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Technology Stocks : FRANKLIN TELECOM (FCM)

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To: J L Segal who wrote (184)4/6/1999 12:40:00 PM
From: David D.  Read Replies (3) of 2891
 
JL, I've owned FTEL for 4 years now. I've been to $.50 and $10.00, and everywhere in between. I'm still holding and accumulating. I believe in FTEL (Now FCM). However, the problem is that the company has burned a lot of people over the years with high expectations and mediocre delivery. The thing that is dogging the stock right now is two things, IMO.

1. Although we have numerous customers, only one seems to be delivering the revenues over the past few quarters. That's USAT. Once USAT is done with their orders (or the Federal Trade Commission steps in and halts them again or worse) what then? We need a few more LARGE regular orders from other companies.

2. Because of #1 above, there is uncertainty as to what is going to happen in the next and subsequent quarters. Revenues could tail off due to lack of future orders. Also, FNET has not dumpped significant revenues into the mix. That has been a bit disappointing as it was believed that FNET revenues would be substantial and so would FNET margins.

Until this changes, the stock will not explode to the upside. JMP (Just My Prediction)

Hope this helps.

David D.
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