Turboe,
Now that we've exchanged "insults" and you followed up in a good natured way (commendable by the way), I would like to tell you what I am currently thinking.
I, like you, have had some disturbing experiences...at one time lost nearly $160,000 (on paper) in ONE HOUR! Did is disturb me? Of course it did. But the overall picture is I don't need any of my investment money and I can ride out temporary bumps in the road, focusing on investing in what I believe to be great companies. If I'm wrong I sell at a loss. I have had losers...we all do.
Now, on to FAMH. Currently I am down a few percentage points in spite of averaging down at these lower prices. Right now I can't tell you when my TV is going out much less be certain what will happen to FAMH in the future. However, since FAMH has been a profitable business for 19 years? as evidenced by the balance sheet they just published AND have acquired another company with much higher revenues why wouldn't I think they will continue to make money?
Brad has posted some excellent projections. I can't be certain that his projections are 100% correct or, for that matter, 50% correct. I do feel that if FAMH produces net earnings of only $0.10 per share in 1998 I am guessing that with a P/E of only 15 the stock should be at $1.50 per share.
Cutting through all the BS, I really don't care HOW many shares are outstanding or are in the float as long as net earnings are positive...even $0.05 per share would be fine with me. At this time I'm willing to wait for the results until at least the end of 1998 because, as I said before, I don't need the money. I do understand that we all have different investment horizons and tolerance for risk, and a lot of "investors" wouldn't feel like I do at all. That's O.K., it's what makes the world go around.
Since FAMH HAS been profitable for all these years I can't believe they will now turn around and shoot themselves in the foot financially or go bankrupt in the next 6-9 months.
Analyzing everything to death WILL NOT change anything about the ultimate profitability of FAMH. At this time, I'm betting ON them because it's hard to find a BB stock that is not a pipe dream.
Cordially,
Dave |
