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Technology Stocks : FRANKLIN TELECOM (FCM)

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To: lostmymoney who wrote (188)4/6/1999 4:53:00 PM
From: george willse  Read Replies (2) of 2891
 
Mike and All -

Key indicators tell you globally how a company is doing. One is increased revenues over previous quarters - FCM revenues are increasing significantly. The other key indicator we see today is bookings. Sales last quarter were $4.1M. Bookings (product sold but revenues not counted in the current report) are already at over $2M. This is an excellent trend for any company. If you have been with FTEL/FCM over the past few years you know how exiting this news is.

What we don't know from the PR is the product mix that is selling, the customer base, and what net revenues are. These are other indicators that also define the strength of the company.

Also, we shareholders shouldn't be too concerned about the stock options announcement either. This is a typical method for compensating employees. In addition, it is usually counted as part of the salary package. It is not unusual that an executive's income from stock options is actually greater than their base salary figure. What is good about stock options is that they are tied directly to the stock price, which is directly related to the performance of the people within the company.

IMHO, based on this PR, etc, I would think there are some fund managers out there that have to be looking pretty closely at FCM right now.

In addition, I believe that the $2.50~$5.00 level is where we will reside most of the time until a medium to large scale alliance/customer is announced (say SW BELL to buy FCM equipment to provide DSL to all of their customer base).

My major dissappointment with the NR lies in that little mention of FNET (revenues, growth) was made.

Patience :-)

George
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