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

To: R. Murphey who wrote (23970)	9/17/1998 10:52:00 PM
From: ElGator	Read Replies (2) \| Respond to of 27968

RM: When I was in audit, I ran and participated in jobs that ran on, and on, and on, and on... There are a lot of variables that can impact that, and the company has not shared any of the relevant details with us; nor are they required to do so. We do know that this company has been plagued with numerous organizational problems and those things can take time to address and resolve to the satisfaction of the audit firm. That said, I don't understand how the non-receipt of one confirmation can delay the opinion this long. There are usually other ways of vouching the data if the confirmation cannot be obtained. This assumes that it is a simple account balance needing confirmation and not something more complicated. They have not said they need waiver of credit facility covenants or anything in that catagory. In any event, I still wouldn't be too concerned about the 1996 data. It's really too stale and the company has changed too much for it to be of much significance. 1997 data, while also somewhat stale at this point, is important as many of us based our investment decisions on the company's representations of profitability for that period. If these turn out to have been false, then they will have a problem. I would imagine that, given all the prior problems, they are being very careful about the accuracy of what they release and are issuing nothing without legal advice; which explains why they have been so quiet of late. That's my own impression, but I know how I would handle this mess. We'll just have to wait and see what comes out of this. I still believe that we will see a profitable 1997 and YTD 1998; simply because I can't imagine how the new "professional" guys could have been so foolish as to have issued false and misleading information to the public, particularly in light of what had already transpired. If it turns out we've been conned, well, that's life. The principals of the company will be held accountable for their actions and they would have been aware of that before they said anything. For that reason, I really don't think that will turn out to be the case and I'm waiting to average down big-time at 1/16th.