Franklin Wireless Corporation (FKWL)

[grp316]

Nice to see a little more volume than usual, hope it keeps up

[MikeDDKing]

A block trade of 18,200 shares traded at $2.84!

[MikeDDKing]

Franklin Wireless Announces Cancellation of 250,000 Shares of Its Common Stock
On Monday April 18, 2011, 9:15 am

SAN DIEGO, CA--(Marketwire - 04/18/11) - Franklin Wireless Corp. (OTC.BB:FKWL - News), the market leader in dual-mode WiMAX and CDMA modems for 3G and 4G wireless broadband data communications, today announced that it has cancelled 250,000 shares of Franklin Wireless Common Stock following the departure of one of the former senior executives of FTI (formerly Diffon Corporation).

In October, 2009, Franklin Wireless completed the acquisition of approximately 51% of the outstanding stock of Diffon Corporation in exchange for cash and shares of Franklin's Common Stock. Diffon was later renamed Franklin Technology Inc. (FTI) and provides design, development and manufacturing services to Franklin for its wireless data products.

Franklin Wireless' control rights of, as well as its stake in FTI, remain the same as before and Franklin's outstanding shares have been reduced by the amount of the cancelled shares. The cancellation was effective March, 2011.

About Franklin Wireless

Franklin Wireless Corp. (OTC.BB:FKWL - News) is engaged in the design, manufacture and sale of high speed wireless data products including third generation ("3G") and fourth generation ("4G") modems, routers and modules. Our current products are focused on widely deployed cellular technologies including CDMA EVDO Rev A, HSPA, WiMAX and LTE. We were the world's first supplier of both CDMA EVDO Rev A and dual-mode (CDMA EVDO Rev A/WiMAX) Universal Serial Bus (USB) modems. Franklin's other products include Wi-Fi "hotspot" routers (which operate over WiMAX or CDMA networks) and wireless modules that are generally sold to original equipment manufacturers (OEMs). Our company's primary customers are wireless carriers who seek innovative, reliable and cost effective technology solutions for their subscribers. Our customer base extends from the United States to South America and the Caribbean.

Franklin Wireless is headquartered in San Diego, California and has a majority ownership position in Franklin Technology Inc. (FTI), a research and development facility located in Seoul, South Korea. FTI provides design, development and manufacturing services to Franklin for its wireless data products. For additional information, please visit www.franklinwireless.com.

Safe Harbor Statement:

Certain statements in this press release constitute "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements, expressed or implied by such forward-looking statements.
Contact:



Contact:
Richard Walker
Franklin Wireless Corp
[phone]
[e-mail]

[Rawnoc]

Agreed. If I wasn't already loaded in FKWL I'd be loading on this news.

Heck, I'm thinkkng of buying more. Somebody nudge me.

[MikeDDKing]

Very nice FKWL news!

[Rawnoc]

Franklin Wireless Announces the Market Release of the U151 HSUPA USB Modem

SAN DIEGO, CA, Apr 14, 2011 (MARKETWIRE via COMTEX) -- Franklin Wireless Corp.
(FKWL), the market leader in dual-mode WiMAX and CDMA modems for 3G and 4G
wireless broadband data communications, today announced the upcoming release of
its new U151 USB modem. This is a single-mode device using High-Speed Uplink
Packet Access (HSUPA) technology and is expected to be available on a worldwide
basis in May, 2011. The U151 features a sleek and compact design and operates
over either 850/1900 MHz or 900/2100 MHz frequency bands, features "plug and
play" installation with no CD required and includes very intuitive and easy to
use connection manager software.

"Our new U151 HSUPA USB modem fills an important need in the mobile computing
ecosystem," stated OC Kim, president of Franklin Wireless. "We feel that the U151
will provide many of our carrier partners and their customers with a reliable and
very cost effective solution compared to other similar products currently
available in the market."

The U151 modem supports Windows(R) 7, Windows Vista(R), Windows XP, Linux and Mac
OS(R) X.

About Franklin Wireless

Franklin Wireless Corp. (FKWL) is engaged in the design, manufacture and sale of
high speed wireless data products including third generation ("3G") and fourth
generation ("4G") modems, routers and modules. Our current products are focused
on widely deployed cellular technologies including CDMA EVDO Rev A, HSPA, WiMAX
and LTE. We were the world's first supplier of both CDMA EVDO Rev A and dual-mode
(CDMA EVDO Rev A/WiMAX) Universal Serial Bus (USB) modems. Franklin's other
products include Wi-Fi "hotspot" routers (which operate over WiMAX or CDMA
networks) and wireless modules that are generally sold to original equipment
manufacturers (OEMs). Our company's primary customers are wireless carriers who
seek innovative, reliable and cost effective technology solutions for their
subscribers. Our customer base extends from the United States to South America
and the Caribbean.

