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

To: Cindy Cannon who wrote (40230)	1/21/1999 12:47:00 PM
From: James Bowser	Read Replies (4) \| Respond to of 41046

From the 10Q: Cash and cash equivalents and net working capital totaled $3,433,000 and $3,595,000, respectively, as of September 30, 1998. The primary source of cash was net proceeds generated from equity financings. The Company has relied on sales of new shares and the exercise of warrants and options to fund operations for an extended period of time. The Company received $10,150,000 and $1,000 in equity financing, for the year ended June 30, 1998, and the three months ended September 30, 1998, respectively. Its subsidiary, FNet, raised $398,000 for the year ended June 30, 1998 and $18,000 for the three months ended September 30, 1998. FNet has continued to experience losses, due to the growth nature of the Internet services business and development of the IP Telephony business. In addition to the equity financing described above, the Company's President has deferred portions of his compensation, and has on occasion converted debt to equity in order to preserve the Company's cash. >> I have followed this company for 5 years. They are always hyping some new product they have but it never translates into any meaningful revenues or earnings. The last "big thing" was the D-mark product which they claimed US Robotics (Now part of 3com) was supposedly buying....it never happened. Have you ever done a voice call over the internet? The quality is poor and variable and always will be. The internet is a variable bandwidth, packetized medium that will never lend itself well to voice communications. That's why a company called GTCC is offering service over a private switched network instead of over the net, check out their recent press release. FTEL has a lot of hypesters that buy the stock when it's under a buck and then hype it up to over $5 and then unload it to unsuspecting folks who think they are getting in on something big. It then sinks back below a buck and the cycle starts all over again. Check out the 5 year chart if you don't believe me. I have talked to this company numerous times and they fuel the hype also without ever giving me any real information other than innuendo about how great they are. The only thing they have proven to be good at is selling their stock. Anyway, I am sure I will piss off 90% of the people here with this post, but I can't resist warning unsuspecting people who may be getting sucked into this stock at these prices. Anyway, in the short run it doesn't really matter what the reality is, what matters is how many people are telling the bulletin board readers to "GET IN NOW" while they walk out the back door. Eventually, all the supporters leave the building and all you have left is a bunch of bewildered poor souls that wonder why the stock isn't going up anymore and where all those people who loved it went. Before any supporters of this stock start to accuse me of being short, I am not, in fact I am long the stock, because hey, what the heck, I may as well ride the hype train also, and I can't short bulletin board stocks. I'll be gone as soon as I see the classic hype train peak out, like I've seen so many times before. Good Luck, and keep posting that time and sales info, it's sooooo helpful, <VBG>.