Here is a better outline of FTEL then I could ever do. Credit RB, he knows this company well. He is the "Phantom" and has his own newsletter.
The best to all, Ken
+T Roberts (3793 )
From: +raleigh baughman
Feb 2 1997 4:05PM EST
Reply #3798 of 3800
T Roberts, For heavens sake don't take my post as being critical, not at all. I thought
your post was very informative and laced with highly accurate facts. I also appreciate
your analytical ability to reason through this highly competitive sector.
All I was doing, was adding a point that most don't realize. Franklin not only enjoys
certain technological advantages, but is proving to be a price leader. That is why I think
USRX is buying their products, and they have been able to make such incredible
alliances.
Many here are newcomers to FTEL, and to reiterate a previous post that I made
months ago, I think it would be helpful to point out what I feel is a tremendous edge
that Franklin has over some of the big boys that you mentioned in your post, ie. US
Robotics, Ascend, Bay, Cisco, and others.
Franklin is small, thus is flexible, versatile, highly entrepreneurial, and extremely
opportunistic. Being a boutique, (almost custom manufacturer) and R&D company,
they do not get bogged down with bureaucratic BS like most big manufacturers.
Because they job out to third parties, a portion of their assembly and manufacturing,
they don't have to worry about changing total production lines and the costs ensued,
like the others. With a team of "Wizards in the back room" and Frank the Visionary at
the helm, they think it, they can do it, all in record time. Highly reactionary to changes.
One of Franklins true hidden assets is in its ability to not incur a heavy overhead,
coupled with state of the art technologies, and be able to reflect those savings in their
products. Pure and simple, they not only enjoy some technological advantages, but
also strive to be price leaders in their industry. For example, the D-Mark Channel
Bank selling for about 40% less than other comparable products. The Cyclone which
is about to be introduced in the next few weeks is reportedly going to set the industry
back on it's heels. This new product Code named the Tornado is reportedly beyond
reason in what it will bring price per port costs down to.
Frank has told me that their goal is to always stay about 1 yr ahead of the market, and
let the market come to them, albeit, the Hurricane155.
If you noticed, I clearly stated that a consolidation period is in order to make this climb
a healthy journey. I forewarned people that it is illogical to think that this can continue
at this pace. But without reservation, I have no problem continuing to issue a strong
buy recommendation for those that want to invest for the future and not just trade.
Realistic expectations of a $10 to $12 target within 2 qtrs. is certainly not hype.
Especially when you consider the explosive market sector, the small number of shares,
and niches that FTEL is carving, not only via uniqueness, but also via
price/performance relationships to the industry's leaders.
T, continue to post, especially about the overall sector and it's players. The best
investor is the informed investor, and the more they know about the industry, the more
it will become evident where Franklin's strengths and weaknesses are.
In conclusion, when one understands that nothing is certain in the fast world of
high-tech, one thing is, obsolescence. That is why Franklin is appealing to me, they
tend to lead the pack, not follow it, and we all know what scenery the last dog in the
dog sled team looks at. That may also account for the reason why he's usually named
Speckles.
Welcome aboard,
RB |
