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Microcap & Penny Stocks : FRANKLIN TELECOM (FTEL) -- Ignore unavailable to you. Want to Upgrade?

To: Albert Martin who wrote (20925)	11/9/1997 9:50:00 PM
From: Secret_Agent_Man	Read Replies (1) \| Respond to of 41046

sorry, error

To: Albert Martin who wrote (20925)	11/9/1997 10:29:00 PM
From: topwright	Read Replies (2) \| Respond to of 41046

Albert, remember one thing, charts and T/A are only tools, it is fundamentals and events that drive a stock. On Friday the S-1a was the first real indicator that the big boys stepped up to the plate investing $5.4 mill. That $5.4 mill represents a minimum of between $4 and $5 dollars per share. Usually that is indicative of fair price valuation in their eyes of prices 15% higher making FTEL a $4.60 to $5.75 pricing range until further news is forthcoming. The $3.50 that David is referring to is the last support area. But the 50 day moving avg has now extended past that support area making the first level of support at $4.00. Also using the mid July low of $2 and extending a line off past the $3.50 support level we would extend out exactly to where we are now. So there are arguments to be made. Like I stated in an earlier post, T/A needs supporting criteria from many other factors to hold water and right now we have to many conflicting indicators to lend credence, especially in this type of market. Right now the general market is without direction, therefore making any type of T/A and ensuing trading strategy nothing more then a roll of the dice. This is not a traders market, period. If you want to get burned try to out guess this market and you will soon need some ointment and gauze, not just with Franklin but with any stock. This is a market where caution your guide, value is the objective target, and preservation of cash is top priority. Not the type of atmosphere that is condusive to a novice's schooling, unless the school of hard knocks is where you seek your diploma. Don't want to sound like I'm preaching, but there are better times to apply T/A, and those times are when a definite trend is in place, and now ain't the time. Capiche? rb

To: Albert Martin who wrote (20925)	11/10/1997 1:56:00 AM
From: David McCleary	Read Replies (1) \| Respond to of 41046

Albert, concerning your question how I did my TA, no two people will do it exactly the same. It's sort of like cooking, some will add a little more pepper and some a little more salt. The fact that your friend who I'm sure has more experience than I arrived at the same conclusion says something about the reliability of using TA as ONE of several indicators. Raleigh is correct in saying TA is not always the BEST indicater, however I respectfully disagree with him on some key elements of his TA. I'll try to keep this tutorial for you as simple as possible, it's easy even for me to find myself over my head with this stuff! The most simplistic element of the TA is extending a line through what appears to be levels of support or resistance. If you're looking for a base support, draw a line where there appears to be a linear series of LOWS and extend it into the future. If the price ever drops below this line, in theory, the price will drop a significant amount before rebounding from a LONGER term line of resistance. For example, in arriving at $3.50, FTEL in the first of November broke below a line of resistence which began to form the early part of September, this predictably lead to the drop from $7 to $5, I then turned to a longer term support line to make my $3.50 opinion of the next support base. Stocks will ALMOST always touch a support base at least once when comming down from a high. If the price rises above a linear line made from previous HIGHS, the stock is destined, in theory, much higher. At this point I see that short term level at $6, I'd be a buyer at $6.01. Where I disagree with Raleigh is where we begin our lower level support line, he is saying to start it in mid July, I find the start of September a more reliable point. Give it a try, you'll see that as soon as it broke below this line is when we began our desent from the $7 range. Try it on other stocks too using historical charts, it's amazing how often you could have predicted sharp rises or falls. Another simplistic area you can look at is the 50 day moving average, where Raleigh and I also disagree. He stated that the 50 day average is above $3.50, therefore we cannot use $3.50 as a base. Good point, however I find more significant the fact that last thursday we broke below the 50 day moving average which is a bearish sign in many people's opinion. A third element I used is looking at general patterns forming in the price action. In my opinion we have recently begun to form the final element in a "head and shoulders" pattern which is often viewed as a very bearish sign. This is more subjective than the previous methods, and some may disagree. In this pattern a stock first forms a high, then a base there or possibly a small retreat, then a new high higher than the previous high, a retreat again followed by a rise lower than the previous mega high, followed by a retreat. Basically, it looks like a head and shoulders picture of a guy, except that the shoulders may not necessarily be equal height, but always below the head. whew! I bet you're sorry you asked me now about how I did my TA after reading this novel. There are many other indicies to look at, these were just the easy ones. As Raleigh said though, it does not always apply well to a BB stock, although I've found it works quite well with FTEL. It also dosen't work well if there is a sudden major news announcement, it may rise so fast there isn't time to buy as soon as it breaks the upward resistance. FTEL is an exciting company with possibly a very exciting future, please don't let TA stear you clear of a stock with great potential, I just use it as a means of determing general trends. So far it's steared me well when I've paid attention to it, not to say it can't backfire tomorrow, such is life in stocks! Please let me know what method your friend used to also arrive at $3.50, I'm always ready to learn something new. Sorry again for the length of this note! Dave

To: Albert Martin who wrote (20925)	11/10/1997 7:14:00 PM
From: ed doell	Read Replies (1) \| Respond to of 41046

I am a lurker on this thread. I would like to commend the responsible posts made by more experienced members who have recommended that the far less experienced 1) get a full service broker, and 2) not invest in pink sheet or bulletin board stocks. The NASDAQ market in general is very different that the NYSE or AMX, and the OTC BB stocks are a very specialized market. It's your money...but in my humble opinion if you lack experience in the bulletin board market, take your money off the table now...these are serious shark invested waters...you could lose substantial money for reasons which have nothing to do with this company but everything to do with its market and market conditions in general and your experience. Regarding sell stops, if you think that the stock might be going down (this is in general) sell your position, or if you can afford to do so, box your position (short to the box, a difficult thing to do in the NASDAQ and maybe impossible in the BB or pinks). Eventually this will support the stock's turn around (when you unleg the short leg and buy back covering your short), and it protects your NAV all the way down. But my main point is this....with all of the various stocks out there...stay away from BB stocks if you don't have the experience... I am neither short nor long on FTEL...still studying it... good luck and best wishes to everyone, Ed