Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Sooomuchfun who wrote (6827)	3/17/1998 3:21:00 PM
From: John Fairbanks	Respond to of 27968

Appreciate your input! Basically every attempt at calculating a value for the company comes up with a verdict of "undervalued" although the results may differ. The only dissenters have been those who claim Ira is just plain lying about the numbers. Until we end up in a range more in the middle of people's "fair valuation" calculations I think this is about the safest BB bet out there. It will be interesting to see if we form a new base here or if we rebound tomorrow.

To: Sooomuchfun who wrote (6827)	3/17/1998 3:23:00 PM
From: Forest Gump	Read Replies (2) \| Respond to of 27968

I am assuming (I think correctly), LE has changed the names to protect the not-so-innocent. Sooomuchfun, you write like LE, you sound like LE, .... You are a visitor, not a paying member. What's the matter LE, couldn't afford another subscription

To: Sooomuchfun who wrote (6827)	3/17/1998 5:43:00 PM
From: Lord Smooth	Respond to of 27968

I agree with everything you wrote. However, I would convervatively add $1 million for the finance division as they recently reported around $300,000 for the first quarter. I agree with you about Morton Downey Jr. show. Including $1 million from finance division and using the rest of your figures, I arrive at around $0.07 EPS on 40 million shares outstanding. Using the more conservative 20x multiple in my opinion you get to a $1.40 stock price. If you dig deeper into this company, you should also try to discover the structure of the "credit line" which seems not to be really a line of credit of all but a promise of money to FAMH for dilutive securities. Everytime I've faxed the pr firm a specific question, especially about this, they answer it on a conference call with general answers that don't get to the heart of matter. Also, I don't know what to make of the reverse merger: is this just a reverse split in disguise or will it really speed up listing on Nasdaq? Until I hear specific answers to my specific questions I will remain a weary shareholder, but nevertheless happy with my recent 100% gain. We really don't know anything about this co. until we see the audited financials and see mgmt following through on its promises. I hope mgmt soon learns that credibility is the most important asset a growing company can have. They are better off saying nothing than promising things and not following through. While intuition says that mgmt is ok and is just bungling from lack of experience with dealing with shareholders, with bb stocks I rather trust an SEC document than intuition. Thanks for your input. I look forward to reading what more you come up with. Schopenhauer

To: Sooomuchfun who wrote (6827)	3/17/1998 6:00:00 PM
From: Mark[ox5]	Respond to of 27968

Sooomuchfun, Thanks for your post.. I think you are doing it right by being "conservative" while Munch is on the more aggressive spectrum. The true value is hopefully somewhere in between. Thanks for posting your numbers and leaving yourself open for criticism. Unfortunately, this thread is turning into Salem in the 1770s... (she dissents! She must be a witch!) (He doesnt think its worth $5! He must be Little Engine!) Sheesh people lay off.. its nice to see new ideas by new people who arent "super bulls" and lay perspective on FAMH. I dont have an envelope but I am still trying to figure out how Ira is going to make .25 to .32 in 1998 based on Famh + Myriad + a small company in NY. Famh itself made .1085 on 22M shares.. roughly. So now we have roughly double the # of shares.. so you can instantly halve the EPS. (making it about .055) Lets give it a huge growth rate in 1998 of 50% (IT objective, new offices, etc) (so +.03 in 98). That gives you .09 EPS total. Then you add on Myriads profits to that.. does that take us from .09 to .25?? MDowney show at the earliest will impact 3Q 1998 since the show wont even start until June. This scenario is disregarding any aquisition costs for Myriad as well. I know everything is 1:4 based on the reverse merger but the #'s are still the same, just in a different proportion. So after all that the co. is still granted undervalued.. but where is Ira getting .25 to .32 1998 EPS? (PRE-reverse merger) Maybe that $1M an episode thing? Shaky... seems like he is basing most of his company's EPS not on the core business (staffing, payroll) but instead on a TV deal. Comments? Wondering, Mark

To: Sooomuchfun who wrote (6827)	3/18/1998 12:03:00 PM
From: JIN CHUN	Read Replies (1) \| Respond to of 27968

Soomuchfun, I'm not a CPA, just a layman concerning these matters, but: <<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. >> If I'm not mistaken, my own memory of a CC call specifically recalls Ira saying that their gross margins were in the high 20's or low 30's. If you are talking about their net margin, then maybe. Second, you are right about the 40 percent tax, but that is ameliorated by several factors that will help in the eps calculations. Third, how are assets amortized? I thought that amortization was basically putting money aside for the repayment of a debt. If Myriad is doing 80MM annually, which I think they are, and according to the release, FAMH will only have to pay 500k a year to the IRS. What if the business even grows? This amortization is more than easily handled by the continuing ops and the profits of Myriad. EVEN SO, the debt repayment is figured in as part of the SGA is it not?, and doesn't that ameliorate the tax figures? If Myriad makes a pre-tax NET of 4MM, straight 40 percent would leave only 2.4MM in net. Take out the $500k servicing the debt, then you have, after taxes, 60 percent of 3.5MM, which comes out to 2.1MM. The difference being only 300K as opposed to the original debt service of 500k. Jin.