Franklin Wireless is headquartered in San Diego, California and has a majority
ownership position in Franklin Technology Inc. (FTI), a research and development
facility located in Seoul, South Korea. FTI provides design, development and
manufacturing services to Franklin for its wireless data products. For additional
information, please visit http://www.franklinwireless.com.

Safe Harbor Statement:

Certain statements in this press release constitute "forward-looking statements"
within the meaning of section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. Such forward-looking statements involve
known and unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company to be materially
different from any future results, performance or achievements, expressed or
implied by such forward-looking statements.

Contact:
Richard Walker
Franklin Wireless Corp
[phone]
[e-mail]




SOURCE: Franklin Wireless Corporation
mailto:[e-mail]


Copyright 2011 Marketwire, Inc., All rights reserved.

[MoneyMan]

Just waiting on the next leg up here.

[shermann7]

I will double that!!!

Thanks for the tip by the way - This is an investment for me and not one of those keep trading it stocks.

Shermann

[Rawnoc]

Wise.

[grp316]

just got my first position of fkwl. I hope it's future is as bright as it looks.
Grant

[Guy]

No problem. Glad i could help.

[ghmm]

Thanks for asking and posting the info. I am not a shareholder but the second question is something I would definitely have wanted clarity on before buying.

[Traderfan]

Ok thanks. Yeah the possible legal expenses are a bit annoying. Would be great if they could settle this lawsuit as soon as possible.

[MikeDDKing]

It is possible that the patent infringement issue is holding the stock back but I think that lawsuit is likely bogus. Here is a post I wrote about that:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=59720593

One update to that post is that FKWL is selling MiFi type product now but I think it is in very limited quantity.

[Traderfan]

Mike, in your view is the patent infringement issue a possible reason why the stock is still that cheap after last quarters earnings? Or do you think it's just still very underfollowed?

[MikeDDKing]

Those are good questions and answers.

[Guy]

I contacted the company and asked
two questions. The first one was if they
have any plans to apply for trading on a higher exchange (ie AMEX)? since the the company meets all the criteria.

The answer was that they are certainly aware of the advantages of moving up to a higher exchange and The NASDAQ Capital Market would be a much better alternative than the AMEX and It has several listing requirements including a minimum stock price of $4.

The second question was: Can C-Motech sell the remaining 1.6 million FKWL shares they own on the market or are they obligated
to sell it to FKWL by the end of March?

The answer was that C-Motech is obligated to sell their Franklin stock back to Franklin Wireless (and not on the open market).

[swampboots]

FKWL Ok who got the 2.70 prize, no cheating just a show of hands?

[swampboots]

FKWL: (unchanged share price) head shaking lethergy masked by probable share buy- backs by prenegociated headwinds now uncorralled by MM's, or could be an upstart little fund vieing for same.

[MikeDDKing]

Someone is buying some big blocks of FKWL. In the past few minutes there have been 50K shares purchased in 4 transactions.

[MikeDDKing]

Very nice!

[Rawnoc]

Some nice love for FKWL today...

[swampboots]

FKWL wrath of unchecked previously masked volume coming in, chickens are coming home to roost.Yikes I am running out of baal (yes the whole assembly) banal DD.

[swampboots]

FKWL 2.90:Swamp your a pumpin primate playing a cheap ploy.

[swampboots]

NJNORM: ever get the 50 bagger as this stock is 40 times your nickle but do not know about dilution?

[swampboots]

Swampboots humbly annouces that he just member markered this board (FKWL)! He is also in an uncontrollable goofy mood as he knows little of direction of short term share price except to note that in 5-6 years of holding this stock major downward moves were always followed by much higher share prices even in the face of hugh insider large block trading belting share prices.

[swampboots]

FKWL: nuts firming up cover blown,vol changing, hate it when this happens.

[swampboots]

FKWL small dumbing down shaking the tree , come on brilliant ones sell,sell sell!!!!!!!

[swampboots]

FKWL "gemming down" on scant irrepressible vol, I have plans to make 15 more buys on down fall without news as FKLW has history of shareholders being clueless.

[Rawnoc]

Added a few FKWL myself today......again.

[MikeDDKing]

I have a huge position myself.

[swampboots]

Drunk from buying all FKWL I can afford.....Love when it turns varmit at same time many clueless!

[azs]

Crossing my fingers!

[Rawnoc]

We will have sold FKWL at $10+ by the time it goes through. :)

[MikeDDKing]

From what I have heard from the talking heads, the AT&T/T-Mobile merger will take 18 months to close and also involves some regulatory headwinds. I think that will have little impact on FKWL in the near term and probably in the long term. Furthermore, with FKWL's LTE products they will also be able to sell to AT&T which is imploying LTE.

[swampboots]

I just noticed Sprint was not bought by T Mobil and Verizon needs to kill what's left, wonder how FKWL orders and product will mesh?

[hogfan2]

stockpeeker posted this info on another board...found it interesting in terms FKWL valuation...hog

Benjamin Graham, the man who developed this equation, was a former mentor of Warren Buffett and is the so-called godfather of value investing.

