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

To: dave brown who wrote (25899)	12/4/1998 8:02:00 PM
From: R. Murphey	Respond to of 27968

Dave: Re: <<...any hands on knowledge that this company is not a total scam...>> A partial, convoluted answer...... and but a single, humble opinion on the evidence. Posters have reportedly called the various offices and conversed with a warm body. (...of course, calls can be forwarded). One poster reported to have visited the Phoenix offices, approx. a year ago. Since there is some revenue, by definition, it isn't a "total" scam. On the other hand...... This business is essentially a "cost plus" arrangement, i.e. there is the cost of the goods, plus overhead, plus a profit margin tacked on. Granted, it is probably a low margin, otherwise, employers would find it cheaper to provide staffing themselves. It does not take huge sums to set up a simple office for interviewing, processing, and servicing. Nevertheless, FAMH has had some sales revenue, several millions, although the audited figures paled in comparison to the company's boisterous claims of revenues, and numbers of placements. There should have been a profit margin, but there wasn't, and well over $1 million in taxes/fees/penalties appeared to be unpaid (delinquent) at the end of 1997. Stock has been issued to the tune of over 75,000,000 shares during a time when the share price fluctuated between 0.20 and 0.70. Making a big assumption that the average issued price was 0.32, the company should have raised $24 million +/-. They had a couple of small acquisitions, totaling maybe $6-8 million that consumed a little, but now say they need financing for "general operations" (and acquisitions). There has been no evidence of positive cash flow. There have been indications they may have been "factoring" receivables, in the past. There do not appear to be and significant assets. This appears to be an owner/family run & controlled business with no regard for public shareholders. It has churned the position of President several times. "Divisions and new offices that were highly touted, have disappeared, and business segments the company said they were in later were revealed by the company as not being true. A lot of money, relatively speaking, has been going somewhere, be it gross mismanagement, malfeasance, or fraud. A group of current and former shareholders who have followed this company closely have strong opinions on which is most fitting. If there are significant errors in my assessment, I hope someone will help with the corrections Make your own assessment.