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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services

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To: JIN CHUN who wrote (19078)5/24/1998 10:30:00 AM
From: JIN CHUN  Read Replies (4) of 27968
 
Some interesting comparisons across the staffing industry:

Industry average P/E ratio: 44.7
Industry average Price to Book value: 4.06
Industry average Price to Sales ratio: 0.68

Comparisons to projected revenue of 80 to 100MM for 1998:
Below is a compilation of companies in the sector with revenue under $100MM using
MSInvestor's finder.

ASGN: On Assignment
PE: 40.6
Sales: $112.9MM
Income: $9MM
Market Cap: $368.3MM

ACSY: ACSYS inc
PE: N/A
Sales: $61.6MM
Income: (negative)$1.8MM
Market Cap: $169.7MM

ASIS: ASI Solutions
PE: 28
Sales: $27.9MM
Income: $1.9MM
Market Cap: $61.6MM

HIR: Diversified Corporate Resources
PE: 9.9
Sales: $35MM
Income: $2.6MM
Market Cap: $34.6MM

JOB: General Employment
PE: 18.7
Sales: $34.4
Income: $2.8MM
Market Cap: $51.8MM

JOL: Joule
PE: 13.4
Sales: $51MM
Income: $1.1MM
Market Cap: $14.2MM

MDIX: Medix Resources
PE: NA
Sales: $23.2MM
Income: (negative)$1.1MM
Market Cap: $7.3MM

SOLP: Soloman-Page Group
PE: 17.6
Sales: $38.7MM
Income: $1.3MM
Market Cap: $22MM

TPMI: Personnel Management
PE: 18.6
Sales: $79.4MM
Income: $1.5MM
Market Cap: $26.6MM

WRS: Winston Resources
PE: 13.1
Sales: $52.7MM
Income: $1.5MM
Market Cap: $18.5MM

Average PE for the above group: 19.9
Average Sales for the above group: $51.68MM
Average Income for the above group: $1.88MM
Average Market Cap for the above group: $77.46MM
Averaged ratio of Market Cap/Sales: 1.5
Averaged ratio of Market Cap/Income: 41.2

The following is based on my projections of 1998 net income of approximately $7.5MM from revenue of approximately $90MMM and is based on the current stock price and 70MM shares outstanding:
FAMH Sector group(from above)
PE(forward): 2.75 19.9
Market Capitalization: $20.65MM $77.46MM
ratio of Market Cap/Sales
(forward): 0.23 1.5
ratio of Market Cap/Income
(forward): 2.75 41.2

IMO, the business is there, and it will be verified.
All the company has to do is to better handle
it's communications with the shareholders, follow
through and be accountable for their actions.
New management gives this a real shot at doing just that.

Jin.
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