(Updated 3-8-98) GENERAL "OVERVIEW" INFORMATION on FAMH:
(This information has been compiled by me, an independent investor, and is presented to be as accurate as possible according to what information I have been able to obtain from public and private sources. This should NOT be assumed exact, but is presented as a starting point for research purposes.)
COMPANY:
Firamada (OTC:BB FAMH)
40 Wall Street, 32nd Floor
New York, NY 10005
Phone number: (212) 425-2168
CEO: Arif Adam
President: Ira A Monas
PR FIRM: Anna Love at Preferred Financial Marketing (310)-789-1132 in California.
FOR MORE INFORMATION:
Call Anna Love at Preferred Financial Marketing (310)-789-1132
Brokers & Market Makers call Robert at Firamada (FAMH): (212) 425-2168
CONFERENCE CALLS: Held most Thursday afternoons in March at 4:15 PM (EDT)
Live Call 1-800-860-3035.
Replay available 24 hrs a day for 3 days 1-800-567-1533.
AUDITING FIRM: Marcum and Kliegman mkllp.com
SEC FILINGS: FAMH begins as a reporting company effective Jan 1, 1998. Their first Audited Financial Statement is scheduled to be made public shortly. The 10-K for 1997 is supposed to be filed with the SEC as soon as possible.
PR Newswire INFO PAGE: prnewswire.com
(This includes recent Press Releases)
E-MAIL: irafm@aol.com
EARNINGS:
1997 Revenues: (Estimated) $8.5 Million
1997 EPS: 10.85›
1998 Revenues Projection: $80 - $100 Million
1998 EPS Projection: 25-30›
TOTAL SHARES AUTHORIZED: 100 Million
TOTAL SHARES OUTSTANDING: Apx 41 Million
FLOAT: Apx 10 Million
INSIDER HOLDINGS: Apx 31 Million (Virtually ALL Restricted)
ANNUAL CORPORATE REPORTING DATE:
March of each year
GENERAL BUSINESS INFO:
FAMH is a temporary staffing company. They currently have 7 offices (not including the corporate office at 40 Wall Street, NY, NY).
Since several of the offices have been acquired, you may find them under the following names: Encompass Staffing of Success Staffing.
FAMH just went public last spring (1997), so this is their first year as a public company.
FAMH says their profits are expected to be slightly higher than the industry average because they are moving away from the low margin business (low range bulk temps) and focusing, instead, on the high profit end of the business (upscale permanent placements).
FAMH also does payroll financing for other staffing companies. Firamada's finance subsidiary, started last September, showed a net profit of $73,645.25, in its first month of operation.
EXISTING OFFICES:
Encompass Staffing
67 Wall Street, Suite 2411
New York, NY 10005
(212) 269-4777
Encompass Staffing
2730 North Stemmons Freeway
West Tower Suite 1210
Dallas, TX 75207-2256
(214) 688-0711
(888) 523-9962
Encompass Staffing (New office opened in November, 1997)
10850 Richmond Ave
Houston, TX 77042
(713) 334-5665
Success Staffing
602 W 6th St., Suite D
Rolla, MO 65401
(573) 368-5782
(888) 368-5782
Success Staffing
3020 E Camelback RD, Third Floor
Phoenix, AZ 86016
(602) 955-6657
(888) 956-6657
Warren Temporaries
New York, NY
Acquired on or about 1-28-98
(Still researching address & phone)
Miami, FL Office - Now opening.
Office Space Leased.
Manager Hired.
(Still researching address & phone)
PLANNED ADDITIONAL OFFICES (New & Acquisitions):
FAMH is completing an acquisition of Myriad Employment, a private employee leasing company that operates in California and Utah. The company says Myriad did approximately $45-50 Million in revenue for 1997. Of this amount, about $38 Million is in long term contracts.
Myriad was acquired for 2.5MM shares of stock, $350K Cash, and assumption of approximately $1.5MM in debt. The debt is also personally guaranteed by the principals of Myriad. The 2.5MM shares are restricted, some for 12 months, some 18 months, and some 24 months.
Myriad Employment, 249 E. Ocean Blvd. #800, Long Beach, CA 90802
Phone: 562-624-6277 Fax: 562-624-6292
To facilitate growth by acquisition, Firamada has obtained a line of credit through an equity investment in the amount of $12 million US dollars through Bristol Asset Management of Los Angeles, CA. I believe FAMH can draw down against the line of credit, but the amount of each draw down is tied to the trading volume for a given period of time. I believe any shares involved are restricted for at least a year. FAMH President has described the agreement as being very "shareholder friendly and management friendly."
LONG ISLAND, NY - New office planned to open in the next few weeks.
CALIFORNIA - Acquisition of another company (in addition to Myriad) is in process. This acquisition is waiting on the results of a probate court hearing.
NASDAQ or AMEX LISTING APPLICATION:
FAMH says they currently meet ALL the requirements for listed as a NASDAQ Small Cap company with the exception of share price. FAMH is considering either NASDAQ or AMEX for listing. I believe the application is being prepared. The process is expected to take 90 to 120 days.
Here is the site that lists the requirements for NASDAQ Small Cap Listing:
nasdaq.com
Here is the site that lists the requirements for AMEX Listing:
amex.com
OTHER INFO to Consider:
1) Temporary staffing is a hot industry. It is also a highly profitable industry.
2) Firamada is negotiating a settlement of a disputed tax lien in the state of Texas.
3) The predictable thing about rapidly growing companies is that many things are "unpredictable." The dynamics of growth necessitate adjusting to changing circumstances to take advantage of opportunities. Taking advantage of opportunities also carries the element of increased risk. Evaluation of the benefits of "opportunity vs. risk" must also be considered.
