Jack,
I don't mean to be mystic. Lots of stuff happening in a couple weeks. Probably the least straight forward, though it's not meant to be is the preferred stock conversion that takes place in the first and the middle parts of the next five months. The preferred stock that was sold back in October (I think) can be converted to common stock at the rate of 20% of their holdings per month. JNC Opportunity, Franklin's 2nd largest investor, has a $2M portion that is redeemable, again only $400k per month, in the middle of each month. All the others put together have $5.4M. Not only are these convertible investors getting 8% per year, but they can also convert at 85% of the average closing price of FTEL during the 20 days prior to their conversion. So, if the stock is low in February (so far the average is $4.5 but the conversion price is $3.83) then supposing with good news in the wings (like the ISPhone megadeal), at the shareholders meeting or in prospect of a swell CT Expo on March 5-8, the price rises to (:-o) $8 per share by the first week in March, they can buy 290k of stock and reap over 100% gains. My hunch is that if anyone had a reason to try to spike the price of Franklin, we haven't seen nothin' yet! And with the positive accumulation going on, even with a 13% drop, suggests someone may be doing just that.
geocities.com
WH |
