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Microcap & Penny Stocks : FNet=Internatl Voice/Fax/Data&Video Services ViaInternet -- Ignore unavailable to you. Want to Upgrade?

To: Stephen B. Temple who wrote (226)	5/10/1998 7:50:00 PM
From: george willse	Read Replies (1) \| Respond to of 609

Hi-Temp - I agree 100% with your posts on FTEL to FNET share distribution. I believe the price of FTEL would rise significantly should FTEL take this action. The main problem I see is that near term FTEL needs positive revenues to justify the rise in share price, or we will fall right back down, losing even more investor confidence. When we hit $10.00/share, there was no base to sustain us at that level, hence we dropped. In addition, the MMs, day traders, etc. had their feast as well. To get to positive revenues, FTEL (aside from FNET) has to (1) implement the most requested features (that are currently not implemented) and (2) get real purchase orders in hand for the hardware. It is going to take a few weeks to get #1 completed, and then possibly months in some cases before #2 is accomplished due to corporation evaluation lead times. Below are some major postives/negatives based on where we are today. On the positive side (some is IMHO) FTEL/FNET: ============================================== 1) has a collocation agreement with WorldCom 2) has $7 million 3) has 3 different hardware solutions to meet the customers needs at several levels 3) is NOT waiting for additional investment before populating the first selected sites with DVGs - this should produce early revenues and give an early view of the finished network and give the investment bankers the warm and fuzzies they need as well as put FTEL in a better position to negotiate - IMHO, FTEL has little leverage at this point and they need major $$$$$ to proceed with FNET 4) only needs to upgrade their software to implement the new features - if it was hardware as well, FTEL would be in a major world of hurt at this point 5) is taking Best of Shows over the competition - however, to date, they have been able to capitalize very little on this accomplishment 6) now has a separate management team for FNET - can they pull their charter off??? On the negative side FTEL/FNET: =============================== 1) per Hi-Temp's messages, lacks a perceived cohesive and effective marketing strategy 2) has lost at least two major windows in which to blow away the competition 3) because of the shift of thought on Wall Street, FTEL no longer has the ability to IPO FNET without demonstrating its revenue generating ability - last year this constraint did not exist for FTEL 4) does not have the ability to produce substantive Press Releases at this time, which could aid the sickly share price 5) NASDAQ is a big question mark at this time The Meyerson sell-off dealt FTEL a huge negative blow. A large part of the fact that we are not above $5.00/share to meet the NASDAQ requirement can be directly attributable to them. IMHO, near term, FTEL is hurting unless they land a major revenue generating contract or something just as good occurs; hopefully long term they still have the ability to separate themselves from the pack and get the job done (this is really starting to take on the cynasism of a prospectus!!). Happy Mother's Day to all you Super Moms out there!!! George