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

To: sammaster who wrote (35259)	6/25/1998 9:23:00 PM
From: vic klimpl	Respond to of 41046

I am more focused on what the level of sales per month is from june going forward. I dont know how they are going to account for sales to a subsidiary.I am not an accountant but I know in my company its always been a mystery to me.Sometimes on division books the sales and price as if it is to an external customer.Thats more the norm these days so it gives management an accurate picture of each divisions profit performance.You can see if a semiconducter division sells its components at cost to the pc division of the same company the pc division would record whopping profits while the internal semi div. wouldnt.When it came time for upper management to make an investment decision they might not give it to the component div. because of that distortion and "shoot themselves in the foot". But its a nice problem to have when you are vertically integrated.Let me give you my take on ftel and why they have an advantage.When fnet gets rolling,if it looks very profitable but competition comes in,frank could make a decision to forgo ftel profits on the dvg so fnet could get market share.With hardware a large portion of the cost equation,it would put us in a great position to beat the competition on price.If competition on the otherhand does not come in at once on a price basis he could opt to sell to fnet at price and book large ftel profits.Thats why I believe we are in good shape.We are unique and we arent even being rewarded right now as run in the mill company.sorry for the long response.