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

To: Munch who wrote (6818)	3/17/1998 2:17:00 PM
From: John Fairbanks	Respond to of 27968

Looks right to me. I'm not even trying to momentum trade this puppy until it gets a lot closer to fairly valued... it's too easy for a surprise press release or a serious buyer to drive the price up at these levels. With the amount of upside that I see, I'm content to watch and wait.

To: Munch who wrote (6818)	3/17/1998 2:19:00 PM
From: Double Dipper	Read Replies (1) \| Respond to of 27968

Munch, Thanks for your contributions. You bring sound research to our thread and I appreciate you sharing your DD with us. Kevin

To: Munch who wrote (6818)	3/17/1998 2:51:00 PM
From: Dan Major	Respond to of 27968

Munch, I am Long FAMH. I see great potential. But what makes you think that just because a stock is on NASDAQ it automatically gets fairly valued? Things don't work that way. there are a heck of alot of undervalued stocks on Nasdaq, AMEX, NYSE.( Although I do agree that NASDAQ listing will help incredibly!) The only reason I say this is because I think everybody's expectations for this stock are maybe too much. Look at what this Company and its stock has done! We are getting so spoiled by this Co. that we can't go 24 hour without a news release. How much more news do we need? Its not too often that an opportunity like this comes along with an BB stock.IMHO But maybe we should lower our expectations and we won't be disappointed but rather pleasently surprised just my 2 cents Dan

To: Munch who wrote (6818)	3/17/1998 3:11:00 PM
From: Sooomuchfun	Read Replies (5) \| Respond to of 27968

Not to burst anyone's bubble, but I think Munch was a little aggressive on the back of the envelope. First, per Ira Monas, their margins on business is 15-18% not 25%. Second, the IRS and state taxing authorities require taxes to be paid on earnings. This will generally run 40% of pre-tax income. Third, when you buy a company you usually end up with some intangible assets that must be amortized. Fourth, the settlement with the IRS will impact EPS by $.025. The final points I'd like to make relate to the financing division and the Morton Downey show. I have trouble understanding the concept of payroll financing. Most companies would use a line of credit from their bank to fund working capital requirements. The interest rate would typically be lower unless the company was a major credit risk. Counting on $1.5 million in pre-tax income would scare me. As for Morton Downey, one way for any company to fail is to lose focus (more so with a small emerging company). There is absolutely no synergy between these two. Something smells fishy here! Based on my back of the envelope, Core business with $1.8 million in profit and Myriad at $2.7 million in profit, assuming $0.0 from Finance division and Morton Downey,$1.0 million IRS settlement payment and finally 40% tax rate ..... I'm left with EPS of $.0425. A lot lower than the $.26 by Munch, but if you use a 30 multiple a stock price of almost $1.30. Over 100% from today's level. Now before everyone starts assuming (incorrectly) this is Little Engine, it's not. I don't own any shares yet, but I am looking into this a little further. I'm neither a short or a pump and dump, just someone who works with numbers every day and sees things a little differently than Munch. Good luck to all.

To: Munch who wrote (6818)	3/18/1998 8:43:00 AM
From: Munch	Read Replies (3) \| Respond to of 27968

Kevin W, Soooomuchfun, Dan Major, Thanks for looking at my EPS calcs in post #6818. I did fail to account for taxes. At 40%, that would drop my EPS calc from $0.26 to about $0.16. However, on my estimates for each of the divisions, I don't think I was overly aggressive: 1)I forecasted core business growth of 25% with addition of IT division and new NY office. The profit margin of 25% was based on '97 profit margin ($2.2M profit on $8.8M rev) 2)Finance division ---> All I did was multiply the Q1 profit forecast in IRA's last PR of $374,000 by 4. This assumes NO growth for the rest of the year. 3) Myriad growth of 10% and margin of only 4% 4) Morton Downey -> I used on $50K per show (CC used $100K+ per show). I only used 80 shows for the second half of the year. 5) Somebody followed up by saying that my 30 PE was off and that I should have used NASDAQ PE of 20. I used the PE of 30 which is lower than the industry. All-in-all, I don't think I was too outrageous with my calcs. I used the data that was available to me. FAMH is still undervalued. May be time to go out and get some more. Go BC ! (oops, they're not in the tournament) Munch