Here is Brad's updated overview:
GENERAL "OVERVIEW" INFORMATION on FAMH (Updated 4-17-98)
(This information has been compiled by me, an independent investor,
and is presented to be as accurate as possible according to what
information I have been able to obtain from public and private sources.
This should NOT be assumed exact, but is presented as a starting
point for research purposes. OK, reading this might take a while, so
get comfortable.)
Ticker Symbol: FAMH (OTC:BB)
COMPANY:
Firamada
40 Wall Street, 32nd Floor
New York, NY 10005
Phone number: (212) 425-2168
CEO: Arif Adam
President: Ira A Monas
PR FIRM: Anna Love at Preferred Financial Marketing (310)-789-1132
in California.
FOR MORE INFORMATION:
Call Firamada's PR Firm... Anna Love at Preferred Financial Marketing
(310)-789-1132
Brokers & Market Makers call Robert at Firamada (FAMH): (212)
425-2168
CONFERENCE CALLS: Held most Thursday afternoons in March at
4:15 PM (EDT) Live Call 1-800-860-3035.
Replay available 24 hrs a day for 3 days 1-800-567-1533.
AUDITING FIRM: Marcum and Kliegman mkllp.com
SEC FILINGS: FAMH begins as a reporting company effective Jan 1,
1998. Their first Audited Financial Statement is scheduled to be made
public shortly.
RECENT PRESS RELEASES:
quote.yahoo.com
Some older releases can be found at the following site:
PR Newswire Info Page:
prnewswire.com
E-MAIL: irafm@aol.com
EARNINGS:
1997 Revenues: $8.5 Million
EPS: 10.85›
1998 Revenues Projection: $80 - $100 Million
EPS Projection: 25-30›
This EPS estimate is "pre-merger." This would equate to around 90›
"post-merger."
Click on this site to review MY projections for FAMH for the next
12-Months: Message 4015539
This projection includes MY view of the impact of a proposed "merger"
with ATXI.
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SHARE INFORMATION:
TOTAL SHARES AUTHORIZED: 100 Million
TOTAL SHARES OUTSTANDING: Apx 46 Million
FLOAT: Apx 15 Million
INSIDER HOLDINGS: Apx 31 Million (Virtually ALL Restricted)
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ANNUAL CORPORATE REPORTING DATE:
March of each year
GENERAL BUSINESS INFO:
FAMH has several revenue sources, all of which are already
profitable:
1) FIRAMADA'S ORIGINAL 5 OFFICES -
Since several of the offices have been acquired, you will find offices
under the names of Firamada, Encompass Staffing or Success
Staffing. This is their first year as a fully reporting public company. The company was started by Adam Arif and his family about 19 years ago in Texas.
FAMH says their profits in staffing services are expected to be slightly higher than the industry average because they are moving away from the low margin business (low pay scale bulk temps) and focusing,
instead, on the high profit end of the business (upscale administrative and IT permanent placements).
2) MYRIAD EMPLOYMENT SERVICE -
Firamada recently acquired Myriad Employment Services, a $55
Million employee leasing company located in Long Beach, California.
Myriad's number of employees leased has recently increased from
about 5000 up to around 7000.
3) NEW OFFICES and SMALL ACQUISITIONS -
Firamada is opening a new office in Florida. They are also looking at
the Long Island, NY market for a new office or an acquisition. Other
small acquisitions include an office in Phoenix, AZ as well as several
other East Coast locations.
4) IT DIVISION (Phoenix Location) -
The new IT Division in Phoenix has taken off very quickly. IT sales are extremely profitable.
5) WORKMAN'S COMP INSURANCE PROCESSING -
With workman's comp insurance and employee benefits programs,
staffing companies make money on the spread by bulk buying. So
FAMH has developed an "Offshore captive" that allows them to get
workman's comp insurance costs at $1.65 per $100 payroll regardless
of the job. It's re-insured. FAMH then re-sells this coverage to
companies at $4-7 & up per $100 of payroll. Great profits.
