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

To: Warthog who wrote (10615)	4/5/1998 12:42:00 PM
From: CO	Read Replies (1) \| Respond to of 27968

Collin, Book value is just part of the total value of a stock. Earning Potential is another big part. The ATXI price right now reflects mainly just their book value because that is about all they have. FAMH has great earning potential and is currently more profitable than ATXI. After the merger, ATXI-FAMH would then have great earning potential. I don't think the price of ATXI will change much until the merger is completed because of the risk ATXI has. If the merger does not happen, ATXI would still only be worth the book value at best because they have no earnings. I see ATXI as a much higher risk right now with very little potential without FAMH. I think the ATXI price would collapse if the merger does not go through. FAMH is the company that adds value to the deal. FAMH has earnings and their future earnings are very promising, especially with Myriad. I think the price of FAMH will continue to increase right up to the closing of the merger and will continue after the merger. FAMH is growing. ATXI is stuck waiting on whether or not it merges with FAMH. Moving to NASDAQ will allow FAMH to start trading closer to what it is really worth. Which is my opinion is MUCH higher than it is currently trading. I think we can easily see FAMH trading at a 25 to 35 multiple. After the merger that would be .36 EPS times 25 to 35. 25 x .36 = 9.00 35 x .36 = 12.60 If you paid .65 each for 4 shares of FAMH pre-merger your cost would be $2.60 per share in the new NASDAQ FAMH. I am not saying that FAMH will go to $9.00+ overnight after the merger. But I do think it could do that fairly quickly. Granted this is just my opinion. Cheryl