Bill, I'm coming from the point of view that if you still like Franklin without any leverage, then what's it worth with it?
That's my point and I'm glad you took the bait and asked the question.
All I'm saying is that if Franklin has value without FNET share leverage, then what's it worth otherwise? The $3 range isn't what I had in mind and whenever people figure that out, the price will rise.
So, with today's announcement of FNET finally getting underway with a real seasoned management team who have been around the block a few times, I think we are now on our way. The boys are back in NYC this week to tighten down the screws.
As for the 60% level, that is and always has been an arbitrary number.
It is based on an early IPO. Here is the scenario as I read it.
If we IPO early on (this year) then the shareholders of Franklin would retain a larger portion (closer to the 60% level) and probably have to accept a lower IPO offering price, say $4 to $7.
But if an equity partner came in, secured shares at say the $3 level, raised $50 to $60 million, which then funded FNET to get well entrenched in a global buildout of the network, producing revenues, then IPO at a much higher price, say $20.
Well you do the math. But it all comes down to this, either you retain a larger share of the company that is worth less, or you own less of a company that is worth considerably more. Pick one. Either way if it is sucessful, you will be rewarded either on the front end or the back end. Do I care which pocket you pay me out of?
RB |
