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Microcap & Penny Stocks : FRANKLIN TELECOM (FTEL)
FTEL 3.160+4.5%12:20 PM EST

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To: larscot who wrote (11814)6/6/1997 12:05:00 AM
From: vic klimpl   of 41046
 
Larry,
Very good post.
So lets see where we are and where we were.
feb-mar. stock price 4.5-5.5
dmark channel bank commercially available
cyclone in dev.
fnet launched as another isp
employment 15-20
facilities just moved in as of my mar.15 visit

june stock price under 3 (to wrenching to post actual for some folks)
dmark channel banks still selling
cyclone developed and being tested by large customers
(MY ESTIMATE-fully commercical and costomer acceptance days to a week or 2 away)
product y- Where cyclone was in april
product z- In early development with summer to early fall intro(MY ESTIMATE)
Fnet- REINVENTED as private label concept to afford immediate revenue with large ramp up lasting to year end with announced signup of 61000 pops with a CONSERVATIVE target of greater than 150000 pops by yearend.
Digital Express on track with a possible announcement after s1.
Pro Purchase announced.
Peak Tech. products to enhance services.
Major announcement concerning four huge corps.(I have no idea what this one is all about and is a Frank Special surprise)
emploment-more than 40 (and some very interesting heavy hitters in sales finance and software.)
New facility -fully operational

Some comments.
Product y and z are the logical developmental plan frank outlined months ago and is going at a faster pace than projected when the stock was 5.I am 99% sure what the final outcome is but will not speculate as I will let the news announcements do the talking. Suffice it to say I will be very pleased in the upcoming time period.

Summation- The company is well ahead of my expectations in its product and services rollout and has many finalized and close to finalization contracts that will be annouced once the s1 is accepted and I am pleased with the corporate progress.

I usually dont like to talk about stock action but let me give you my scenario for folks who are lurkers and are not committed as I am.

My expectations-300-500% appreciation beforef net ipo and if the development gods are with us. After IPO at say 8 another added 100-200% on ftel due to its ownership in fnet.

Stock Performance-
Wait to buy at 2.375-2.75 range to pick off bottom for traders(I have stated before that i am not good at trading and am long term oriented).
Danger in this strategy-If s1 is finished in next few days and overnighted to sec ,sec fully reporting status could be granted in a few days or weeks without warning. Helen has announcements that can be released to wires within a short time after that.rb has stated that some of these initiatives could have substantial impact on the stock and within minutes could move it from the mid to high 2 range to 3.5-4 and quite easily on low volume since its so tight now.You are waiting to pounce but you had to take your cat to the vet for 2 hours or you work for a living and are in a meeting for 2hours ya de ya de ya. whatever. Are you going to establish a position at 4.1875 or so. Probably not.you will wait for a pullback,afterall it always happens to these kind of stocks.HHmm, another annoucement hits and your plans are foiled. I am saying from my standpoint it doesnt matter where you buy the stock in the long run. If I am right on the company you stand to make a huge return if you buy at tomorrows opening or a quater higher or lower. If I am wrong on the company and you buy it at 2.25 and think you have bought a bargain it wont matter either.So waiting to me is an exercise that has bad odds from a longer term prospective and the risk is being out of the stock not in some limited downside immediate stock price.According to frank the silver lining in his forced golden silence is that the folks have been allowed to make significant progress because they have not been distracted by market stuff and they are really focsued..
By the way, if a significant event occurs that does not change the corporate structure(which would cause further s1 delay in refilling)they could make that public at any time. So there is another risk factor.
Hope this has been useful and please understand I am a self admitted believer in the company and again if you feel I make sense ok,. If you think this is not a rational look at the company thats ok to.I owe this to the folks who have been charter members or wish to join the dirty dozen.
I will be off the board until next tuesday after my visit to Franklin and hope to have harder news to report. I will not have internet access until next week. See you then. Keep the faith and optomistic as always.
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