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

To: Sigmund who wrote (14257)	4/29/1998 12:40:00 AM
From: Brad	Read Replies (5) \| Respond to of 27968

Sigmund, What I understand from Ira is that when he first looked at Myriad's books, he saw very quickly that they were paying too much for many things. He figures he can cut costs substantially just in selecting better suppliers for some of the items I mentioned previously. Those items represent significant amounts in this type of business. It can easily be the difference between profit and loss. Workman's Comp Insurance is one good example: With workman's comp insurance and employee benefits programs, staffing companies make money on the spread by bulk buying. So FAMH has developed an "Offshore captive" that allows them to get workman's comp insurance costs at $1.65 per $100 payroll regardless of the job. It's re-insured. Many companies pay $4 to $7 or more per $100 of payroll covered. Not only can FAMH save money within their own operation (including Myriad), but they can also re-sell this coverage to other companies at $4 to $7 or more and make great profits. Many major staffing companies have problems with workman's comp coverage. FAMH already has over $100 million in workman's comp billings to put thru their offshore captive and make $2-3 per $100. Very little expense. Very profitable. It's also one way they can save a lot of money in Myriad. And it only requires a simple change in how Workman's Comp Insurance is handled. Sounds simple, but that's how I understand it works. Best wishes, Brad