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

To: Seth L. who wrote (25373)	1/16/1998 4:38:00 PM
From: David McCleary	Read Replies (1) \| Respond to of 41046

The true answer to conflicts usually lies somewhere between the two extremes. On this board we've got jean in one corner stating that this stock is overhyped and worthless. Looking at the recent orders from Bay Networks, the Computer telephony magazine article about FTEL's quality, the Syracuse award for quality, FTEL's recent feeling that it needed more capacity by buying space with Worldcom's network, as well as other news I'm sure I'll be reminded of FTEL certianly does not appear to be overhyped or worthless in the least. There are pleanty of things to be excited about when it comes to FTEL's future. In the other corner we've got those who feel that as soon as FTEL is NASDAQ listed we will suddenly be bought by every major mutual fund and institutional investor in the country. $15 by Feb 2 these people say. Well, with a book value of $-0.06, a price/book value of infinity, a price/sales ratio of 21, and cash per share of only $0.02, do any of you really believe mutual funds or other sophisicated investors with any serious money will touch this stock at this time? I could be wrong, but I'd seriously doubt it. IMO, FTEL is going to see some serious upside resistance until fundamentals catch up to the current price, this will especially be the case once we are Nasdaq listed. Rarely do you find stocks this fundamentally overvalued on a national exchange, only on the BB exchange is this permitted. Once Nasdaq listed, I wouldn't be suprised to see a price drop for this very reason. However, I am also convinced that long term FTEL has the greatest potential of any stock I know for all the positive reasons listed earlier. Good luck in all your investments and try not to be swayed by extremists in EITHER corner! Dave