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

To: Scrapps who wrote (26578)	2/1/1998 7:55:00 AM
From: topwright	Read Replies (4) \| Respond to of 41046

Good Morning F-telians, Gone all day yesterday and it took a while to get caught up reading "Worms Count Beans" a compendium of investment protocol that is sure to result in no significant benefit to any speculative investor. But hey, I'm damn glad I set aside an hour this morning to ponder these words of wisdom while enjoying my morning cup of java. Thank you Thomas and Mike??? Your foresight is numbing. Both I and a fellow investor in Franklin spent the better part of yesterday in meetings with the founder of a startup Internet Telephony company, one that has an aggressive business plan to go national this year. As we scrutinized his business plan, along with attached spreadsheet projections it became evident that the red ink was going to flow for the first seven months (pay attention Worms) as he ramped up the deployment of DVG's (Tempests). The sixth month into the projection reflected the bottoming of the "bloodletting",at that point in time he expected to have 25 DVG's in service (are you paying attention?) and in the following month the figure jumped to 100 DVG's. Sixth month to seventh month cumulative net profit projection was -$338k to -$17k respectfully. Months 8 & 9 quickly resulted in a rapid acceleration of positive cash flow, $129k to $276k respectfully. I won't bore you with the month to month progression but let me say that the projected numbers were impressive, 24 months out projections reflected 450 DVG's producing a net accumlative profit of over $10 million. All this based on netting .02 per minute. Now anyone with half a brain knows that business plans and the attached supporting documents (spreadsheets) paint a very rosy picture and read like a novel. And, as it pertains to this meeting I saw nothing that would alter that viewpoint. A good analogy is the difference between applying for a home loan and filing you tax return. The bank application tends to accent the positive, yet the same individuals 1040 filing may lead you to believe that you are looking at someone elses filing. Isn't it funny how government documentation have that effect? S1, prospectus, gee it must be that red herring effect. Speaking of fish, want to go fishing, worms? RB BTW, I fully discounted what we discussed in yesterday's meetings and came to the realization that any bottom line projections based on a non-operating or non-existing business is sheer Tom-foolery (nah couldn't be a co-incidence). About the only thing that I found worthy of being culled out of the projected stats had to do with the netting of .02 per minute extended by normal usage rates, yielding some pretty impressive results even when halving and quartering. If nothing else it certainly gave us a better grasp of the potential profitability that can be derived off a DVG. One last question directed at either Thomas or Valuespec before I go: I would love to hear your predictions regarding the outcome of the Superbowl. Does your sage analysis of numbers indicate that Green Bay will win? I know Denver certainly looks outclassed. Wildcard, oops touchdown. Enjoy the game. You may be right, we may be crazy..... But we may just be the lunatics your looking for.... Turn out your light..... don't try to save us..... We may be wrong.... for all you know we may be right... Billy Joel