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

To: George Kirlin who wrote (36190)	7/15/1998 1:23:00 PM
From: elk	Respond to of 41046

George, Wrong Again. In case you missed it, these investors HAVE NOT BEEN CONVERTING and you can call FTEL to verify that. Oh and they would know since they have to be involved with the conversion of those shares, so you are barking up the wrong tree. Quite frankly, if yo understood the pricing of these shares, they WILL NOT make money by converting them now, they would actually be right around the break even or possibly be selling at a Loss. So enough assuming, please. Also re-read the S1, regarding FNet share ownership, it will clear up your obvious confusion...

To: George Kirlin who wrote (36190)	7/15/1998 1:26:00 PM
From: vic klimpl	Respond to of 41046

I did better than ask tom. The guy who signs the conversion papers said it was minimal.Some of the eight investors havent redeemed a share. I like you thought this was the case but it aint.I also have been told that these folks are long term investors and not flippers. I have been told this by the company.You may have another opinion of course. But I confirmed this and reconfirmed this many times over the last few months.I believe that a stronger factor is people who bought on the way down who are internet investors and are mainly traders,most on these type boards,have been selling out as it goes down.They did not get the bounce at 4 and sold at 3, those who bought at 3 are selling now and so on and so on. Probably some long time investors are cashing out but I dont think to many.Again its the old story,you ask yourself would I buy here or sell.It just mystifies me continually when I see the 100 share trade at the bid as right now.Its been going on for weeks.Just what if, a biggie is accumulating the stock through the mms and orchestrating the decline. Think this hasnt happened in the past on this stock.New mm shows up and this happens. Then of course when they get enough ......

To: George Kirlin who wrote (36190)	7/15/1998 4:38:00 PM
From: VALUESPEC	Respond to of 41046

George, your understanding mirrors my own regarding private placement holders. Often it is difficult to find out exactly what is going on, but usually when shares come up for possible conversion or sale, the stock price goes down. FTEL's stock price is going down. Is there a direct correlation? Who knows for sure? I suspected problems might arise for months before March came, and then before June 30th. Often when getting information from a company, which may or may not be something they would want to give, if you don't ask exactly the right questions, you may go away with the wrong impression/s. Also, how reliable is the information one gets about a car from the person who is trying to sell him the car (the stock)? FTEL: ~ $ 2.38 ValueSpec

To: George Kirlin who wrote (36190)	7/15/1998 8:42:00 PM
From: William Harvey	Read Replies (4) \| Respond to of 41046

George, There are 9 institutions in the original $7M financing package. They could convert now at a little over $2/share, ie 80% of the average closing price for the last 20 trading days (~$2.5). Now lest you see this as a threat, remember they profit best on an updraft. Let's say they could have sold at the highest close back on Oct 14, 1997 when FTEL sold at $9.93. The average for the preceeding 20 days was $4.62 and 80% of that was at $3.70. So they could buy at $3.70 and sell at $9.93. At least that's the kind of leverage they have. All they have to do is wait. Of the 9 institutions in the Series C Preferreds, only 1 owns less than 80k shares and JNC owns 482k. We saw a block of 82k trade at the bid last week, which didn't affect the price much. We don't see a lot of selling anyway but I doubt if they're going to mess with 5k blocks. I think time is on their side and they're long term investors by most people's standards. Once the momentum at Franklin reverses, they are in line with a doubling at least. It's not tricky but they can get even a bigger bang if they wait while we get the downtrend in hand and then sell their 1.6M warrants, continuing the downtrend. When the stock is as low as it goes, the market starts to see the pendulum swing back. With what they've gained from the warrant sale, they turn around and buy, creating their updraft. The stock begins to soar and of course, then they can sell into the rise. They have a tremendous stake in whether Franklin works. Why take a 25% profit now? Would you? Of course, you may have to admit that if they take such a thrashing to the stock, many will never return and then they may get burned in return. Like I said, there was a 82k block on the bid last week and the stock hardly budged. Go figure. WH