To: David McCleary who wrote (903 ) 1/11/1998 6:22:00 PM From: David McCleary Read Replies (4) | Respond to of 27968
To any new investors or potential investors: For a breakdown of the financials of FAMH according to Dunn and Bradstreet please see post 903. You will see FAMH is significantly ahead of it's industry competitors in all financial areas. D&B even went as far as to say FAMH's net worth is "significantly above the industy average". Once we see the audited financials at the the end of this month which should show earnings per share of around $0.10, a fair value of this stock with a industry average P/E of 20 will be about $2.00. Being seen as a rapidly growing company may increase that P/E. The only thing that seems to be holding us back at this time is a lack of audited numbers. The following is a recap of some of the analysis done by Dunn and Bradstreet: Net sales for interim June 30, 1997: 4.1 million Net profit after taxes for interim June 30, 1997: 1.2 million Return on sales: 30.5% , Industry average is only 1.9% Return on assets: 64.9% , Industry average is only 9.6% Return on equity: 81.3% , No industry average given Net worth "substantially above industry average" Quick ratio: 4.3 , Industry average is only 1.7. Whereas FAMH's ratio has imprioved since 1995, the industry has seen a decline. Current ratio: 4.4 , Industry average is only 1.8 Collection period: 39.1 days, Industry average is 44.2 days Cash: 39.3% of total assets, Industry average is only 11.3% FAMH seems to be VERY undervalued and quite an undiscovered gem. These numbers do not even take into account the fast growth that is expected to occur. Once these numbers are published in an audited format there should be a fair increase in stock valuation. Keep in mind though that this is a BB stock and there are certain risks associated with it as such. Dave