TO ALL:
IMHO Franklin now has moved into the critical stage of its development. As of today, the company resembles nothing like the one it did just a year ago. Some of the "big guns" are back from their "haydays" and many new individuals are now onboard. To me, Franklin at the $3.00 closing price today is a much stronger company than it was two months ago when it was in the $5.50 area. Many at Franklin will also agree.
Speculation, while rampant on this board(including myself), is something that justifies our investment. Who in "GODS" name would invest in a company that had less than $600K in revenue in 1996 when the stock has been trading recently in the $2-$5 range. As far as financials go, their are thousands of cos. out their that represent better investment opportunities than Franklin. But this company IMHO is special and deserves a good look, and a little patience by everyone. Things to consider:
First, what most of us fail to realize is that this is a small company. I can tell you this firsthand. When I first visited Franklin, I had this image of a glamorous high-tech company that was perched on top of a hill in an affluent area of L.A. While the latter may be true, the first part is much more realistic. They are located w/in an industrial park with numerous other "low-tech" businesses surrounding them. Nothing glamerous about it.
Then their is the corporate offices themselves, or should I say corporate, manufacturing, customer service, engineering, accounting, and human resource departments. All together. Yes all toghether, except the new manufacturing & engineering departments.
BUT, you have to start somewhere. While living in the Silicon Valley for 21 years, I saw numerous companies start-up(or grow-up) in much smaller places than Franklin's current facilities. Red Brick software on the NASDAQ looked like and still does appear to be a hole in the wall operation. Its stock has traded in the thirties in the last year!! Less resources and IMHO less potential. Just a few people that believed.
Franklin is similiar in SOME ways. Their employees believe in the comapany and appear ready for any upcoming obstacles that stand in their way. Like I stated a couple of months ago, the talent is there, and when they finally meld together with their ideas and egos, watch out.
This is why I and many other on this board "put-up" or understand some of the problems that we and others have experienced with for expamle Franklin Internet. They are learning along with us, and sometimes over-extend themselves. Problems are to be expected, but what they learn from them and how they correct them is important to me.
On the flip side, many have voiced their disapproval with customer service, and like anything else, 100% customer satisfaction is unattainable. I am for the most part very happy with my service, and can't wait till the day that Franklin can put the resources it needs to make everybody(almost everybody) happy too.
***Franklin at this time is hiring employees for FNET for the first time in awhile. I hope this will help allevaite some of the problems!!
BTW, as somebody on this thread mentioend before, the are numerous other companies today on the NASDAQ that trade many multiples higher than Franklin with revenues that I expect Franklin to achieve in the first quarter ending JUNE 30th.
Second, and IMHO most importantly, is the internal growth that this company is experiencing. You don't just go from 7-8 employees to around 65-75 employees unless:
1) Business is exploding.
2) Business is about to explode.
I guess it is a combination of both. Neil Wyenns and Tom Ruseull are back from high paying jobs, with good companies, and for what reason???? POTENTIAL. GROWTH. OPPORTUNITY. IP and Sparrow, who had very legitimate contacts and projects going with some impressive companies, are also aboard. Why?? You answer that. I heard that the Digital Express deal was finalized only after Franklin's involvement. What does Franklin have??? Time will tell.
Finally, I believe that as Franklin's cash flow increases, so will its resources. The "burn rate" is no longer an issue IMHO and Frank has the money to go out and find the talent he needs to grow and expand. This is crucial to their survival. The CYCLONE will move us forward, but new products and services will take us to the level we want. Lets hope Frank can control the overhead and use his resources wisely.
Along the same lines, as the stock price increases, so will Franklin's purchasing power. Franklin IMHO will be acquiring new companies in the near future and the stock price goes along way in minimizing shareholder dilution while increasing the companies potential and bottom line. The latter again, with an increased share price, will/could help Franklin grow at the rate that many on this board have specualted.
CONS OF FRANKLIN:
****Malibu Internet Service
****AOL Press Release
****800# service concept(although I glad they got rid of it)
****Sparrow's Boyfriend
****Lack of Movement after DXPRESS release
In closing, I see Franklin growing at rates close to the gray hair on Frank's head. If only we can keep him their till the year 2000 we will all be fine. Next generation products, along with the voice server and TORNADO(Opps, not supposed to talk about that one) will keep us moving in the right direction for some time unlike anytime in Franklin's past. FNET on the otherhand might be the icing on the cake now, but in the near future it might also be the filling in the middle and the candles on top. Teens by August!!!!!
DH
DH
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