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

To: philan who wrote (36181)	7/15/1998 11:57:00 AM
From: George Kirlin	Read Replies (3) \| Respond to of 41046

Wow, Philan, thanks for uncovering that little gem. Investor Confidence at an all time low, I agree, and everyone asks who is selling; the Series C Preferred holders are converting and making it worse. Unfortunately, too many of them were just there to provide the funding with a guaranteed short term flip for some profit and we long termers are left watching equity erode and dilution continue. It's all in the revenues or in a "big name" alliance. Neither of which has happened yet. Third quarter numbers should be rosier, but what til then...

To: philan who wrote (36181)	7/16/1998 10:33:00 AM
From: VALUESPEC	Respond to of 41046

Philian, anyone who knows anything should have an idea about what you are talking about. This is one of the reasons I get frustrated with many of the so-called knowledgable bulls on this thread. Both you and I have from time to time given them the documentation to look at the potential problem themselves, but they have generally acted like this is some strange thing that is happening. Rule #1 with small caps: Make sure you are aware of any upcoming potential dilution. Often that will explain the apparent low price of the stock, or it will point to potential problems in the future. I've copied one of the links you've provided regarding the dilution, so that others can re-read it for themselves. I have not personally verified the math, but the priniples are there for you to read. Hopefully, you will have ears to hear with and eyes to see with. <<To: James E. Glover (25753 ) From: George Kirlin Friday, Jan 23 1998 2:31PM ET Reply # of 36235 All, amended S1/a, makes for an interesting read. Items I have picked up so far: It seems to be the additional registration of the Series C preferred shares in a majority sense, about 1.85 million shares converted from the preferred shares. These shares are being registered now, but cannot be converted until March 1998. At that point, they can be converted into FTEL shares at the lesser of (a)$4.64 each, or (b) between 80-85% of the market value of the common based on closing prices around conversion. All this IF a FNET IPO has not happened by JUNE 30, 1998. If a FNET IPO happens before June 30, 1998, then about half of these, about 1.5 million, would be converted into FNET shares. If FNET doesn't IPO by July, the additional dilution could amount to a total of 6.7 mil more shares or a dilution of 42%, totalling about 22.7 million shares. About half, of 3.1 mil shares were already registered in the first S1, and we have seen some of the selling of those already. It would appear that Frank and Co. will have to do some great sales to offset these additional shares coming into the market, especially, beginning in March 1998. Anyone else get into this S1 yet???>> Many didn't believe that the non-event of the FNET IPO by June 30th was important. I said time and time again that it was, for various reasons (just as important was for credibility, IMO). Anyway, for anyone who is still confused about the stock action since Meyerson started to sell, I hope this helps shed some light on the situation. FTEL: ~ $ 2.34a ValueSpec