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

To: Doug Best who wrote (32470)	4/21/1998 3:23:00 PM
From: X Y Zebra	Read Replies (2) \| Respond to of 41046

>>For people who are confused about the "spinoff" announcement, I think it simply meant that FNET will operate as a separate company with independent management even though it is still majority owned by Franklin.<< Mr. Best, However, we do not know the full terms of said spin-off, has management agreed to "x" compensation package that would affect the level of ownership of FNET by FTEL? If so, that changes the picture for those who invested in FTEL in the past. In addition, As to market prices, for FTEL, in most cases prices are derived from expectations of future events, in a bb stock such expectations are harder to determine due to many events that may or may not take place. Having said that, the potential change in the ownership structure of FNET, creates an element of doubt in the eyes of the FTEL investors and potential investors. i.e. it creates an "unknown", markets hate unknowns, because although FNET will create revenues, we do not know the % of ownership that will belong to FTEL, since that could have changed, and same goes to the valuation assessed to FNET as an asset of FTEL. So far market reaction seem to be, at best, of hesitation, perhaps the market is giving FTEL, the benefit of the doubt, since the price seems to remain stable. AS more data becomes available, indeed the earnings report soon to be announced may be the information that the market needs to really evaluate the meaning of the spin-off. Again, future expectations, as far as I know, there has been no opinion by management of the new picture. A consideration to take into account is that many were not expecting this move, but rather an IPO in which FTEL would receive a direct benefit upon executing it. I focus on the "change of plans", since, again, it creates an atmosphere of, "I do not know what is next". It would have been interesting to have the price of FTEL at say, $5.00 or $7.00, to see what the market reaction and opinion as to the valuation of FTEL under the new scenario. My opinion only, and yes, I could be mistaken. For now, only observing the next few days, to have a clearer picture. Z.

To: Doug Best who wrote (32470)	4/21/1998 4:10:00 PM
From: elk	Read Replies (5) \| Respond to of 41046

Doug, I agree, people are assuming quite a bit, when discussing the transfer of FNET shares. I know if you or I speculated as these folks have done, but in a positive way, we would get trashed for Hyping. How the hell does someone get from the announcement of a Management team, the announcement of independent OPERATION of FNET, and the schedule and timeframe of the rollout, to FTEL owners are getting screwed? Are people living in a Fantasy world? Look at Mr McGruder, Ladies and Gentlemen! Look at the WordlCom Co-Location agreement, WHICH IS OBVIOUS PEOPLE STILL DO NOT HAVE A CLUE ABOUT!!! If people can not see a reason to hold this stock, based on the CO-LOCATION agreement alone, then they need to not invest in the Telecommunications Sector. If people Gave the SLIGHTEST MOMENT of THOUGHT to the Structure of WorldCom, and what our Agreement covers, then maybe, JUST MAYBE, they would have a CLUE!

To: Doug Best who wrote (32470)	4/21/1998 5:29:00 PM
From: STK1	Respond to of 41046

Doug I don't think its fluff or that it is not good ,I would like to know though what FNETS lines are worth and what revenue has been generated by the 100,000 nodes so far.We are a ISP and a ITSP now and I would think that in the last year we have added many more users and many more cities.I think that if the value of FNET was known it would give a better understanding of where we are and how much greater inpact the colo would be worth.As an ITSP we could easily gain rev by usage but as an ISP those rev would be a continued source of income.Monthly income recuring is a very important part of this company.ITSP calls can go up and down on the fly very quickly. To become an ITSP without additional revenue will take a lot of cash and will subject us to the whims of the ITSP market.I always thought we had a competitive ISP network I hope that also continues to grow as well.