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

To: carolm who wrote (1345)	1/15/1998 1:08:00 PM
From: Little Engine	Read Replies (1) \| Respond to of 27968

Carol, I am unclear how the "revenues" here should be figured. I can't see how one could count the employee salaries as revenues, since Myriad doesn't appear to pay the salaries. Far as I can tell, never touches them. I can see how they make a profit, but not how the profit margin could be very large. FICA, income taxes, workman's comp... aren't those the same amounts, no matter what the size of your company? How could Myriad justify charging, say, a 10 percent markup on FICA payments? With 401(k) payments and insurance, yes, I could see some margin on getting group rates. But not a huge one, especially once the bulk of the revenues (i.e., taxes) are taken into account. Myriad's business, at least the profitable parts, is not unique. Businesses have been setting up dummy "groups" for a long time. I talked to the head of one of them, I believe they went by the name "American Consumers Union", about 10 years ago. It was an independent insurance agent that served as a clearinghouse for individuals seeking group rates. They set up the "union" in case the gov't mandated that those seeking group health rates actually belonged to a group.

To: carolm who wrote (1345)	1/15/1998 1:09:00 PM
From: dennis foster	Respond to of 27968

Carol, Myriad's payroll etc. business seems to be a very compatible with FAMH. You mentioned that Myriad charges a "small fee and some of the difference in being able to bulk buy insurance and benefits" didn't I read in a previous post That Ira mentioning that FAMH could save Myriad money in this area? Dennis