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: Mark[ox5] who wrote (12699)	4/17/1998 10:39:00 PM
From: Dixie7777	Read Replies (2) \| Respond to of 27968

I am long in FAMH. With that said let's get something squared away. You all seem to think "we" now have a $75,000,000 company. NOT!! What seems to be lacking is the fundamental understanding of just what the "employee staffing/leasing" business does. We, FAMH, agrees to pay the 941 (federal withholding tax form,) and all attendant federal and state taxes/fees for a corporation. Additionally, "we" actually pay the TOTAL net pay to each "leased" individual. We do this for a miniscule percentage of the total payroll. This payment "we" make to these state and federal agencies is then billed to the attendant client corporations so that they may expense this charge and not have to deal with all the federal and state bs paperwork. The client corporations may actually cease to be the "legal" employer, and remove them from the chain of liability that exists in our culture today. (Goddamn lawyers!) Pay attention now, real important term coming up. It's called "pass thru" payments. Basically means we (FAMH,) might invoice $75,000,000 to our client corporations, but then turn around and pay $74,786,000 in the form of paychecks to the client corporation employees, federal (FICA) & state income taxes, medicare insurance percentage, unemployment insurance premiums to the state, state disability insurance, and state workmans comp insurance premiums. $75,000,000 in revenues to a staffing, employee leasing company is NOTHING like having a company that invoices, or has revenues of $75,000,000. It's a fraction of that. A tiny fraction. Now, please understand it's not my intention to burst any balloons around here. I believe that FAMH has potential, especially since it is in a sunrise market niche. However, FAMH needs substantially more "revenues" because of the pass-thru nature of monies recieved to be a really, really, really big company. I don't even mind some of the hype here on the board, but want to see everyone having a better understanding of just what we got. Now, with regards to the Myriad deal. If you will notice, this compay was essentially bankrupt. It has a 941 IRS lien assessed to it for an undisclosed amount. Gonna cost FAMH almost 4 mill over the next few years. This means that Myriad was bleeding uncontrolably and using the "pass-thru" money for operational expenses. Probably a few inches short of being assessed personally to the appropriate individual within Myriad that was responsible. You see, the IRS does that with payroll taxes. Taking over Myriad was probably not much of a challenge. They were probably about to lose it all when Ira rode in on the proverbial "white horse." To be sure this is a rapidly acquired customer base, for about 1 mill up-front and a few mill more over the ensuing years paid to the IRS. However, the question to be asked is, will FAMH have to raise the fees, and will all the customers stay? Or will they jump ship to the competition? Will Ira be able to keep the fees the same by lowering the overhead? I'm hopeful the we will be able to keep at least half the customer base while improving efficiency and all the time growing through other acquisitions. At any rate, I hope you all now have a better understanding of "revenue" when used in conjunction with the employee staffing/leasing business. Good luck to us all, and with eyes wide open, Rich