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Microcap & Penny Stocks : FRANKLIN TELECOM (FTEL)
FTEL 0.668-8.7%1:39 PM EST

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To: STK1 who wrote (32369)4/20/1998 5:29:00 PM
From: Martin P. Smith  Read Replies (2) of 41046
 
OK simple question simple answer.

Following assumptions are made.

FTEL gets NO share price benefit from ownership of FNET (bearish )
50% margin ( bearish since our worst margin is stated as 62% )
PE 50 (bearish for VOIP company check the others)
22 million shares ( worst case bearish again )
$7 per share ( the higher of your two prices guess what bearish )
15K per DVG ( bearish price is actually 20K )

22 million shares * 7 per share = 154 million

a PE of 50 means earnings would be

154 / 50 = $3 million

given a margin of 50% means sales would be

3 * 1/0.5 = $6 million

so given 15K per DVG

that is 6,000,000 / 15,000 = 400 DVGs.

================

So how many DVGs does FNET require well approx 180 by Jun 30th .
then approx another 200 each month to satisfy the stated rate of 20 cities per month.

Hmm I can see 400 DVGs quite quickly.

Martin Smith
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