Many major staffing companies have problems with workman's comp
coverage. FAMH has over $100 million in workman's comp billings to
put thru their offshore captive and make $2-3 per $100. Very little
expense. Very profitable.
6) MORTON DOWNEY JR TV TALK SHOW -
Firamada co-produces a new nationally syndicated Morton Downey Jr
television talk show. This show is scheduled to be taped at HBO
Studios in NY and begin airing in June of this year to 105 cable
markets across the US. FAMH says they have already sold
sponsorship sufficient to recoup the cash outlay. This TV Show is
expected to generate a minimum of over $100,000 per DAY in revenue
to Firamada alone. This is based on just a 1% viewing share. When the Morton Downey Jr Show was on before, it held as much as a 6% share of the market. By my estimates, this would add about $25 Million in annual revenue with a very high profit margin of around 70%.
7) PAYROLL FINANCING -
Firamada has a finance division that is already showing a net profit of over $373,000 just in the 1st Quarter of this year. Payroll Financing is "factoring." Staffing companies run their invoices through a "Factoring Company." Current rates from factoring companies
run about 4.5-5% plus an interest rate. FAMH Factoring (Payroll
Financing) only charges 3.5% and NO interest rate. FAMH brokers
factoring to other companies - almost pure profit. Very low overhead.
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
SUMMARY of PRE-TAX PROFITS from These Revenue Sources:
1) $ 595,000..................FIRAMADA'S ORIGINAL 5 OFFICES
2) $3,069,000................MYRIAD
3) $ 448,000..................NEW OFFICES & 3 SMALL ACQUISITIONS
4) $3,325,000................IT DIVISION PHOENIX
5) $1,750,000................WORKMAN'S COMP INS PROCESSING
6) $12,500,000..............MORTON DOWNEY JR TALK SHOW
7) (Payroll Financing shown below under "Summary of Net Profits)
+ $3,000,000................SELL OFF of ATXI ASSETS (Post-Merger)
TOTAL $ 24,687,000 in Pre-Tax Profits
Less Estimated Tax (apx 40%) $ 9,874,800
TOTAL NET PROFIT for this BUSINESS GROUP
(Projected)............. $14,812,200
SUMMARY of NET PROFITS:
$14,812,200................TOTAL of BUSINESS GROUP ABOVE
$ 1,496,000................PAYROLL FINANCING DIVISION
($1,000,000)..............One-Time Payment to IRS
12-MONTH NET PROFIT (Projected)................... $ 15,308,200
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
EXISTING OFFICES:
Encompass Staffing
67 Wall Street, Suite 2411
New York, NY 10005
(212) 269-4777
SI Post about a visit to this office:
Message 3790159
Encompass Staffing
2730 North Stemmons Freeway
West Tower Suite 1210
Dallas, TX 75207-2256
(214) 688-0711
(888) 523-9962
SI Post about a call to this office:
Message 3783979
Encompass Staffing (New office opened in November, 1997)
10850 Richmond Ave
Houston, TX 77042
(713) 334-5665
SI Post about visit to this office:
Message 2953584
Success Staffing
602 W 6th St., Suite D
Rolla, MO 65401
(573) 368-5782
(888) 368-5782
Success Staffing
3020 E Camelback RD, Third Floor
Phoenix, AZ 86016
(602) 955-6657
(888) 956-6657
SI Post about a visit to this office:
Message 3645169
Miami, FL Office - Now opening.
Office Space Leased.
Manager Hired.
(Still researching address & phone)
Myriad Employment
249 E. Ocean Blvd. #800
Long Beach, CA 90802
(562) 624-6277
Fax: (562) 624-6292
PLANNED ADDITIONAL OFFICES (New & Acquisitions):
Recently Myriad Employment Service was acquired by Firamada.
Myriad had a tax problem, so essentially Firamada bought Myriad from
the IRS for a total of $4.5 million of which $1 million is paid up front (in April 1998) and the balance of $3.5 million is paid to the IRS in 60 monthly installments of about $59,500.
