Snake Bits & Bites

Brief Recommendations

1. Franklin Telecommunications Corp (FTEL - NASDAQ BB) - Franklin manufactures wide and local area network equipment in the communications industry which can be used by users of the Internet.
On or about August 24 FTEL introduced an Ethernet network interface card using Windows 95 developed by Microsoft. Franklin's Ultra Fast Hurricane/155 series can transmit at up to 155 megabits/sec compared to the 10 megabit/sec Ethernet cards that most current systems use. The faster speed of this Ethernet card will directly benefit users by providing faster data access. In addition, users will spend less time accessing network fax and mail servers and enjoy faster response time from the Internet Worldwide Web. The Ultra Fast Hurricane/155 can address individual LAN performance problems by giving corporate users their own 155 Megabit LAN segment.
At present revenues are small and the balance sheet and income statement are somewhat scary, but if you consider the recent introduction of new products and technology, FTEL in our opinion deserves a serious look and a small position being secured at current prices has the potential to appreciate dramatically during the next few years. At present there are only 6 million shares outstanding - most are tightly held. We like it and own it! -
Corporate # 805-373-8688 - 1-800-372-6556.
Broker: Mike Chesler at 1-800-331-1355.

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