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

To: JOEY who wrote (1131)	1/12/1998 4:44:00 PM
From: Doug Hunter	Read Replies (1) \| Respond to of 27968

It's Monday (just a little humor)

To: JOEY who wrote (1131)	1/12/1998 8:35:00 PM
From: Little Engine	Read Replies (1) \| Respond to of 27968

Simple reasons this stock is going down... I've read through the board from the beginning lately and am kicking myself for not seeing certain patterns. A) The total lack of information (and the wealth of misleading statements) coming from FAMH. It starts from one of the press releases noted in Cheryl's initial board posting, the one called "Firamada Stock Promotion". It says that Ira will be interviewed on Chicago radio station "WBIG, 1280 AM" on 10/2/97. Two problems with that: first, I live in Chicago and tried the 1280 frequency... finding nothing. Second, WBIG is a Washington D.C. radio station that plays oldies, and has been for years. Phantom promotion? Like the phantom Miami office? The 10/31 release talks about the Tech Support acquisition (Two and a half months ago? Was this ever finalized? Will it take three months before we know anything about the Myriad deal?). The key part I see is that it talks about FAMH and Wescott "feels" they have the necessary backing for a bunch of deals. Note the word backing. Loosely translated: we're going to borrow lots of money. Switching PR companies is slick, since they can blame the old PR firm for all the garbage it released last year. But think about it: what sort of firm issues press releases without reading them? And where did the PR get its info from? FAMH is ultimately responsible for how it promotes itself. B) Wall Street knows you can't acquire companies for free. The six-month financials from last year, if we are to believe them, confuse the hell out of me. I'm using figures obtained from Brad's post, #132. It claims income of $1.26 million for the six months, and total assets of $1.89 million. Now wait a minute. FAMH was worth a total of $730,000 BEFORE the six months? It took 19 years to reach $730,000, and then in six months gained $1.26 million? What happened, they never made any money before this year? Unless the previous earnings are disappearing out the back door somewhere... or the six-month earnings count receivables (funny, I don't see receivables listed anywhere). Post #1015 from Brad... "Ira told me straight out that he already has the money for this acquisition. He didn't hesitate." If Ira already has it, he borrowed it. FAMH's liquidation value ($1.89 million in July, far as we know) couldn't buy a $60 million company, as well as pay off its outstanding tax lien. More millions to borrow. Fourth quarter predictions of .09 per share... they must have had a sensational October, since hiring generally dies in November for the year. Regarding the "patience" of most posters on the financing for the Myriad deal... please look at past posts on acquisitions. FAMH never says how they are financed. I doubt they will on this one, either. I'm betting they will assume the millions in debt needed for the purchase, and then release the audited financials for last year. It now makes sense to me why they put off the acquisition till this year. I bet the Tech Support deal was put off for the same exact reason. It's bait and switch. They will promote the company they WERE last year, while you own the debt-laden behemoth they are becoming. Or perhaps they'll just issue a bunch of preferred stock (since the common won't look too attractive at .25 or so). BTW, I called Myriad today and talked to a guy in accounting. He told me the tax lien had been "taken care of" and quickly hung up. For what it's worth. The first financing answer stockholders will probably have is a sudden huge debt/equity ratio and falling earnings. Everyone keeps saying "if the numbers pan out..." If they do, I'll lose most of my investment. The numbers scare the hell out of me. I was suckered in by the numbers, too. They must think we are idiots.