FAMH - FIRAMADA Staffing Services Message Board

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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services

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To: Gary Smith who wrote (9604)	3/31/1998 6:17:00 PM
From: Brad	Read Replies (1) of 27968

Hi Gary! I think I have found the reason Ira is particularly interested in ATXI as opposed to just any NASDAQ company. In studying the ATXI filings with the SEC, I can see that by liquidating ATXI assets there could be $4 Million in cash that could be used for more acquisitions. $4 Million !! That would keep my interest, too! I will also speculate that the ATXI Board recognizes that their game is up. At this point, they are probably negotiating for parachutes. FAMH is after 3 seats on the Board according to today's PR. That tells me that the ATXI "major shareholder" and FAMH can probably live with the others. There are probably 3 that are being a real pain. They probably just want the right "exit deal" in order to step down quickly. My guess is that the only leverage these 3 might have would be making the process go faster or slower. Of course, if they drag their feet too much, Ira will just "blow 'em off" and they get nothing but a pink slip. I think their best hope of getting anything out of this is by cooperating. If they get too greedy, Ira could lose patience with them and he'll make sure they don't get anything just out of principle. The more I read the SEC filings for ATXI, the more I see how the Board has neglected the interests of ATXI shareholders. Here's the latest 10-Q... sec.gov Consider ATXI's recent performance: 1995 EPS = .06 1996 EPS = .03 1997 EPS = .04 1998 EPS =(.09) And that's just for 6 months! The Revenue for FY 1998 is DOWN 29% from last year. They lost 2 major customers (AT&T and AVNET) which will mean a LOSS in revenue of around $1.45 Million for FY 1998. How long can ATXI shareholders accept this poor performance? Even in the years they made money, it came primarily from a patent infringement lawsuit. The 9› LOSS Per Share with the 29% DECREASE in revenue so far this fiscal year shows how badly things have deteriorated. ATXI needs FAMH ! FAMH isn't forced to take ATXI. FAMH probably just likes the benefit of the liquidated asset value ATXI could provide for acquisitions. I think Ira is making a good solid choice in ATXI because it will benefit the shareholders of BOTH companies. Just my opinions, of course. Best wishes, Brad

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