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

To: David McCleary who wrote (26791)	2/2/1998 8:47:00 PM
From: topwright	Read Replies (1) \| Respond to of 41046

David, congratulations on the contest. As you know from my previous post that I don't put a lot of faith in TA on BB's I do however agree with overall assessment regarding P/S and P/B ratios in general. What I wanted to ask is something that maybe I may be mistaken on, you stated that Franklin's P/b ratio was 99.99 or something like that, right? Maybe this is where you can help me. I'm taking Franklin's assets or book value as being worth $8 mill (from the recent PP's) and dividing that by approx 16 mill outstanding, resulting in .50 per share book value. This compared to a price of approx $5 would give it a P/b of 10. What am I missing here? Look forward to the lesson. rb

To: David McCleary who wrote (26791)	2/2/1998 8:48:00 PM
From: vic klimpl	Read Replies (1) \| Respond to of 41046

can you run those numbers for quest.Its a skyrocket or idtc so we may get a gauge for this.Does the recent influx of cash t ftel about 8+million alter the p/s?You know you are doing a great service. Afterall a stock is in competition for the investor dollar with its peers. Maybe we could construct a benchmarking table showing these measures against the quest,vocalwhatever,idtcs.Can anyone out there help with the symbols of other internet companies so we can build a comarative table.

To: David McCleary who wrote (26791)	2/2/1998 9:27:00 PM
From: Sert	Read Replies (2) \| Respond to of 41046

Despite the fact that FTEL has been around for quite a while, based on their almost exclusive emphasis on Internet Telephony, I think they can be considered a technology leader "startup" company. Many analysts, including I believe Mike Murphy of CTSL newsletter, pay more attention to a different ratio, i.e. price/research and development (P/RD ?) rather than price/book (P/B) or price/sales (P/S) for such companies. Of course, it is not easy to quantify research & development considering factors such as patents, copyrights, propriatery algorithms, barriers to entry, exclusive relationships, quality of R&D, how close to real-life applications, etc. many of which are subjective concepts. However, if analyzed using the price/research and development ratio instead of P/B or P/S ratios, I believe FTEL would look a lot better, quite possibly justifying its current price and even more. I wouldn't be an FTEL investor if I did not think so. The P/RD ratio should also explain why concentrating undue attention on the upcoming quarterly revenues or earnings is quite meaningless. I'd rather attempt to analyze and quantify FTEL's R&D and its potential to turn into dollars in the future. Regards. Sert