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

To: Jack Sman who wrote (29221)	3/2/1998 4:31:00 PM
From: Seth L.	Respond to of 41046

Thanks Jack somebody just learned what happens when you ask for it at the market. Seth

To: Jack Sman who wrote (29221)	3/3/1998 6:45:00 AM
From: William Harvey	Read Replies (1) \| Respond to of 41046

Thanks for the log, Jack. Didn't get back til late so I thought I'd wait til I could make some sense out of yesterday. Overall, the day was negative, but.... Trading started out with more sells than buys: By 10:15, it was 33.1k shares bought at the offer but 59.4k sold at the bid. Nothing new perhaps, 'sell on the news'. After a little sideways movement, the buying came in at noon: From 12 til the close of trading, there were 109.7k at the offer and 62.7k at the bid. In all, a little negative (177.3k vs 180.8k) but strong at the end. Big blocks confirmed this. We had an even day for blocks (94k/offer, 97.5k/bid) but in the afternoon it was 70k/offer vs 40k/bid. And we did get a tick up on the bid at 3:59. I reviewed the S1/A and only found this with regard to the provisions for converting preferred stock: "The Company is authorized to issue 10,000,000 shares of Preferred Stock, issuable in one or more series, each with such designations, preferences, rights, and restrictions as the Board of Directors may determine. In accordance with such authorization, the Board of Directors has designated 740 shares as Series C Preferred Stock, of which all 740 shares are issued and outstanding. The Series C Preferred Stock is not redeemable, and has no dividend preference. Each share of Series C Preferred Stock has a liquidation preference of $10,000 per share, and accrues a premium at the rate of 8% per annum. The Series C Preferred Stock has no voting rights, except as required by law, and is convertible into Common Stock commencing in March 1998 at a conversion price equal to the lesser of (a) $4.64 per share or (b) between 80% and 85% of the fair market value of the Common Stock, based on closing prices during a measuring period prior to conversion, with a minimum of $1.00 per share. The Series C Preferred Stock is automatically converted into Common Stock in May of 1999." There is no mention of the impending IPO having anything to do with the conversion process. According to the (b) section above and the closing prices last month, the preferred holders can convert 20% of their Series C into a maximum of 293k shares all at $3.82. The holders of the preferred stock also own 1.8 million shares of Franklin. Rest assured that they stand by this stock stand to profit most by its success. Hope this helps. WH