M Allen,
So, you're saying, if there was an IPO today, the price would go to $0?
If you have the right to purchase one share of FTEL at $1.35, it's worth $1.27.5 at this point (why would anybody just give them away?), and FTEL makes 30% of everything over $4. It's brilliant! What would make the price go down? Based on conservative estimates, we're doing $20 - 40 million revenue on an annual basis anyway. With 16 million outstanding shares (warrants included), the stock should be going for $10 - 20 if it were being IPO'ed now. The reason I compare the S-1 registration to an IPO is because for one thing, you can learn about the company without having to call or visit and secondly the company personality has changed completely in the last six months - suddenly we're a manufacturing not an r & d company. We won't know exactly what's going on until after the S-1 acceptance (or rejection if there is such a thing). The S-1 is nothing, what's going on is everything. "The plan is nothing, planning is everything." - D D Eisenhower.
There aren't many shares outstanding for the stuff we're involved in. It looks like FTEL's dreams are much bigger than its pockets, so maybe that's why you see the warrants as a virtual flood on the market But why not? FTEL is doing the right stuff, continually making progress on all fronts and continually looking at new dimensions in telecommunications. The S-1 quiet period breeds uncertainty, the worst enemy of the market. I think MMs look forward to the end of that like everyone else. At some point you got to ask yourself, 'what if everything they tell us is true?' I see $100M/year and FTEL in the $30's. Why don't you do something productive and tell us why you think they're lying? Stop wasting my time.
WH
|
