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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services -- Ignore unavailable to you. Want to Upgrade?

To: TINKER TAPE who wrote (224)	11/29/1997 11:28:00 AM
From: John Fairbanks	Read Replies (4) \| Respond to of 27968

Obviously FAMH could do so, but they just completed a 504 offering and they didn't increase the outstanding shares to do it. There used to be only 2-3MM in the float, now there are 7MM, but the total shares outstanding shares stayed at 20MM. In other words, since this company is highly profitable and just finished a special stock placement to get capital for expansion and aquisitions I don't think we need to worry about the number of outstanding shares increasing. I also believe Cheryl spoke to the company and they said they had no intention of issuing additonal shares in the foreseeable future... Cheryl? The reason I have sold all my penny stocks to buy FAMH is because they are making money. They aren't coming out of bankruptcy. We aren't praying they will be able to bring some sexy, futuristic product to market before they go broke from R & D costs. Unlike most penny stocks, they aren't in need of huge captial while they try and move from a development stage company to an operational company. Granted it isn't as fun to talk about at parties... not like owning stock in a laser company or a company working to build cities on Mars. FAMH is, however, in a highly profitable, low overhead industry. They have been operating successfully as a private company for 19 years and I believe only went public to get the capital to expand further. Anyway, after all this rambling I guess the answer to your question is "Why would they do that?". Seriously, if you look at what they are trying to do, ie: become a reporting company in the next few months and move to the NASDAQ sometime next year (which will require a price of either $3 or $4... there has been some debate...) they will not do anything that will hurt the stock price. They also have their the institutional investors who are evaluating this stock to consider. IMO, the ONLY thing keeping this stock from being a $3-$4 stock (they certainly have the earnings for it!) is the lack of audited financials and a 10K. Both of which the company is working on solving right now.