Doug, great post, but now look what you've done. You left the cat out of the bag. gggggg
BTW, a little something to go along with what you said. Most people do want to focus on the big customer, but in any business, the little guy is always the backbone and adds stability to your bottom line. There is an old axion, that 10% of the customers usually make up 80% of most business revenues. That is good, but that is also the achilles heal of most companies. They become to dependent on but a few, and then the big boy starts to dictate his own terms. Dealing with Walmart is a prime example. Many companies have gone out of business by landing the big fish. The question to always ask, is at what price did the business come.
To hear that FNET has hundreds of corporate accounts is very reassuring, and in fact, that news, put the cap on the day.
To put things into perspective, I used to have a manufacturers sales rep firm. Just my small company, did more dollar volume then most of the companies that I invest in. With Franklin landing back to back $400k orders with Revco, can you imagine what Raytheon could do? USRX
has been ordering D-marks at $12k a pop, so it's not hard to realize the rapid accumulation of revenues that could mount overnight. To say that Franklin could do $20 mill in 1997, is not far fetched or unrealistic. I used to be responsible for that much, by myself, and that was selling avgerage cost items that were under $20 wholesale.
The point is about the $ potential and how fast it could ramp up. If Franklin did do $20 million in 1997, and brought $4 mill to the bottom line, based on even 16 million shares, that's .25 EPS and this industry commands a 30 P/E so that would value FTEL at $7.50 per share. And that's not counting the built in valuation that is placed on FNET.
Now, I hope everyone can get a grasp as to why I feel this has 10 bagger written all over it. It's very attainable, especially when you take into consideration all the internet related information I have been posting recently. If Franklin just captures 1% of the market share in telecommunications/Intenet, that $20 mill can be made, many times over.
I really look forward to getting the audit released, and then start with a clean slate going forward. Of course we have to make three slashes for Revco, Raytheon, and USRX. Just those three could be worth in excess of three million dollars, not a bad start for a quarter, projected out that would be $12 mill annual, so you can see it wouldn't take to many more customers to hit that $20 mill target.
No hype, just a realistic forecast for 1997.
RB |
