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

To: Charlotte who wrote (23685)	12/26/1997 11:11:00 AM
From: Jeff Bauman	Read Replies (3) \| Respond to of 41046

A little off topic: I have a basic investing 101 question. I have been investing in stocks for over 10 years now and I still to this day can not figure out the connection between a company's profits and the price of a stock. I know about earnings per share and how they are figured, but let me explain my confusion. You have company ABC(FTEL) that makes a widget(voice server), they offer shares in their company in exchange for money. Lets say there are 15 million shares out there for the public to fight over. Pretend that the shares have now been out there for a few years now and in the year 1998 they make $15 million in net profit. This profit is announced at the end of the year and everyone likes this. BUT!!!!!!!!! What if no one sells or buys one share. The stock price doesn't move. Everyone always talks about big announcements and making profits. This is all fine but the real driving force behind any stock is if people decide to buy or sell shares!!!!!!!!!!!!!!! Rumors and big announcements makes people create supply and demand for shares. I think the ONLY time profits and earning are important is when a company decides to pay dividends per share. We are far from that. To summarize, The earnings that a company makes and the shares put out by a company are totally two different animals. What am I missing??? Everyone, lets put out a large sales campaign to get people to buy shares. Forget about profits, "Buy FTEL shares, just because!!" Any help to enlighten will be appreciated. Thanks in advance. Merry Christmas and lets hope for a good "98"! Jeff