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

To: Little Engine who wrote (4360)	3/1/1998 2:09:00 AM
From: JIN CHUN	Read Replies (1) \| Respond to of 27968

LE, I cannot, and will not defend those who have made personal attacks, even when it is myself, or you. As far as the office openings are concerned, there are factors which I cannot be aware of simply because I am not in the loop. If I remember correctly, Ira had said to someone on this thread that the cash for the Myriad acquisition was on hand. As far as the whereabouts and uses for the funds received from the issuance of shares since November, I personally do not know the details. I think a logical assumption would be that the funds were used for the acquisitions and the assumption of debt. I do not think anyone hear could say that the credit line has already been used. Once again, the Myriad acquisition was incredibly cheap when compared to the revenue and increase in eps that it gives to FAMH. The ratio of dilution to increase in eps far outweighs in favor of the shareholders and the company, as well as the strategic advantages it offers to not only consolidate administrative functions but to expand markets and services as well. I have not been able to find a company that I can compare with Firamada in the sense that you are alluding to. Yes, I can compare some valuations such as PE, market cap, etc, but the stage of the company, it's particular diversification, etc, it is difficult. Even when you take a look at the sector, companies that are grouped together are not completely alike. ASI with franchised offices, NovaCare servicing it's parent company. Perhaps Manpower and Kelly Services are alike, except that one is diversified in different lines and countries. So, IMO, you must take each company's situation individually. Even within the same sector, the margins vary depending on what the bulk of their revenue is focused on. Until we have the filings, audit, etc., it is harder to dissect. I can say, however, that the balance sheet for the first half of '97, even if you inflate the tax figure to 40 percent, shows that the company has a substantially lower overhead than any other company in the sector that I have found. This, IMO, is simply an indication of the stage in the companies evolution. I am comfortable with my investment, simply because I've done enough research that satisfies my comfort zone. I encourage others to do the same. Jin. Out of the mud for now.