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

To: Richard V Davis who wrote (1525)	1/16/1998 9:17:00 PM
From: VBH	Read Replies (1) \| Respond to of 27968

I have yet to play this game for a full year..but was wondering is it always like this shortly b4 a company intends on coughing up its audited financial info??? geezlouise...anyone dare to speculate on how the .19 trade will be percieved? A patient man...

To: Richard V Davis who wrote (1525)	1/16/1998 9:30:00 PM
From: Little Engine	Read Replies (3) \| Respond to of 27968

I did not want to cloud the issue, as perm placement is not FAMH's main business. Not even close. You gave me a theoretical company in the perm placement example. Theoretical in the sense that I know nothing about it, its offices, its possible expenses or the financials it reports. So it looks fine to me. I don't doubt that it could be possible. I am dealing, however, with a company that I know plenty about here. As I have stated before, the 85/15 temp to perm ratios came from Ira Monas, the Firamada president. I also stated, in the original post, that they place people who have been working in temp positions for a while into those positions permanently. So there must be a steady stream of temps to keep the process going. If your office works with mostly temps, and few permanent hires (given the average revenue ratio from Ira), then you would have to fire most of the temps before the quarter, and hire out the rest permanently very early in the quarter (like the first day, so that they do not keep working temp and cut the ratios), to come up with a 90%+ ratio, as you used in your example. They are not hiring people off the street, as your friend did. In addition (as I said before), in order to keep such a high ratio, they would have to quit using temps (the normal bulk of their business), for the rest of the quarter. With no temps to pay, and no temps left to place permanently, the office would have to close for the rest of the quarter. I don't see the point in that. Do you? I stay on the thread since I can now offer an unbiased opinion, something those who own the stock cannot. I want to. I could have lied and said I still owned the stock. I'm not that type of guy. I'll take the abuse. Incomplete data? I work with what FAMH has given us, which is to say, not much. I don't need "complete data" to show that they could not possibly have had such high earnings. I used very conservative numbers, giving FAMH the benefit of every doubt, in order to show that. Yes, I did assume a few things, such as the temps are NOT being farmed out at six times what they are being paid. Sounds safe to me. You don't have to swallow the whole pot of soup to see if it's hot. Once I showed (to my satisfaction -- I can tell you have not done the same math -- if you have, please lay it out for all to see -- I would hate to see it go to waste, as it takes quite a while!) that it was impossible, I quit. Why go further? The company has been strung up by its own numbers. The ratio, earnings, and revenues all came from the company. If you can show -- given the numbers for the third quarter that FAMH gave us -- how they could achieve such earnings with ANYTHING CLOSE to an 85/15 ratio, I'd be glad to see it. Do 50/50, even. Post it here, as I have, and we can discuss it then. Go for it. I look forward to it. You can't. Like Barbie said: "Math is hard!" But very useful in this case. I'm sorry that they appear to be faking revenues. The third quarter financials promote the idea of getting "something for nothing." Glad it's not my problem anymore. I guess no good deed goes unpunished. Somebody tell me differently? Best wishes, Little Engine P.S. Now that I have filled John Fairbanks in on the earnings from the financing division, perhaps you can ask him (if he would be gracious enough) to review my numbers from the original post. He's got a degree in math, and I will <gladly!> defer to him if he can show a reasonable way they made a 74 percent margin in the third quarter.