<<It's amazing how annoying you are. (I know, I know, name calling. At least I didn't say fly-spec by mistake.)
>I did not realize that FTEL was applying for full NASDAQ. I'll check into that.
My thoughts when you mentioned small cap listing "Where did you get this information? The psychic hotline?" Why didn't you call and check this out before 'waxing moronic'!>>
Marv, I was wrong. I assumed that it was small-cap because that is how QGLY went about it went they moved up. Apparently, it is quicker to get a small-cap listing then the Reg NASDAQ. I made an assumption that, obviously, was wrong. I've made a few mistakes on this board and they are embarrassing. Sorry.
<<>1) Excessive CEO pay. AND 5) The CEO has a big stake in making FTEL sound great so his large holding in FNET will becomemuch more valuable if the IPO is successful. Not to mention all the money he's making on FTEL. >FNET will become much more valuable if the IPO is successful. Not to mention all the money he's making on FTEL.
My two cousins are both on the Forbes 400 list. They each have at least 20 million shares of a company they own. The stock originally opened at 3, is now 60 after splitting twice and their dad says "the stock will go to 100 because the 'boys' want it to". That a very strongly motivated 'want'.
Personally I like the idea that the CEO will benefit.>>
The fact tha the CEO is benefiting and will in the future is great. It is always nice to have a management who is on your side. However, because of his stock position, he can almost write himself any paycheck that he wants. The fact that he has chosen such a large one gives me more reason for pause- another yellow flag.
Also, anything he says has to be taken with a grain of salt, IMO, because they have little sales now even though the company has been in business for a while. With all the money that he has been making on his deals, one should be careful, IMO. With a successful IPO Frank is positioned to make a lot more. How much has FNET been pulling in? Is Frank just a great saleman who can sell an idea to the investing public?
<<Frank is a man of integrity, as you would know if you spoke with him, spoke with the people who work with him and visited the expanding facility in Westlake.>>
I once bought stock from a con when I was eighteen. He was the nicest man and had church going friends who vouched for him. From that I learned: You can't tell a scam by the "nice" people involved in it. In fact, the best hype jobs are often pulled off by the people who seem the nicest, and most honest.
Am I saying every nice person, like Frank, is a con? Obviously not. Often people, however, put too much weight into a how a person seems. When Frank's company produces be big sales, then I'll know he's for real.
<<In fact, if you really are interested you can visit in February for the annual meeting, or if it serves a person of your negative, gratuitously suspicious character, just call Helen and invite yourself any time.>>
I'd be more interested if the past press release on the $ 2.5 mil in sales had actually been from the large company that was expected. I'll probably listen to any conference calls, however.
<<>2) Hardly any revenues despite being in business for years.
Frank's company has an 18 year history, he is very busy recreating it to be appropriate for the times.>>
Again, recreating is a story. I haven't seen concrete results. Hype stocks always have sales that are just around the corner. I'm concerned that FTEL's large sales won't materialize soon as some believe.
<<His sales people are in the process of meeting with major Fortune 500 companies who contacted Ftel.>>
A meeting is nothing. Now large sales mean something. Again, FTEL only has about $ 200,000 in sales per quarter for the entire company. Why?
<< Alan Londen of sales said he expects some major accounts to signed very shortly (Alan may have said in the next few days but I was distracted while speaking with him and may not have heard correctly).>>
In time for the FNET IPO? Will the news be substantial and concrete or something vague and insignificant in order to keep shareholders hoping?
<<Evaluation units were sent out beginning at the end of November. It takes a while for a company to evaluate a unit, especially year end when the holidays intervene. Not only do they have to evaluate the hardware and software, they also have to prepare their business plan to see how to implement the new technology. Consequently, we still wait, but not much longer.>>
Can you quantify "not much longer"? I've asked Ralleigh to do that. I hope he does. I'd say that if signficant, solid sales aren't made by the end of the 2nd calender Q of 1998, then FTEL has not produced. Of course, the carrot, if they don't produce by then will almost cetainly be extended further away and the game will continue until the bubble pops- if its like most, which I expect it to be.
