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

To: Jeff Bauman who wrote (23686)	12/26/1997 11:42:00 AM
From: Larrie Woods	Read Replies (1) \| Respond to of 41046

Jeff, Throw that type of thinking out the window. Stocks are worth what the market (people) perceive and how much they desire to own a stock. Seems like today, nobody is willing to sell for 3 5/8's and not many willing to pay 4 for ftel. So today thats what its worth. (Some of us feel that it is worth more but also feel that we have enough.) Yes let the world know. Its essentially all based on greed and the future promise. Hope this helps a little. Larrie

To: Jeff Bauman who wrote (23686)	12/26/1997 3:25:00 PM
From: Ray Burke	Read Replies (1) \| Respond to of 41046

Jeff, I think of the markets as an auction and the price of a company (share price) is set by what people are willing to pay for a company. This willingness to to bid on a company is determined by many things such as future earnings, prospect for the particular sector or products the co. is involved in, "the story", momentum of the stock, perceived value of the co., patents,book value, etc. If it looks good to buyers overall the price usually goes up...better bids. my2cents Ray

To: Jeff Bauman who wrote (23686)	12/28/1997 4:29:00 PM
From: SoliRA	Read Replies (1) \| Respond to of 41046

Jeff, I'm a new investor, too. The way I see it, a company has today value and potential value and emotional value. Today value is based on how much capital the company has. This is number of gold mines, ships, railroads, buildings, aircraft - things you can touch. It also includes things you can't touch but are also important - like employee's education and talent and name recognition. If the company goes bankrupt, shareholders may get a part of the value of what can be touched. Today value translates into today's earnings. Under stable conditions, this means dividends for shareholders. No profits, no dividends. No dividends, no stockholders. Simple. Potential value is more suited to FTEL's case. FTEL is still losing money (last I looked - could be things have changed). This normally would be a very poor place to look for dividends. FTEL's stock price reflects FUTURE earnings and future dividends. Share holders are willing to gamble that the company will start turning a profit, and a fairly good one at that, and provide them earnings in the future. It seems that most companies in the technology sector don't pay dividends. The rising stock price itself is a reward. Dell, for instance, buys back shares occasionally which results in more value per share in the remaining shares. Emotional value is akin to collecting coins or comic books, or overly-enthusiastic bidding at an auction. The price in these cases does not reflect directly on either current or future earnings value. The words "irrational exhuberance" have been applied to the entire market recently. People are accustomed to winning. The average P/E ratio is fairly high. Warren Buffetts been snooping around the bond market. The only sensible reason to invest in FTEL is your belief that it will start earning healthy profits, and grow. You can try "momentum" buying. That is buy a stock that's going up only because it's going up with the idea that you'll be smarter than the average bear and sell before it starts going down. I personally think your chances of succeeding this way are less than winning after a week in Las Vegas. If everyone decided tomorrow that the stocks are worth only 50 percent less, then they are. "Poof!" Like magic, portfolios lose half their value. Hope this helps you. Bob. I recommend you read an investment book - something like the "Motely Fools" guide.