects aren't too hot, and another because it is in IT.

ASIS:
CURRENT PRICE: 10
PE: 30.3
EPS: .33
Sales: 27.9MM
Income: 1.9MM
Shares: 6.447MM
Market Cap: 64.47MM
Zacks rated Strong Buy

JOB:
CURRENT PRICE: 15 1/4
PE: 22.8
EPS: .69
Sales: 32.9MM
Income: 2.8MM
Shares: 4.02MM
Market Cap; 63.3MM

SOLP:
CURRENT PRICE: 3 9/16
PE: 16.5
EPS: .22
Sales: 33.7MM
Income: 1.4MM
Shares: 5.13MM
Market Cap: 18.6MM

WRS:
CURRENT PRICE: 6 1/4
PE: 14.6
EPS: .41
Sales: 49.2MM
Income: 1.4MM
Shares: 3.56MM
Market Cap: 21.34MM

JOL:
CURRENT PRICE: 5 1/2
PE: 16.8
EPS: .32
Sales: 49.9MM
Income: 1.2MM
Shares: 3.67MM
Market Cap: 19.7MM

TPMI: (light industrial)
CURRENT PRICE: 14 1/2
PE: 20.4
EPS: .70
Sales: 79.4MM
Income: 1.5MM
Shares: 2.05MM
Market Cap: 29.2MM
Zack's rated Strong Buy

SCBI: (IT)
CURRENT PRICE: 21 7/16
PE: 35.2
EPS: .54
Sales: 95.1MM
Income: 6.6MM
Shares: 11.2MM
Market Cap: 233.1MM
Zack's rated Strong Buy

AVERAGE PE in above grouping: 22.4
MINIMUM EPS ESTIMATED BY IRA IN CC FOR '98
.20 based on 40MM shares.
Applying the average PE gives, with today's share count, and '97 eps: $2.43.
Applying the average PE with trailing eps after merger:
$8.064.
Applying the average PE with projected minimum eps with current share count:
$4.48.
Applying the average PE with projected minimum eps after merger: $14.93.

IMO, anyway you slice it, it's undervalued.

Jin.
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