<< >3) Being a peanut compared to the elephants in the industry
Not many elephants in CT. None yet in fact that I know of. But FTEL is getting the reputation of having the best sound quality for their soon to be national telephony company.>>
Lucent, ATT, COMS, WCOM, QCOM, ORCL, to name a few. Any of these companies at any time could potentially enter the market. That is what I meant by competition.
<< >4) Disappointment in company which bought the $2.5 mil in product based on the company's press release- meaning that they have a reputation for hyping so what else is being hyped?
What should FTEL do. Ignore the 'little guys'. The press release could have said "We just made a $2.5 million sale but it reeally isn't important. Its with an nonentity!" >>
I think the truth, the whole truth, and nothing but the truth is always appropriate. Mistleading investors, is never appropriate. The more reliable the managment in the past, the more funds will buy in the future.
<<I guess 2.5 million is something for you to sneeze at, when your head as stuffy as you make it sound. I suppose the companies you invest in start with multimillion dollars, or is it billions in startup investment.>>
Was the $ 2.5 mil in sales more a sale or purchase for a distribution agreement or something like that? I didn't think it was a pure sale as one might have hoped.
<< >Other points:
> a) The WCOM deal does not mean a whole lot because most hype stocks could have pointed to some big affiliation.
It's rough for a negative hypster when something good happens. Makes it more difficult to bad mouth the good news.>>
I don't mean to be a negative hyper. I'm just telling you my experineces. MTCI had its large bank affiliations. QZARF has some large asian affiliation. AGUI had the MSFT interest. RACE has mulit-billion dollar distributors. However, look at the price histories of these companies with great affiliations. It meant little or nothing. I say the same about FTEL's affiliation with WCOM. It means little until you see something concrete come from it, IMO. Of course, it does help to keep the stock interest up.
<< >b) Having "best" product endorsements doesn't mean a whole lot. It is worth a very small point, but not near as much as most would give it. I've seen RACE and AUGI both get the same designations. What did it mean? Both stocks ran up and then way down. Though both had the "best" products, neither could sell it.
You compare pigs ears with the silk purse.>>
Sure, in hindsight those companies are pigs ears. However, especially on the RACE thread, you never could have convinced them RACE's product wasn't the best and would oneday dominate its field. At about $ 8.00 I started warning them, but they scoffed at me, too. Was I sure RACE's product wouldn't sell really well? No. Were the odds much against RACE- yes. I also suggested numerous times that a stop loss be set. If they had, they would have saved a lot of money. Again, even buying FTEL can be good for a semi-investment, as long as you are willing to sell when it goes below the price you don't think it should fall under.
<< >Does that mean that FTEL won't succeed? Absolutely not. Are you batting WAY against the odds? It would appear so.
Stop waffling.>>
I'm not waffling. I'm saying FTEL is extemely risky and that the odds are way against FTEL succeeding. At $ 5.00 per share, I'd say that FTEL is very richly valued and could fall a lot from here. As a result, sell if the stock starts to act unusual (below $ 4.50b?). Contrary to many posters on this board, I see many yellow flags.
<< Although I guess it is consistent with how you do your investment web page. I quote: "Please note that for one reason or another, the Stock Libraries may not always contain accurate information. Glean from them what you may, but be aware that the
Library may contain inaccurate information, and/or only express opinions which may not be correct.">>
Yes, and I'd say the same thing now. I not only sometimes give my opinions, but I post the opinions and articles written by others. You should glean from them what you think is appropriate.
<< >However, I still doubt the tempest sales, etc., will ever materialize to a great degree.
Please present information upon which you are basing your 'prognostication' on. I would be glad to check with whoever you spoke with at Franklin to confirm your info.>>
Why don't you tell me what kind of sales you expect and by when. Also, why don't you tell me how/where you got your estimates. I'll add your projections, and Mr. Ralleigh's and others, to my website, if you make them public on this board. If you could e-mail me to make sure I don't miss them, that would be helpful, too.
I expect few future sales based on past sales and the lack of candor on past PR.
<<I do appreciate your post though. It is fun replying.
Marvin>>
Marvin, overall, I appreciate your approach. I hope I've better communicated to you my standpoints.
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