I 've noticed this stock broke ouf its 50 DMA quite aggressively ,, with stochastics showing a nice little erection ... been closing on UT for a week now... also many of you recommended this stock to me,,so I did some sniffing around..
01/08/98 3,000 0 1/4 0 1/4 0 1/4
01/09/98 70,000 0.29 0 1/4 0.29
01/12/98 41,400 0.27 0.26 0.26
01/13/98 28,000 0.28 0.26 0.28
01/14/98 494,000 0.36 0 5/16 0.35
01/15/98 258,700 0.37 0.31 0.31
01/16/98 180,000 0.35 0.32 0.34
I talked to IR at length today ,,as I am discovering this new growing business,, at first I was skeptical as to why it dropped from 7 to low of 1/4 ,, but Wayne explained the FNTNs past , present and their future plans...
I was also surprised by Waynes no BS,, he didnt dress it up with hyperboles and rapid breathing..,,.. said to me to think of this as a start up,, went through a hell due to insider and old guard selling,, CEO getting it organised,, with Hill contracts,, possible 60 million was mentioned on Jan 14 PR news ,, but I think in reality in the region of 15 mill with 2.mill nett at 20% gm ...
WCOM alliance is there,, their target is simple 2% of the segment..
no more no less... anything beyond that at present infrastructure would be too ambitious IMHO..still at 2. mill with current forward looking revenue on Hill contract alone would give .15 eps for 98 ,,, on 13 mill at PE of say 20 = $3.07 per share... anything else will add to the bottom line as a sheer gravy .... if another contract like Hills came up at say 15 mill rev and again 2 mill nett.. eps will jump to .30 and at conservative multiples of 20 will give a fair value of $6.. close to 52 week high..
Down side shares going back to 1/4 of December ..upside is $3.00 forward looking based on Hill... if all goes well with reasonable employee costs.. and ceo dont hang out at the titty bars,,
20 employees now and opening various branches,, CEO now in west coast trainging regional managers,,, sales types, base draw against commision , administrative and techinical people....having lunch with ceo at his office on Mon,,, will suggest Chinese take out and pick his brain, Office is kitty corner from my condo,, 30 steps away,,by the UN,, 1 Dag Hammersjold Plaza,, very exclusive building..... will report on Mon..
13 mill out 11 mill float.. CEO owns the biggest chunk , rest in public hands due to original officers selling out ... reverse split...can only issue restricted 504 shares can only raise one million dollars per annum,,,,, hence no reg S as a non reporting co,,,,, financials are very simple.. will be reporting soon as all the new offices are finished setting up ..
I was inferred to a very aggressive acquisition deal in making,,, FNTN has a candidate co with NASD listing,,, will do stock swap , rather than cash deal... in order to be listed ...
I like what I see so far risk/reward ratio... down side is .25 immediate upside is 1 1/2 ?
I will buy on Tuesday ,,depending on my impression of CEO..
Also will find out really how many shares who owns them the MMs,, who would unload if I buy ,,, where he is going with this co ,, is this a scam ? will see the contract with the Hill and his business plan.. his vitae,, past employment and experience etc...
Have a good week end ladies and gentlemen..
Joe TPRO |