The Graham Number, or the maximum price an investor should pay for a stock, is derived using only two data points: current earnings per share and current book value per share.

The Graham Number = Fair Value of a Stock = Square Root of (22.5) x (Earnings per Share) x (Book Value per Share).

The math of the Graham number is relatively straightforward. It is predicated on the belief that the price-to-earnings (P/EPS) ratio should be no more than 15, and the price-to-book value (P/BVPS) ratio should be no more than 1.5.

0.35 times 1.35 times 22.5 equals...share price of 10.6

http://seekingalpha.com/article/257313-contrarian-ideas-4-undervalued-stocks-stuck-in-a-downtrend?source=article_sb_exclusives_1_old

[Rawnoc]

Not with that attitude.

[MikeDDKing]

LOL. I just assumed that you were skipping the decimal point. Now I see that it was actually as high as $735.00/share in 1997. Wow! It probably isn't going to get that high.

[seward]

So am I, but I'm not sure if it will ever reach my original purchase price of 350/share. OTOH, I averaged down a few times.

hans

[MikeDDKing]

I'm quite confident that FKWL will see considerably more than $3.50/share.

[seward]

Yes but will we see 350 a share again?

[MikeDDKing]

FKWL is my largest holding and I think has great odds of being a multi-bagger. Here is why:

1. FKWL reported EPS of $0.17 on much higher margins. The higher margins are due to the fact that they brought product development in house. They did this by buying a controlling interest in another company. At $2.85/share the price is cheap based upon quarterly EPS of $0.17.

2. Their only competitor at Sprint for their u600 USB 3G/4G modems disappeared at the end of 2010 or the first day or two of 2011. This information is not well known. The lack of a competitor for USB 3G/4G modems at Sprint should cause revenue to increase going forward. My understanding is that Sprint is their largest customer. Also, Sprint has been highlighting FKWL's u600 on their home page (see "Get more zip" in the middle of the page).
http://www.sprint.com

3. They have many new products that are either available now or will be available shortly. This will increase revenue and provide diversification particularly in LTE which significantly broadens their customer base. Here are press releases for some of the new products:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=59870604
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=59870627
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=59844365
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=60069096
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=60069167

4. I think they will return to near their old revenue level with just the u600. With the higher margins, earnings should increase dramatically from the current level. Also, new products should increase revenue above the old levels and further increase earnings.

5. Diluted EPS is understated due to the buyback of additional shares from C-Motech that is in progress.

6. FKWL has a stellar balance sheet with a book value of $1.46/share and cash of $1.32/share.

[seward]

I was looking at broadband options and i saw franklin hardware. wow! from a penny stock with little going on for years. didn't they get down to one employee, no office, nada? be nice to see a resurgence.

Not that I'm counting on it, but this is the stock casino, anything can happen.

hans

[Rawnoc]

FKWL has double digits written all over it IMO. Here's why:

(1) FKWL is a cash cow that's debt free making money hand over fist with EPS that makes the current price extremely cheap IMO.

(2) FKWL sells the only 3G/4G modem by Sprint, recently discontinuing a competitor to FKWL:
http://tinyurl.com/4cxnyyb

(3) Their profit margins are jumped so huge in the last couple of quarters much more bottom line net income EPS with even half the sales as before which means even small increases in sales can find their way to the bottom line very quickly.

(4) FKWL has been buying a large amount of shares back in two private transactions further reducing the share count which is already low and further increasing the forward EPS materially.

[MikeDDKing]

The u301 is sold at Comcast:

http://www.comcast.com/Corporate/Learn/xfinity/4G3GDevice.html

[MikeDDKing]

Note that the u600 which is featured at Sprint is FKWL's hottest selling product. I'm just posting some links showing where some of their other products are sold.

[MikeDDKing]

The following carriers sell the Franklin U210 Data Card:

Cellular South - https://www.cellularsouth.com/cscommerce/static/products/phones/prod22400057/Franklin+Wireless+U210+Data+Card.html

Etex - http://www.etex.net/wireless-accessories/franklin-wireless-u210-modem/flypage.tpl.html

Golden State Cellular - http://www.goldenstatecellular.com/cellular_store/ecom-prodshow/franklin_U210_usb_modem_no_contract.html

Mobi PCS - http://www.mobipcs.com/hele/product_details.php?id=38

Frawg Wireless - http://frawgwireless.com/phones/franklin/franklinu210.php

[MikeDDKing]

The Franklin R526 Hotspot is available at the following carriers:

Cellcom - http://www.cellcom.com/phone.html?phoneid=141

Illinois Valley Cellular - http://www.ivcel.com/spec%20Franklin%20r526.html

Golden State Cellular - http://www.goldenstatecellular.com/cellular_store/ecom-prodshow/franklin_R526.html

Carolina West Wireless - http://www.carolinawest.com/mobile-internet/

[enumia]

Well this flag is nice and tight, am in. we will see