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

To: Andrew H who wrote (3427)	2/17/1998 2:08:00 PM
From: JIN CHUN	Respond to of 27968

Andrew, in response to your post: <<Everyone heard Ira on the conference call say he intended to borrow 12MM from the line of credit. $12MM dollars at .25./share is 48MM shares. >> Brad, in his visit with Ira in Phoenix, relayed this on his post: <<He indicated that with the acquisitions of Myriad, the NY company, and another California company, combined with a couple of new office openings, FAMH will have a pretty full plate. He then wants to hold off on further acquisitions for the time being, so they can properly adjust to these "big bites" they are taking. He doesn't want to add any more for a while unless it's a deal he just can't refuse.>> This, IMO, indicates that they will not be utilizing the line of credit for awhile, hence no further dilution. Using the Myriad acquisition as an example, part of the deal was about 2MM in restricted stock. This was before the line of credit, and they had the cash on hand, but as in the above example, 2MM shares @ .30 == $600,000. Hypothetically, if the credit line were used, that would have created a 6% dilution, while increasing net revenues by 100%. That is simple math my friend, and it is shareholder friendly.Jin.

To: Andrew H who wrote (3427)	2/17/1998 2:10:00 PM
From: John Fairbanks	Read Replies (1) \| Respond to of 27968

Sorry... I meant that it is impossible for you to state what the dilution would be since you don't have any idea when the line of credit would be invoked. Ira would be a fool to do it at these prices. Unless of course the impact on EPS would be favorable. Yes, the dilution is fact, but without knowing the EPS facts you can't tell if it is good or bad. If the dilution means that we get .15 EPS instead of .11 then they can dilute to their hearts content. My point is simply that you don't know, and not knowing you should examine all the possibilities rather than focusing on the gloomy one. If you go back through my posts you will find that I have not been overly optimistic. I have gone into this with both eyes open. I have been burned in the past and I know how to look both ways before I cross the street.