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

To: OpenSea who wrote (2906)	2/7/1998 4:57:00 PM
From: Terry Lyon	Read Replies (2) \| Respond to of 27968

Jim, If you read my post carefully I did not attack LE I simply pointed out my concerns. In fact I stated that I appreciated his posts but somehow every one of them is ruined by some statement that throws me for a loop and I haven't a clue why he is going to all this effort or why he even posts here. I agree that the information is important but I have to discount it. Like you I am heavily invested in FAMH. Do you believe LE posts? Can you tell me why he posts here? I am not trying to suggest that he not post here - only why. I know that you and I post here because we are shareholders. Also I will not answer any more private posts from LE. For me it will always be public. Terry

To: OpenSea who wrote (2906)	2/7/1998 5:27:00 PM
From: Little Engine	Read Replies (1) \| Respond to of 27968

Jim, Firamada's main business is temporary staffing, with minority percentages going to permanent placement, and their financing arm. When I called the new PR firm (about a month ago?), Ira happened to be there, and I asked what percentage of revenues came from temporary staffing, and what from permanent staffing. Ira said that it was 85 percent temp revenues, 15 percent permanent revenues. I'm holding him to that, although he later told someone else from the board that it was more like 70/30. I don't know why he changed his original statement. So, I reasoned in the last post, similar "high-end staffing" firms, like HIR (to use one example) must have similar margins to FAMH reported numbers. These companies don't, however --- they are much lower. And most of HIR's revenues came from permanent placements. It's in their SEC filings for all to see. But what about the financing division? The 3rd Q press release (half of which has already been shown to be wrong) said: "Firamada's finance subsidiary created in September showed a net profit of 73,645.25, in its first month of operation." Let's assume the finance subsidiary is lending out money at high rates. Say, 20 percent. And let's also assume their expenses are very low, and leave them with 15 percent margins. So, if 15 percent of their revenues equals $73,645, then the revenues for September were $486,666! If this were a typical month, then the finance arm would bring in about $6 million per year, or most of this year's business, and most of the business in their past quarter. I think Ira would have mentioned the $6 million figure by now, if it were true. But they hardly ever mention the financing division. My guess --- and I think we can agree this is more likely --- is that the $73,645 is not actually net earnings. Or perhaps it was a one-time gain of some sort. I'm open to that possibility. For the finance arm to keep up with the 30 percent margins, they would have to loan money out at what, 40 percent? I think I would shop around a bit more if I got that offer. So I think we can safely assume the finance division is not generating 30 percent net margins. That would also make it a drag on the figures given, pushing temporary margins higher... and I think you can see from my chart that they generally don't go very high. If anyone can show me an audited, public temp staffing firm, or one that mixes temp with perm staffing, earning margins over 20 percent, I'd gladly reconsider my take on this. I can't even find one earning over 10 percent. Thanks for pointing out the future possible drag on margins from Myriad. Employee leasing, as we can see from ESOL in the chart, is a low-margin business (ESOL earned .5% net profit). The truth is out there. Good luck digging. L.E.