Firamada has various other acquisitions targeted including a small IT
company in California. That transaction is still waiting on the outcome of a Probate Court decision.
To facilitate growth by acquisition, Firamada has obtained a line of
credit through an equity investment in the amount of $12 million US
dollars through Bristol Asset Management of Los Angeles, CA. I
believe FAMH can draw down against the line of credit, but the
amount of each draw down is tied to the trading volume for a given
period of time. I believe any shares involved are restricted for at least a year. The President of Firamada has described the agreement as
being very "shareholder friendly and management friendly."
WEB SITES RELATED TO FIRAMADA:
otcfn.com
occ.com
dejanews.com (Type "Firamada" in
the SEARCH box)
NASDAQ LISTING INFORMATION:
FAMH says they currently meet ALL the requirements for listed as a
NASDAQ Small Cap company with the exception of share price. FAMH
is currently negotiating a "merger" with Atrix International (NASDAQ:
ATXI).
For reference, here is the site that lists the requirements for NASDAQ
Small Cap Listing: nasdaq.com
OTHER INFO to Consider:
1) Temporary staffing is a hot industry. It is also a highly profitable industry.
2) Firamada is negotiating a settlement of a disputed tax lien in the
state of Texas.
3) The predictable thing about rapidly growing companies is that many
things are "unpredictable." The dynamics of growth necessitate
adjusting to changing circumstances to take advantage of
opportunities. Taking advantage of opportunities also carries the
element of increased risk. Evaluation of the benefits of "opportunity vs. risk" must also be considered.
4) Ira Monas (President) seems to have a tremendous talent for
"negotiating deals." He is a driving force behind the growth of FAMH.
Sometimes the abrasiveness of that talent can easily seem abrupt or
offensive to shareholders. However, Mr Monas seems to make an
extra effort to respond personally to the genuine concerns of any
shareholder regardless of how large or small the number of shares
held.
CONFERENCE CALL NOTES: (800-860-3035 and for "Replay" call
800-567-1533)
Notes from the Conference Call of 4-2-98
Message 3951875
Notes from the Conference Call of 4-3-98
Message 3951957
Notes from the Conference Call of 4-16-98
Message 4102623
CLIENTS:
Some of their recent long-term contracts have included Colonia
Insurance Company, Coca-Cola Merchandising - Phoenix, AIG
Insurance, Republic National Bank, Tokyo Marine, Arizona State
University and Arizona Cardinals Football Team (thru Finehost), The
Phoenix Suns Basketball Team and The Phoenix Coyotes Hockey
Team (thru Restrua), Auto Zone, BF Goodrich Tire Company,
Goodyear Tire & Rubber, Hilton Hotels, 1-800-FLOWERS, Cupples Inc, General Electric, Deloitte & Touche, and Allied Signal.
COMPETITORS:
FAMH says their main competitors are companies like AccuStaff and
Account Temps.
FAMH IS DRAWING ATTENTION:
ED TAXIN'S FINANCIAL HOUR has picked FAMH (Firamada) as one
of the "Top-10 Stocks to Watch in 1998." "Ed Taxin's Financial Hour"
is on 32 radio stations across the country. The company said this was
NOT a paid promotion. Here's the Ed Taxin Web Site:
luau.com
Kostech Research and "Undervalued Dog" have rated the company a
buy up to $1.25 From Wall Street West Newswire March 7, 1998
"This company is rated by many as a BUY, as they just reported .10
per share positive earnings. The company stock price should move up
to the $2.00, as 25 times earnings is easily justified."
INVESTOR RELATIONS:
FAMH "Investor Awareness" promotions will be carried on 85 cable TV
stations, in-flight talk on United Airlines & TWA, and the Morton
Downey Jr Invest America TV Show. These ARE paid promotional
programs.
Conference calls to Brokers, Fund Managers, and Investors will
continue most Thursday afternoons at 4:15 PM (EDT) at
1-800-860-3035. The "replay" of this call can be heard 24 hrs a day for 3 days by calling 1-800-567-1533.
