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

To: Brad who wrote (539)	12/28/1997 9:47:00 AM
From: Tim K	Read Replies (2) \| Respond to of 27968

Comparing FAMH to other staffing companies increases my comfort level with this stock. I looked at some others before investing and was encouraged by the high growth and P/E multiples, but concerned that the avg. profit of around 2-3% of sales made the FAMH press releases EPS look exagerated. Brad posted a list of the industry - this time I looked closely in Yahoo Finance at two small companies that are similar to FAMH. ASI solutions (ASIS) & General Employment (JOB). ASI has sales of $23mil and profit of 7.7%. JOB sales $29mil and profit of 8.5%. They are in the niches that FAMH is targeting, except they don't offer payroll financing which according to FAMH is more profitable. FAMH estimated an annual EPS of $.21. With 7,000,000. shares $.21 calculates to $1.47mil. 1st and 2nd quarter sales have been reported at $6mil, and based on 3rd and 4th quarter earnings increase estimates provided by FAMH and acquisitions, sales are likely to be up 30% to make 2nd half sales $8mil est., for a total of $14mil. A profit of $1.47mil on $14mil in sales is 10.5% and not out of the ballpark compared to the other two small companies. These are estimates based on information posted here and in the press releases, so they are as accurate as their sources. What are the diferences between these companies and FAMH? The other two have audited financials AND THEY ARE LISTED ON AMEX AND NASDAQ! Of course until we see the audited financials we have to go on press releases and DD performed by ourselves and others, and we may find there were exagerations. Even so, at an EPS of just $.15 and p/e multiple of just 15, we get a stock price of $2.25! At an EPS of $.21 and mult. of 27 (ASI) you get $5.67 per share!!! As far as timing... Its better to release audited financials in Jan or Feb than during the Dec. sell-off IMO. I prefer to see the stock climb steadily on fundamentals toward listing than to get volatility and shorting. Does anyone know where to get info. on the new NASDAQ structures? Which listing is FAMH looking at? I guess I'm caught up now. I hope you all had a great Christmas, and I'm more optomistic than ever about the new year for all of us!!! Tim