Pre-Market Trading Shows Promising Growth
Franklin Wireless Corp.‘s stock (FKWL, -0.32%) experienced a significant surge of 13% during premarket trading on Thursday. The boost is in response to a request made by Sinnet Capital Partners, a 3.2% shareholder of the company, for a special dividend and stock buyback.
Sinnet Capital Advocates for Change
Sinnet Capital has put forth several suggestions for Franklin Wireless Corp. Firstly, they propose a special dividend of $1 per share. Additionally, they recommend executing a $10 million dollar Dutch tender buyback. Lastly, Sinnet Capital suggests that Franklin Wireless should hire an investor relations firm to issue press releases and better communicate their achievements to the investment community.
A Plea for Increased Investor Awareness
In an accompanying letter from Timothy Hasara, representing Sinnet Capital, he notes that despite Franklin Wireless Corp.’s notable accomplishments over the past year, their efforts have not been effectively communicated to investors. The company has failed to issue press releases regarding their acquisitions through any of the commonly used national news services for investor-related news.
Prior Performance Analysis
Prior to the recent developments, Franklin Wireless Corp.’s stock had been experiencing a decline of 30.7% in 2023. In comparison, the Nasdaq had seen a rise of 44.2%.
