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

To: Forest Gump who wrote (10692)	4/5/1998 8:13:00 PM
From: Mark[ox5]	Respond to of 27968

HYPOTHESIS: $10/hr pay rate for Myriad Workers 40 hrs a week 50 out of 52 weeks a year CALCULATION $10/hr * 40 hrs 50 weeks =$20,000/ year $20,000/yr 6500 workers = $130,000,000 $130,000,000 * 4% gross margin = $5,200,000 Wow your right.. approx $5M a year in GROSS a year.. not too shabby.. even after overhead should be in the $3-4M a year NET. Lets say $4M a year... that is $1M a quarter According to Press release on 3/23 post Merger with ATXI we will have 11,973,195 shares. I will say whatever, and say somewhere else they will find 2M shares... so lets go for 14M shares. SO: $1M per Quarter Net/14M shares = .07 EPS per QUARTER .07 * 4 = .28 EPS per YEAR What am I missing? This is too good to be true. Got FAMH? Mark

To: Forest Gump who wrote (10692)	4/5/1998 8:16:00 PM
From: Warthog	Respond to of 27968

When the Myriad acquistion was first announced, it was stated that Famh was buying the company for 2.5 Million + stock for a company that made 4.5 million. Your figures are not too far off I would imagine. In the CC I think the price paid was 4 million...mainly to the IRS. collin

To: Forest Gump who wrote (10692)	4/5/1998 8:21:00 PM
From: JIN CHUN	Read Replies (3) \| Respond to of 27968

Forest, it sounds about right. From the information that has been given,(I might be confused on this) Myriad booked 45MM in sales 1997. On that, the net profit was 1.8MM I believe. If they went from 5000 employees leased to 6500, that's a 30 percent increase which puts them at an annual rate of 60MM in sales, and assuming the same margin about 2.34MM in profits for 1998. Since they will only affect FAMH for the last 3 q's of 1998, averaged out, they should contribute, with no growth, a conservative 1.75MM to FAMH after the acquisition is complete next week. With 12MM shares post merger, that's about 14-15 cents eps alone. From what others have contributed, Myriad leases out employees on the lower end of the pay spectrum by reducing the payroll and administrative costs to small businesses. If you add in the workman's comp division of FAMH, which should bring around 2 to 3MM in profits, conservatively the two would add around 4 to 5MM in profits, or anywhere from .33 to .42 eps post merger alone, that also assumes no growth. Add in the financing division with no growth, that's about 1.4MM which contributes around .12 eps post merger. Add in FAMH's core business in 1997, with the IT division, that should conservatively add another 2 to 3MM in profits. Add all of those together, you get a conservative .75 eps post merger, which assumes little or no growth. Tack on a conservative PE of 20, that's a share price valuation of $15 post merger, or $3.75 now before the share exchange. Tack on the Industry average PE of 48.4, that's a share price valuation of $36.3 post merger, or $9 now. Just my opinion. Jin.