To: waltertx who wrote (27186 ) 3/26/1999 2:15:00 PM From: R. Murphey Respond to
waltertx, Glad to see you opening up a little. A few thoughts on your post, remembering it's only one humble opinion on the situation.our group as a whole has decided to exercise theire preogative to cumulate our votes at the shareholders meeting. "If anyone had a doubt, I guess that ends it. 2. We believe that Mr Lee. you are out to destroy the company and hence our investment. What make you think that any client would work with a company that has been forced in to receivership. There are more than 300 PEOs in california the clients could move instantly. "It certainly appears the company has been doing the "destroy" thing just fine, ALL by itself, and wiped out the investments of potentially thousands of shareholders. Glad to hear you were not one of those suckers. Yep, Firamada issued tens of millions of shares valued at let's speculate, $20 million, so, where is all that shareholder equity today (I'll re-address this in #4 below.) All that money ....GONE? At the end of 1997 there was an accumulated shareholder equity deficit of $1.3 million, .....almost equal to the 1997 GROSS revenues and current liabilities seven(7) times greater than current assets. That's, (I seem to recall in ACCT:101) "insolvent". As far as clients moving easily, there is already evidence of that. Check out the reduction in gross revenues between 1996 and 1997, and then ask what happened to the $30-33 million of additional(beyond Myriad's May'98 "55 million") business that was just awaiting the final inking of the Myriad acquisition. This all occurred while Mr. Lee and others were cheering the greatness of Firamada and company management. Something caused them to change their minds. This shows that none of you have any knowledge of the PEO or the staffing business. " What we do know, is that a company HAS to have profits to survive long term, that is IF it really is a business. This means, and I'm sure as a CPA you'll agree, that sales have to have net profit margins AFTER ALL costs of goods, overhead, taxes, etc. are paid. That is, at the end of the year, there's something left in the till other than borrowed money and a fist full of IOU's. I am a CPA and have my own small staffing company in Houston. I know what I am talking about and do not need approval from any one. "As a CPA, you're already aware of what's painfully wrong with Firamada's financial and legal picture, including the ominous issue of failing to pay employee withholding taxes, while borrowing from them to use in operations or otherwise. So, waltertx where has all that money gone?? Additionally, I fully understand, or maybe I'm trying to comprehend, why you, as a competitor to Firamada, are busy financing their business. Send them checks, that's what they need, or at least some of your super high profit margin accounts. But you're right????????? Mr. You are looking for consulting work and you are using the shareholders monies to try and force firamda to hire you as such. "Firamada has hired lots of consultants, just look at what has been paid in "professional" fees, look at the herd of PR firms, look at Mr. Monas. Firamada appears to have focused solely on consulting expertise to pump the stock price. Lot's of money was spent on achieving stock price via stock promotion when good, solid business practices would have accomplished much, much more. Any consultants worthy of existence would have recommended critical major changes in the way business is done. Since that has not occurred internally, it is up to shareholders , in the interest of protecting their investments, to effect change in any way available, such as the system of checks and balances available to oppressed minority shareholders.
