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

To: Giora Zeevy who wrote (25059)	1/14/1998 10:20:00 AM
From: VALUESPEC	Read Replies (2) \| Respond to of 41046

Giora, that "IF" is very important. IF the tempest, etc., actually result in significant sales, etc. IF only is what most hype stocks are made of. At his point, I see nothing to differentiate FTEL from all the others. They still have no significant sales. They are still losing money. They are still issuing convertibles at terrible rates, IMO. There current, pathetic sales, are diminishing. What is so good about FTEL? You can, perhaps, ride it for a momentum ride. What is the smart money doing? Probably staying away from it, or just trading it for profit. These stocks can often fly for a while based on investor ignorance. Take a look a RACE, for instance. It was up in the $ 20's and is now in the low $ 3's. To me, FTEL sounds almost exactly like FTEL. Why? RACE has a revolutionary communicatons product RACE has "mulit-billion" dollar companies marketing its product RACE's old product line is diminishing. RACE has the BE THERE ! product that hasn't had singnificant sales RACE has a very active SI thread RACE has had equity financing that wasn't favorable Maybe FTEL is different. Maybe the product will eventually sell really well. Who knows? Anything can happen. You could buy a lottery ticket and win on your first attempt. Has anyone looked at the balance sheet of this company? It looks terrible. Not even the recent sale of debentures will do a lot to help. They still only have about .50 per share, if I'm not mistaken. With no profits, no significant revenues, etc., I think it is reasonable to expect more dilution in the future. Also, why do you think the company sold the debentures so cheap? Because the company was worth a lot more, or because that was the best deal they could get? Again, I'd suggest waiting until the expected sales materialize or trading with a somewhat tight stop. So far, I'm not impressed by FTEL. In fact, it looks fishy to me. FTEL: $ 5.94b $ 6.06a vol 17,600 VALUESPEC valuespec.com