Ira did not come through, period. First he gave us on two different occasions statements that the filings were sent in to the SEC. Yesterday it became obvious that is not the case.
He then advised and released the following press release stating that an audited balance sheet would be released. It was not, period.
Read once again his release stating that they have released an audited balance sheet. If they have where is it. What has been posted in no way can be considered a balance sheet. Ira, shame on you!
Friday May 8, 3:42 pm Eastern Time
Company Press Release
Firamada, Inc. Releases Audited 1997 Balance Sheet and
Six-Year Pro Forma Projections
NEW YORK--(BUSINESS WIRE)--May 8, 1998--Firamada, Inc. today released the Company's Audited Balance Sheet for 1997 and also Pro Forma projections for 1998-2003. The future projections listed below do not include anticipated income generated from the production of The
Morton Downey, Jr. Show, Firamada's re-insurance of workman's compensation plans or Firamada's payroll financing division, all of which are expected to be highly profitable.
FIRAMADA, INC. 1997 Balance Sheet:
Period Ending Dec. 31, 1997 ASSETS: -Cash..........................2,815,273
-Accounts Receivable.............863,428 -Inventory.............................0
-Prepaid and Other...............213,125
________________________________________ Total Current
Assets...........3,891,826 -Property and Equipment..........163,121 -Other
Assets..................1,875,000
________________________________________ TOTAL
ASSETS...................5,929,947 LIABILITIES & EQUITY: -Accounts
Payable.................83,128 -Accrued Expenses......................0 -Other
Current...................355,641
________________________________________ Total Current
Liabilities........438,769 Long-Term Debt: -Revolving.............................0
-Lease Finance.........................0 -Senior Term Debt......................0
-Subordinated Debt.....................0 -Jr. Subordinated Debt.................0
________________________________________ Total Long-Term
Debt...................0 Other Long-Term Liabilities.......76,480
________________________________________ TOTAL
LIABILITIES................515,249 EQUITY: -Preferred
Stock.......................0 -Common Stock....................210,000
-Dividends.............................0 -Treasury Stock........................0 -Additional
Paid in Capital....2,734,193 -Retained Earnings.............2,470,505
________________________________________ TOTAL
EQUITY...................5,414,698
________________________________________ TOTAL LIABILITIES
& EQUITY.....5,929,947
----------------------------------------------------------------------
A balance sheet is a very specific reporting tool. Specific accounts
must appear on it. What FAMH released does not even qualify for consideration. After reading below, for those not familiar with balance sheets, hit the copied URL and go through the additional articles on current assets, liabilities,...
Liquid: A Journey Through the Balance Sheet
"Cash Is King?" Sure, you have heard the
cliche. You will be talking to another investor
about the latest addition to your portfolio and the
conversation will turn to how each of you picks
stocks. The other investor will smile at you and
wink, cryptically saying, "Cash is king." Although
somewhat perplexed, you don't dare ask for
clarification for fear of looking like a fool. But
what the heck does that really mean?
Publicly traded companies are designed to make
money. The conventional way of scoring this
pursuit is by looking at the company's ability to
grow various flavors of earnings -- operating
earnings, pretax earnings, net income and
earnings per share are all common measures.
However, this is not the only way to determine if
there is real value in a company's stock. A
company's real earnings are the earnings that
make it from the Consolidated Statement of
Earnings to the Balance Sheet as a liquid asset.
Shareholder value ultimately derives from liquid assets, the assets that can easily be converted into cash. A company's value is determined by how much in the way of liquid assets it can amass. There are two ways to think about this. The first is to look at terminal value, which assumes for the sake of calculating potential return that at some future point a company will close down its operations and turn everything into cash, giving the money to shareholders. The second is to look at where tangible shareholder value comes from -- returns on invested capital generated by the company's operations. If a company has excess liquid assets that it does not need, it can deploy those assets in two ways to benefit shareholders -- dividends and stock buybacks.
Knowing what is on the balance sheet is crucial to understanding whether or not the company you are investing in is capable of generating real value for shareholders. Most investors who look at annual reports, 10-Ks and 10-Qs spend far too much time worrying about earnings and far too little time worrying about the balance sheet and its cousin, the Statement of Cash Flows. It is the balance sheet that can tell you if a company has enough money to continue to fund its own growth or whether it is going to have to take on debt, issue debt, or issue more stock in order to keep on
keeping on. Does a company have too much inventory? Is a company
collecting money from its customers in a reasonable amount of time?
PAY ATTENTION TO THE FOLLOWING ADVICE................................
It is the balance sheet -- the listing of all of the assets and liabilities of a company -- that can tell you all of this.
Where do you find all this information about the balance sheet? Would
you believe that you can get it for free? The documents that the Securities Exchange Commission (SEC) makes available to you online at the Edgar website give you all sorts of balance sheet information in the 10-Ks and 10-Qs. The 10-K is a toned-down version of the annual report with more text and fewer pretty pictures that comes out once a year, containing the company's annual balance sheet. The 10-Q is a quarterly filing that a company makes with the SEC three times a year (with the fourth filing being the 10-K in the fourth quarter) that also tracks the balance sheet through the course of the year.
The advantage of the annual balance sheet over the quarterlies is that the annual balance sheet has been double-checked by accountants before it was filed with the SEC.
Armed with this information, you are ready to begin your journey through the balance sheet.
...Part 2, Current Assets
fool.com
After that, if you have any questions or have further interest, go to actual filings available at Edgar by other companies. FAMH wrote in one of their releases, how analysts were already calling Ira's move brilliant...ever wonder their names and how many follow a penny stock?
If Ira is as brilliant as these analysts reportedly said based on the company's release, he knows what a balance sheet is. This is not something one plays word games with. FAMH did not release what they said they would, do not be fooled.
If you wish to argue the point, and say, well that's ok, we have some consolidated numbers, then make them work. Figure out how this reportedly large company has within their consolidated numbers,
automobiles, leasehold improvements, a/depreciation, accrued wages, interest, federal payroll tax, state payroll tax, SUTA and FUTA, federal income tax, state income tax...
Ira, you advised your own shareholders and the public you would release an audited balance sheet, you did not. |
