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

To: elk who wrote (22661)	12/5/1997 11:05:00 PM
From: Mitch Aunger	Respond to of 41046

Evan, I'll assume your math is close.... AND REMEMBER that is the hardware side, for FNET, there is recurring revenue from every MINUTE of phone time used! All going straight to the bottom line in black! Mitch

To: elk who wrote (22661)	12/5/1997 11:08:00 PM
From: James E. Glover	Read Replies (1) \| Respond to of 41046

Evan: Take it from someone who lived in a corporate environment that WISHED it had the agility to do what Frank Peters is doing! What more could any stockholder wish for. My heart goes out to Frank Peters and family for the loss of a man who gave us Frank Peters. Jim Glover

To: elk who wrote (22661)	12/6/1997 12:26:00 AM
From: Stephen B. Temple	Respond to of 41046

All: If you take this with a grain of salt, you have been mislead by other statements. ggg Huge!!!!! "As far as I know, we are the only company designing, building and USING our own equipment to provide a new telephone SERVICE". Gigantic!!! "On the equipment sales landscape, we are well positioned to compete with anyone because we are the designers of our own fate. We invented it. We manufacture it. We sell it". Here's was I really liked, and Frank had no reservations in mentioning it. ggg >>> ""System products made of proprietary software and hardware sold by FTEL which are extremely hard to copy"" ""Therefore we have reorganized the company to focus on the Tempest and FNet. Some projects from the past will be postponed or canceled so we can use all of our people to assure the success of the Tempest DVG equipment sales and the FNet service offering"". That wasn't hard to figure out in the visit for Dave and myself. gg Speaking of the Meeting: Helen will probably put out invitations and where Hotel accommmodations will be setup, Helen made arrangements at the Radisson in Westlake for Dave & myself if anyone is interested. They didn't have corporate rates for Franklin, but after mentioning I was there on business, Dave and I did get 130.00 rooms for $ 90.00 with double beds for each night. I'm sure Helen will have all the answers soon after the Expo coming up. once-in-a-life-time caliber opportunity-Tempest'2

To: elk who wrote (22661)	12/6/1997 12:29:00 AM
From: David McCleary	Read Replies (6) \| Respond to of 41046

Evan, excuse me if this is an obvious question, but aren't you confusing gross profit with net earnings? Is this that new kind of math? <ggg> And if your correct about a 75% profit margin that scares me to death. With profit margins that high the door is wide open for competition to enter with a feeding frenzy. Let's assume kindly that FTEL receives 40M revenue next year. With a profit margin of a more likely 20%, but I'll use 70% for humor purposes, we have a GROSS profit of 28M. Nice scenario, unfortunatly FTEL has bills to pay. Earnings are generally 15% of gross profit making 1998 net income 4.2M. Keep in mind this assumes a profit margin of 70% which is highly unlikely. 4.2M earnings spread across 18M shares gives $0.23 per share earnings, not your $1.00. But still, not too shabby a trend of earnings growth relative to previous years. With an average P/E of this industry being 25, that gives us a share price of $5.75 at the end of next year. Even with that it is still a 31% price appreciation in one year (using your numbers of 40M in revenue and 70% profit margin). If you follow TA and we see the opportnity to buy at $3.50, that means a 61% price increase! Dave