FAMH - FIRAMADA Staffing Services Message Board

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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services

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To: John Hanzl who wrote (8546)	3/27/1998 5:28:00 PM
From: Brad	Read Replies (1) of 27968

Hi John! Here's how I see it... FAMH is currently at $.67 ATXI is currently at $3.375 As the deal gets closer to being completed, the price of FAMH & ATXI will both rise toward a price that reflects a relatively conservative multiple, probably around 20-25 (even though most staffing companies trade in a range of 25-35 and some much higher). For FAMH, that would be $2.17 to $2.71 per share. Normally, for ATXI, that would be 4 times the FAMH price. HOWEVER, there IS more risk for ATXI because if the deal falls through, FAMH still has 10.85› EPS but ATXI does NOT. So the price of ATXI will probably trail "FAMH x 4" by a little bit. My guess is that it would probably trade at about 3 to 3.5 times FAMH. When the deal looks like it is certain to close, ATXI shares would start to come into line with "FAMH x 4." Looking at ATXI, I'd say FAMH really has ATXI over a barrel here. FAMH has lots going for it and ATXI is weak. It sounds like Ira is in the driver's seat. I think ATXI shareholders would be delighted to have this deal go through. Ought to be really interesting come Monday morning. Just my opinions, as always. Best wishes, Brad

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