FTEL gapped up well already today. We should be in for a long ride. Read this:
To: joseph pakin (2806 )
From: raleigh baughman
Jan 27 1997 8:19AM EST
Reply #2814 of 2838
Joe, you mentioned Fridays action, and asked if there was any significant selling on the
way up.
I follow the tape, tick by tick, and in looking at it closely, there seems to be steady
selling all the way up, even in the days leading into Friday. Most it occured in the 2.40
- 2.50 level, and again in the 2.90 to 3.00 level. This is natural and follows a typical
pattern brought on by pyschological price points at the 1/2 and even dollar levels.
What makes it difficult to determine the actual selling pressure, is that the MM's had a
short position going into this robust move, so some the sell side action is actually the
MM's buying (covering their short position ) on the bid side.
Due to the unprecedented buying pressure that is being exerted on FTEL , due to yet
pending news, I would anticipate a further run up. If my charting is accurate, coupled
with the news that is assumed to be in the pipeline, I would expect FTEL to run over
$4 then have a minor re-tracement back to the $3.50 to 3.62 level, then make another
run on news, up to and over the $5.00 level leading into the 2nd qtr report due by mid
Feb.
Let's look at some of the news that we can assume is in the pipeline:
1. Acquisitions, based on Presidents message, whereby Frank states,"Look for
acquisitions over the next few weeks:.
2. The official debut of "Cyclone"
3. Detailed numbers for 1st qtr. report.
4. Possible news release pertaining to the Atlanta trip.
5. News release regarding the "Hybrid Cyclone"
6. Voice server update.
7. 2nd qtr report ( should show major increase in revenues and reflect the return to
profitability )
8. Filing of Form 10, and registration. This should open up a series of events to take
place that would allow the return to fully reporting status, an influx of $1.8 million (est.)
off exercised warrants, and pave the way for FNET to be IPO'd.
9. FTEL is getting very close to being able to apply for full NASDAQ listing, now that
the $3.00 level has been obtained. With the influx of $1.8 million, this should get FTEL
very close to the $4 mill needed in assets. It would not surprise me to see Frank initate
the paper work in advance of this event.
Not a bad lineup, and should keep continued buy side pressure applied.
Any one of these could be the catalyst to punch Franklin through the $5.00 level. I said
earlier that by Valentines Day we would clear $3 to $5.00, looks like the first part has
been acheived.
Look for gap-up this morning and fast run over the $3.50 mark.
RB |
