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

To: JIN CHUN who wrote (3155)	2/13/1998 1:07:00 AM
From: Little Engine	Read Replies (1) \| Respond to of 27968

Jin, I respectfully disagree with you. But then, you knew I would... I believe there are some profits coming in... just nowhere near the .11 they are claiming. I've outlined why. The .11 would equal approximately 30 percent net profit, which no one in the industry even approaches. And Ira has said, more than once, that the gross was 30 percent. They can't be equal. FAMH has plenty of expenses to subtract from the gross, as you pointed out. Again, I ask what acquisitions you are talking about. As far as I know, nothing's final. The Myriad deal included only a few hundred thousand in cash... mostly assumption of debt and freshly minted stock. They had more than enough money from the IPO, and the two subsequent 504 stock sales, to pay for the Houston office opening and the Trump Tower rent. Even if AIG, etc., wanted to look at Ira's books, without an audit, what's the point? You assume that Ira told the truth when he said "audited financials" showed Myriad earned $1.8 million last year. Big assumption. Haven't we been told lately that the Myriad audit is NOT yet done? So how could we trust the rest of what Ira said? Are we to take Myriad management's word for it, when they skipped out on paying millions in taxes? Besides, $1.8 million would be at least three times the margins similar companies make. Another case of unbelievable margins. Even if Myriad could make $1.8 million this year, the $1.5 million tax debt, if I recall correctly, is to be paid back within a year. So kiss most of that money goodbye. And if they borrowed $12 million from the mysterious "financial concern"? A lot more payments. What really makes me think that the company has little money is that they act exactly that way. They have had four stock sales to raise money in the past year. So why do they still have to issue stock, assume large debts, and/or borrow money to acquire anything? It would have been easier, less costly, and smarter to pay cash. If they had it, of course. We're each comfortable in our positions. Nothing wrong with that. Good luck to all. Hope Ira actually puts out some numbers tomorrow. L.E.