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

To: Chris B. who wrote (24872)	10/16/1998 6:24:00 PM
From: tonto	Respond to of 27968

The release is well written, and if one is not careful, one will forget to ask the hard questions. posted to me earlier: Tonto....There's more. The press release from July 6, 1998 states: "Mr Malinoff concluded, With our desire to be a front running PEO, and our attention on the rapidly expanding IT and employee leasing markets, Firamada can REALISTICALLY expect to generate annual revenues in the 200 Million to 300 Million range within 2-3 years." Well IT has been totally disbanded. So much for that prediction. Also, in the same release: Firamada also issued a statement from the recently appointed Vice President and Chief Financial Officer, Michael Sukey. Addressing the Company's financial status , Mr. Sukey said, "FIRAMADA HAS BEEN PROFITABLE AND CONTINUES TO BE SO. WE ARE BUILDING ON THAT PROFITABILITY, in part, by eliminating unnecessary costs and expenses." This statement was made on JULY 6, 1998. Randy was president then. How can they release that statement then?? Randy didn't know last week if they were profitable or not? Did they take Sukey's word for it? If that's their explanation, that's bullshit. As President, Randy was responsible for Sukey's statement and should have verified it, if that's the case. Again, what the f#$%!! Now that just one example of Randy's statements is fresh, reread the latest press release keeping in mind that with Myriad he now says they will do around $54,000,000 this year, but within 2-3 years look how big they are going to be! <s> Remember the post where he said they were going to do $100,000,000? Now he says they will do $50,000,000 less. That is a considerable sum to be off. He has no record of accuracy. Firamada Inc. Posts Audited Financials for1997 October 16, 1998 05:01 PM LONG BEACH, Calif.--(BUSINESS WIRE)--Oct. 16, 1998--Firamada Inc. FAMH Friday posted complete audited financials for 1997 on the company's Internet Web site: www.firamadainc.com. The certified audit was delivered to Firamada by Steve Corso from the independent auditing firm Merdinger, Fruchter, Rosen & Corso, P.C. Firamada President and Chief Operating Officer Randy Malinoff spoke on the audit results and the company's future: "The 1996 and 1997 financials give us a starting point for establishing credibility and accountability. We can now move forward with our plans to eventually become fully reporting and, more importantly, profitable. "The Myriad acquisition was an important addition to the company and has consequently opened the door to many other opportunities. We will, however, take a one-time charge-off in 1998 for the cost of acquiring Myriad, but our goal is to be near break-even for this year with very realistic expectations for a profitable 1999. "While I am deeply disappointed with the loss of 7 cents per share for 1997,(quite different from their other audited earnings of .1085) it should be noted that the current status of this business today is substantially different than in either of the previous two years.( How is that? They had no money but they do have payroll tax obligations, and bought another company without money that also has payroll tax obligations?) Since my arrival in May of this year, I have placed a premium on efficiency, increased sales and long-term client commitments. We are now beginning to see the positive results of this transition. "Additionally, although the total outstanding shares today are almost four times the number outstanding in 1997, our gross revenues for 1998 will be almost 40 times more than in 1997.( This has absolutely nothing to do with shares. Profit per share is another thing. Why sugarcoat this? That is wrong. Who benefits from the additional shares? ARIF)shares I can assure our shareholders that every member of my staff is focused on responding to the challenges and opportunities at hand. "The company has asked its new legal counsel to review prior share issuance and to take appropriate action to cancel any shares held by current shareholders which were not issued for valid consideration." Malinoff concluded by saying: "The total number of outstanding shares has not increased by even one share since I came on board. And, although I was not here in 1997, as president of this company I have a deep concern for the expectations each shareholder had for 1997. "My job now is to reclaim the faith of our shareholders. Firamada is in a growing industry that is breaking records each year. I intend to see Firamada become a successful player in this market. Be careful "Finally, while these financials do not paint a pretty picture, I will always be forthright with the shareholders and will not sugarcoat the facts. I would like to ask our current shareholders to keep the faith and bear with us as I genuinely believe we have a diamond in the rough in Firamada."