I spent some time reviewing the last 2 CC and recaps & have come up with a few summations.
-During the last CC, Arif stated they had just hired the new Auditing firm....STeve Corso confirmed that yesterday.
-Famh must have had the OLD firm do the Audit, and fired them for their lack of response time in releasing audited #'s...remeber, IRA kept promising them to us...it seems they delayed them, not FAMH.
***This is key, IMHO, as they want to be fully reporting...so, they hired a firm (Corso says he is an SEC Partner with the current firm) who knows the ins & outs of the SEC requirements...Not the old firm who might fumble through the process... Short term hit, for long term accuracy, again IMHO. I have stated before that IRA & MGMT stated the audit was complicated due to the different companies (FAMH/MYRIAD/Other acquisitions) having DIFFERENT FISCAL CALENDARS.
I have been informed, from sources i trust, that the ATRIX deal was not over finacials....It was over the 4 million in assets that IRA wanted to sell off, and ATRIX (and apparently Minnesota laws) wouldn't allow...thus, this was the deal buster.
Some positive things from this last CC.
Arif states - CFO search down to 3 candidates with the decision by the end of the week...Likely to begin within 2 weeks...this should fit in well with Audit being done...Arif can hand the new CFO a clean slate to start with....release this to SEC/Edgar to be his/her 1st act.
Sales (1998) are EXCEEDING TARGET !!!!
Randy Malinoff to assemble sales force next week for a sales conferance to make sure they can handle their revenue projections. (this is important as they have aggressive Pro-Forma projections).
Sales are EXCEEDING TARGET, so they can hire more sales people, if their understaffed, to bring in the necessary revenue.
I agree we need answers to O/S....I'm sure this will be done in the Audit being conducted...Its necessary for SEC reporting.
I agree that we have encountered some major hiccups, and they basically fell on their faces (Management, but its time to wipe the slate clean & start over with the new regime).
Here's the bottom line...
All the info is here, or will be shortly (2-4 weeks).
Evaluate, buy, sell, or hold.
If its buy, get on board
If its hold, re-evalute during your 4th of july parties.
If its sell, do so & move on....No ill feelings
If its none of the above (You know who you are) GO AWAY!!!!
Dave |