4) Ira Monas (President) seems to have a tremendous talent for "negotiating deals." He is a driving force behind the growth of FAMH. Sometimes the abrasiveness of that talent can easily seem abrupt or offensive to shareholders.
5) FAMH recently agreed to Produce the new Morton Downey Jr Show. This is expected to begin taping at HBO Studios in NY in April 1998, and is currently scheduled to be aired in 105 cable markets across the US. FAMH says they have already sold sponsorship sufficient to recoup the cash outlay. This program is expected to generate over $100,000 per DAY in revenues to FAMH alone.
6) Notes from the Conference Call of 3-5-98
Message 3615507
CLIENTS:
Some of their recent long-term contracts have included Colonia Insurance Company, Coca-Cola Merchandising - Phoenix, AIG Insurance, Republic National Bank, Tokyo Marine, Arizona State University and Arizona Cardinals Football Team (thru Finehost), The Phoenix Suns Basketball Team and The Phoenix Coyotes Hockey Team (thru Restrua), Auto Zone, BF Goodrich Tire Company, Goodyear Tire & Rubber, Hilton
Hotels, 1-800-FLOWERS, General Electric, Allied Signal, and Deloitte & Touche.
COMPETITORS:
FAMH says their main competitors are companies like AccuStaff and Account Temps
FAMH IS DRAWING ATTENTION:
ED TAXIN'S FINANCIAL HOUR has picked FAMH (Firamada) as one of the "Top-10 Stocks to Watch in 1998." "Ed Taxin's Financial Hour" is on 32 radio stations across the country. The company said this was NOT a paid promotion.
Kostech Research and "Undervalued Dog" have rated the company a buy up to $1.25
From Wall Street West Newsletter- Feb 28, 1998 issue:
wallstreetwest.com
"The news on "the street" has it that the company will soon report earnings of .11 per share. If this is true, the stock price should head up to the $2 area. We will not be buying unless this thing moves past the .40 area."
INVESTOR RELATIONS:
FAMH "Investor Awareness" promotions will be carried on 85 cable TV stations, in-flight talk on United Airlines & TWA, and the Morton Downey Jr Invest America TV Show. These ARE paid promotional programs.
Invest America Web Site:
cfgworld.com
Conference calls to Brokers, Fund Managers, and Investors will continue most Thursday afternoons in March at 4:15 PM (EDT) at 1-800-860-3035. The "replay" of this call can be heard 24 hrs a day for 3 days by calling 1-800-567-1533.
Firamada has also publicized recent press releases in INVESTOR'S BUSINESS DAILY (1-2-98 issue and 3-9-98 issue) and BARRON'S (1-12-98 issue).
INDUSTRY POINTS FROM SOME POSTS ON SILICON INVESTOR:
"Contract Employee is crucial in all business today as I see many firms and the Government using staffing for many more projects as they are started." - Jim, post #70
"...executive placement which is REALLY profitable." - John, post #72
"Labor shortages will remain a big headache, with many managers particularly worried about the lack of qualified help. More firms will hire temps and lease workers,... a booming business. Let's managers concentrate on their core business while outside outfits handle the hiring, firing, payroll, insurance and job training chores. "
The Kiplinger Washington Letter ---- Nov 14, 1997. - post #228
"I saw a news show on TV a month or so ago that indicated that the US work force is starting to change drastically. I don't remember the numbers exactly, but it was an extremely high percentage (like 50% to 70% or so) of the working force over the course of the next 5 to 10 years would not be working regular full time jobs. They would be
working either for themselves or working temporary jobs. People are wanting to become more flexible in their employment." - Cheryl OD, post #235
Government Addresses Tech Worker Shortage (01/12/98; 7:03 p.m. EST)
By Mary Mosquera, TechWeb
"The shortage of skilled high-tech workers is so urgent that the Clinton administration announced Monday it will help train more computer programmers and other technical workers. The Labor Department has projected that the United States will need 1.3 million more computer scientists, engineers, systems analysts, and computer programmers between 1996 and 2006, calling it `America's new deficit.'" (post #1140)
SILICON INVESTOR THREAD:
FAMH - Research Posts Only Thread:
Subject 19418
FAMH Chat Thread:
Subject 18031
INDUSTRY INFO in General:
Statistics from NATSS (National Association of Temporary and Staffing Services) indicate that the temporary employment business is one of the three fastest growing industries in the United States.
Here are some interesting posts about the industry in general:
Message 3462549
Message 3496110
Recent articles about the Industry in general:
sireport.com
FAMH vs. INDUSTRY ANALYSIS
(SI post #5125 by Brad)
Message 3610395
(SI post #1441 by Keiko)
Message 3182596
(SI post #903 by Dave)
Message 3124739
CURRENT QUOTE:
(Type "FAMH" in the "Real Time" box)
freerealtime.com:8001/
or 15-minute delayed with news:
quote.yahoo.com
CHART:
tscn.com
HISTORICAL PRICING: (Type "FAMH" in the Symbol box)
tradepbs.com
INSIDER BUYING / SELLING REPORTS: insidertrader.com
WHY I LIKE THIS COMPANY:
This business can be very easily understood. It is not something that requires years and years of scientific research or something "deep" like that.
This is not a developmental company.
The company and its business can be visited in various locations across the USA. It is NOT off in some other country making it more difficult to verify.
The company is growing rapidly in a very hot industry.
Firamada is profitable NOW.
PLEASE NOTE:
I am NOT associated with FAMH in any way. I am an individual investor with my own opinions. I don't give advice. Questions should be directed to the appropriate source, many of which are listed above. Everyone is urged to do their own research before investing in anything.
Best wishes,
Brad |
