Ernie, Ftels' "wonderfulness" as you put it, is not based on the past ledger sheet. It is a highly speculative story stock, whose story continues to play out. Risk/reward, that's what the OTC-BB and micro-caps, are all about.
A year ago, if you had evaluated Franklin, based on the balance sheet, it looked like a company that had one foot in the grave, and the other on a bannana peel. Sales were lagging, shares were being diluted, and about all there was to hang onto, was hope.
Frank realized that the dependence on old product, and a lackluster reorder pattern, did not spell "growth". He had a vision, a plan, and
the dedication, experience, and knowledge to see it through.
When I invested in Franklin, I invested in Frank Peters. I shared in his vision and saw the potential of the internet and new opportunities in internet telephony, and telecommunications technology. I listened to his business plan, and assessed the feasibility of how he was going to implement it.
It was a major undertaking, with a sophisticated labyrinth of product development, intertwined with alliances, invention, financing, and a list of things not forseen. But, as daunting as all this sounded, I realized the potential of such an undertaking.
A year later, he has taken from the drawing board, and has literally made good on 90% of that vision. We have in place the infrastructure, the alliances, the product, the financing. Actually we have a bonus. Sales, new products, a growing backlog, new customers, cash flow, the management team, and a marketing plan.
That's why I am enthusiastic with our prospects!
All this was put into place with a "price tag" attached. That was his investment in the future. Considering the installed equipment, R&D, the "price tag" was small by comparison. They are concluding, at present, the audit. Altough I don't expect it to reflect black ink, I don't expect it to be that far off.
Investing in Micro-caps, is investing the future!
My projections are that we will turn a profit in the half of
1997 and quickly establish a fast rate of acceleration in both revenues and earnings. You also have the extra monetary leverage that
the IPO'ing of FNET will bring to the party.
In summary, it is pretty "Wonderful" that 90% of the arduous tasklist has been completed, and that a burgeoning industry awaits the products and services that Franklin has to offer. Of which starts today, with the National rollout of FNET.
You can wait for the books to reflect the "Wonderfulness" that I project, but then again, less risk/less reward. If security reflected in a strong balance sheet is what you are looking for, then it sounds more like a bond or income fund may be better suited to ones investment goals.
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