Firamada has also publicized recent press releases in INVESTOR'S
BUSINESS DAILY (1-2-98 issue and 3-9-98 issue) and BARRON'S
(1-12-98 issue and 3-12-98 issue).
INDUSTRY POINTS FROM SOME POSTS ON SILICON
INVESTOR:
"Contract Employee is crucial in all business today as I see many firms and the Government using staffing for many more projects as they are started." - Jim, post #70
"...executive placement which is REALLY profitable." - John, post #72
"Labor shortages will remain a big headache, with many managers
particularly worried about the lack of qualified help. More firms will hire temps and lease workers,... a booming business. Let's managers
concentrate on their core business while outside outfits handle the
hiring, firing, payroll, insurance and job training chores. "
The Kiplinger Washington Letter ---- Nov 14, 1997. - post #228
"I saw a news show on TV a month or so ago that indicated that the
US work force is starting to change drastically. I don't remember the
numbers exactly, but it was an extremely high percentage (like 50% to
70% or so) of the working force over the course of the next 5 to 10
years would not be working regular full time jobs. They would be
working either for themselves or working temporary jobs. People are
wanting to become more flexible in their employment." - Cheryl OD,
post #235
Government Addresses Tech Worker Shortage (01/12/98; 7:03 p.m.
EST)
By Mary Mosquera, TechWeb
"The shortage of skilled high-tech workers is so urgent that the Clinton administration announced Monday it will help train more computer programmers and other technical workers. The Labor Department has projected that the United States will need 1.3 million more computer scientists, engineers, systems analysts, and computer programmers between 1996 and 2006, calling it 'America's new deficit.'" (post #1140)
SILICON INVESTOR and OTHER TALK THREADS:
SI - FAMH - Research Posts Only Thread:
Subject 19418
SI - FAMH Chat Thread:
Subject 18031
STOCKMANS FORUM:
stockhouse.com
YAHOO THREAD:
messages.yahoo.com.
INDUSTRY INFO in General:
Statistics from NATSS (National Association of Temporary and
Staffing Services) indicate that the temporary employment business is
one of the three fastest growing industries in the United States.
Here are some interesting posts and sites about the industry in
general:
Message 3462549
Message 3496110
sireport.com
natss.org
Recent articles about the Industry in general:
sireport.com
FAMH vs. INDUSTRY ANALYSIS
(SI posts #5125 by Brad)
Message 3610395
Message 4093339
(SI post #1441 by Keiko)
Message 3182596
(SI post #903 by Dave)
Message 3124739
CURRENT QUOTE:
(Type "FAMH" in the "Real Time" box)
freerealtime.com:8001/
or 15-minute delayed with news:
quote.yahoo.com
CHARTS:
tscn.com
Warthog's chart on FAMH:
Message 4107889
HISTORICAL PRICING: (Type "FAMH" in the Symbol box)
tradepbs.com
INSIDER BUYING / SELLING REPORTS:
insidertrader.com
WHY I LIKE THIS COMPANY:
This business can be very easily understood. It is not something
that requires years and years of scientific research or something
"deep" like that.
This is not a developmental company.
The company and its business can be visited in various locations
across the USA. It is NOT off in some other country making it more
difficult to verify.
The company is growing rapidly in a very hot industry.
Firamada is profitable NOW and is growing like crazy. Here's a good
"quick look."
Message 3958652
The difference between Firamada shares at 63› and Firamada
shares at $3.25 is the question of when they will be listed on NASDAQ
and fully reporting. I will take my chances and buy now rather than
waiting to pay a higher price later.
I think the "Value" is there. It's just a matter of time before others find out about it.
I also see the possibility of FAMH being acquired. I like the "instant profit" of that idea.
PLEASE NOTE:
I am NOT associated with FAMH in any way. I am an individual
investor with my own opinions. I don't give advice. Questions should
be directed to the appropriate source, many of which are listed above.
Everyone is urged to do their own research before investing in
anything.
Best wishes,
Brad |
