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

To: topwright who wrote (36470)	7/20/1998 10:41:00 PM
From: VALUESPEC	Read Replies (2) \| Respond to of 41046

<<My best guess-timation is that Franklin's burn rate is about $400k per month. If that is the case, then these projections could eliminate almost half this burn rate by just flipping the switch on those contracts already announced.>> RB, I commend you for making some predictions, but as you would expect, I WAY differ from your guess-ti-mates. First, it appears that you are assuming that they will be 50% profitable on the $400K per month. I highly, highly, highly doubt that (50% of 400K would be about 600K or about 1/2 last quarter's burn rate, which is how I assume you are arriving at your figures). Am I misunderstanding what you are saying? If you are saying what I just said, I see no reason to believe that will be even closely reached. If you could elaborate on your assumptions, that would be helpful. I expect the burn rate to increase, as I've said before. Why? They have more employees, don't they? Didn't FNET just get a separate management team? Won't it cost money to get the new units operating up to par? Although I see that FTEL might have more money to play with, I see things as being, overall, negative- and more so than in previous quarters. Also, current cash balance may start to decrease, though they may get some money from the conversions. RB, I'll eat toe nails for a week if your numbers are even close based on what has been released to date (OK, maybe I'm exagerating). It sounds like you are predicting great things for the December 31, 1998 quarter. Of course, you've done this many times in the past and have been wrong ($ 1 EPS, $ 12 mil in reves, etc.), but at least we have a new time-frame with which to monitor progress with. I wonder if the "carrot" will be extended out even further than Dec 1998, if things are disappointing by then, still. FTEL: $ 2.06a VALUESPEC "vindicated, so far, for many of my words" valuespec.com