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

To: sammaster who wrote (33250)	5/1/1998 5:35:00 AM
From: William Harvey	Respond to of 41046

samir, These preferred holders are institutions that invested a total of $7.4M in Franklin back in November and December. If past is prelude, it doesn't look like the conversions will go on this month. Besides, if the price drops below $2.75, they lose money with conversions. They get an 18% profit (plus 8%/annum) if Franklin is merely at its 20 day moving average. They're looking for a lot of news releases in a short period to drive the stock way above the moving average. That's their window of opportunity for the maximum profit. Under those circumstances they'll convert, but I don't think we'd notice any selling, because it's very likely that they'd just hold onto their stock, purchased at the low conversion price. WH