To: Brad who wrote (522 ) 12/26/1997 3:28:00 PM From: Wayne J. Read Replies (1) | Respond to of 27968
Hello! Brad, Thank you for sharing the " very interesting " comparisons for the Staffing Industry! Upon reviewing the seventeen Staffing Companies ( that you so graciously provided!) , I tried to break it down to a level where I wanted to be sure that I wasn't just getting myself all excited about the FAMH opportunity, simply because I am an FAMH Shareholder! ( Sometimes it can be very easy for me to get tunnel vision! So I tend to be an ongoing skeptic to myself, in attempts to not get carried away with what I am wishing/hoping will happen with my investment, but rather what realistically could take place with my investment in a "worst case scenario!". I have been trying very diligently to find something that to me appears a significant red flag, so I can be more critical of FAMH ( in a healthy and productive manner! --coming from a Shareholder's perspective!) As part of my efforts, I did some "number crunching!" and came up with the following observation! ( Keep in mind just my own opinion!). Of the seventeen Staffing Companies! The highest P/E Multiple was 53.3 ( Unbelieveable! But Apparently Accurate!). The lowest P/E Multiple of the seventeen Staffing Companies was 14.3 !!!!!!! Then , I decided to take a worst case scenario, and make it even worse for my projections/speculations for FAMH! I took the lowest P/E Multiple of 14.3----------then divided it in half, bringing it to a P/E Multiple of 7.15 !!!!!!! ( How low can I go????) Using the example ( just a guesstamit!) of an EPS for FAMH of .20 multiplied by the P/E Multiple of 7.15 one could come to a speculative price per share of $1.43 !!!! ( Keep in mind that I used the lowest P/E example of the seventeen Staffing Companies, then divided the lowest example by half!) Just my own opinion! But! I think that FAMH is going to have a very interesting 1998! ( And hopefully so do it's shareholders! I'm betting on it!). Best Regards, Wayne J.