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

To: lowell who wrote (2536)	2/3/1998 11:35:00 AM
From: Richard V Davis	Read Replies (2) \| Respond to of 27968

Lowell; Considerable discussion has been had concerning the dilution potential of the credit line. At present time there has been no notification that the credit line has been used. Ira has stated an intent to use part of the credit sometime this year. This illustrates the greatest problem with investing in BB stocks and the discussions which grow out of that investment. With no information speculation both mild and wild runs pretty rampant. Audited certified financials and a professional IR contact at the company will make the vast majority of these posts irrelevant. As to LE benefiting from a low stock price, who knows. He has never been responsive to such questions other than categorically denying any stock ownership. Rick

To: lowell who wrote (2536)	2/3/1998 2:52:00 PM
From: Buckeye	Read Replies (3) \| Respond to of 27968

Structure of FAMH Financing Mr. Ira Monas, President, Firamada, Inc., would like you to know that FAMH has a POTENTIAL $20 million line of credit. In a phone conversation, early this afternoon, Mr. Monas stated that he might draw down this line of credit, using the following formula: Monthly Share Volume x Share Price x 11% = Available Drawdown. If the current share price is $0.35, and last months share volume is 10,000,000, then the available drawdown would be 10,000,000 x.35 x 11% = $385,000 max available drawdown. Should the share price be $0.70, and the previous months volume be 10,000,000 shares, then the drawdown would be 10mm x .70 x 11% = $770,000 available drawdown. No shares have been issued for this financing arrangement. Shares will be issued at the time of drawdown. The shares issued will be at the then current market value, issued at the time of the drawdown, and the number of shares issued will be only enough to equal the value of the drawdown. The shares issued are new, they are restricted, and they are common shares, with a non-voting clause, which may be repurchased at any time. The funds from the drawdown may be used for any business purpose, including the repurchase of the restricted shares. Considering that they will mostly be used to improve the bottom line, this sounds like a very good arrangement to me. Lowell, there is one other issue that we should discuss. I own a small company, it is not public, but if it were, I would greatly resent the comment about being put in jail, if the shareholders did not receive their perceived value for their investment. This type of statement implies that the President is untruthful in his statements to the shareholders, and it may be perceived as liable, could it be proven that such a statement undermined the share value, and caused other shareholders to lose their value. I'm certain that you understand this, but I just wanted to remind you how truly costly it can be, just to have to show up for a deposition. You really wouldn't want this. Good investing to all! I'm long on FAMH!

To: lowell who wrote (2536)	2/3/1998 5:27:00 PM
From: Andrew H	Respond to of 27968

>>With that said, I am quite surprised no one on this thread has been discussing the dilution effect from this $25 mill credit line. To me, this seems more like a deal with a VC (Venture Capitalist) firm than with a bank - cash for equity. Any comments?????<< lowell, haven't you been reading my posts--I have mentioned this at least 5 or 6 times.

To: lowell who wrote (2536)	2/3/1998 9:17:00 PM
From: JIN CHUN	Respond to of 27968

Lowell. If the dilution occurs to acquire a profitable business that will add to the bottom line, then my vote is go ahead and do it. I would much rather see them dilute the shares and increase their profits than to deplete cash reserves and go into serious debt. JMO. Jin. By the way, no offense to Little Engine. His questions have at the very least added to the depth of the DD done on this board. But why do we need an independent source to become spokesperson? Objectivity is one thing, but I would much rather have someone WITH a vested interested that is the same as mine.