PHarris: Caution on interpretation of numbers, and posts, including this one.
FAMH may well have been referring to the new gross "sales" expectations when saying they were a $55 million company, although based on their "puffery" the number may be a little higher, or lower. This number is different from the market capitalization(which can be irrational), or the perceived value to a potential purchaser.
A potential purchaser may value the company at 3-7 times net earnings, or may use some other form of valuation. Look at what FAMH paid for Myriad, I forget the actual numbers, but it was less than $5 million for approximately 45 million in sales.
Taking the dangerous job of extrapolating, plus assuming management is able to grow the company some......, say to $75,000,000 in sales then the company may be worth: 1)$8,300,000 (based on % of gross sales)or, 2)if they had a 10% net earnings(which appears to be 3-5 times higher than many other comparable businesses)and assuming the value multiples and shares, the value may be $22-37 million, or $0.31- $0.53 per share.
Dropping back to the earnings of numerous other temporary "staffing" companies, which appear to be in the 1.6% to 3.5% range, then the "value" numbers' range becomes $0.05 to $0.19 per share.
Yet when all of this is said and done, IT IS ALL SPECULATION.
Stock holders do not really know the status of the company, or its potential. Skepticism should rule until a verifiable track record is established, and you should be skeptical of all posts on threads, including this one. The mis-interpretation of a single word, or phrase can severely skew the value of the data. There were many, many posts which stated FAMH was intending to "produce" the Morton Downey, Jr. show. Looking back at the press releases, it was clear they were going to "provide production funds". A distinct difference of fact. One is a cash drain, he other revenue. Again, assuming the dangerous position of reading between the lines, it appeared FAMH was going to be an advertiser, maybe the primary advertiser on the show, no more .......no less. They have since backed away from that "opportunity". Accurate wording is critical.
This is a long response, and I now see you have been flamed already. This is only one persons unprofessional opinion. Be a skeptic, dig deep, and decide if you may be pleasantly surprised, or lose. Roll the dice, and good luck. |
