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

To: STK1 who wrote (32369)	4/20/1998 4:24:00 PM
From: elk	Respond to of 41046

charles and David, a Question: The last word I have heard from FTEL is that they would retain 50-60% of FNET post IPO, have either of you any information that changes this? Do you think maybe they understood when they made their Business Plan, that there would be an CEO? Ah Duh, Do you think that maybe they could possibly have Expected to have an Executive Compensation, or do you think maybe FTEL just figured they could get someone to run this thing for free? Ludicrous...

To: STK1 who wrote (32369)	4/20/1998 5:29:00 PM
From: Martin P. Smith	Read Replies (2) \| Respond to of 41046

OK simple question simple answer. Following assumptions are made. FTEL gets NO share price benefit from ownership of FNET (bearish ) 50% margin ( bearish since our worst margin is stated as 62% ) PE 50 (bearish for VOIP company check the others) 22 million shares ( worst case bearish again ) $7 per share ( the higher of your two prices guess what bearish ) 15K per DVG ( bearish price is actually 20K ) 22 million shares * 7 per share = 154 million a PE of 50 means earnings would be 154 / 50 = $3 million given a margin of 50% means sales would be 3 * 1/0.5 = $6 million so given 15K per DVG that is 6,000,000 / 15,000 = 400 DVGs. ================ So how many DVGs does FNET require well approx 180 by Jun 30th . then approx another 200 each month to satisfy the stated rate of 20 cities per month. Hmm I can see 400 DVGs quite quickly. Martin Smith