Whereas the industry must play catch up, this compWhereas the industry must play catch up, this company continues its uninterrupted motoring through world wide markets. OTC : FLKI
The blathering nabobs of negativism are ignoring the facts – the important facts.
Pessimism in the Automobile Industry, let alone the Automobile After-market industry has controlled emotions for all of 2009. The gurus on both sides are all holding to the theory that nothing will work. It can’t work. Well they’re wrong, and couldn’t be more wrong. While traders, notably the one’s who call themselves “day traders” (and I don’t mean the professionals of the trade) are a demonstrative case and classic example of throwing good money after bad, it has become a foregone conclusion that these individuals are in the game not for the gain, but for the high – how else can you define someone making repeated bets 1080 / 1 against him?
But there is an exception to all this gloom and doom. A small company very much in that industry, that has been making industry news since its inception in 1997.
This company has been plotting, fiddling and concentrating on the fundamentals of its business. Do you remember a time when publicly listed companies were more worried about their products than their quarterly filings? Well here is an example, this small company barely $ 30 million in market cap, has clobbered giants and established itself as a formidable global player with its product conceptions distributed world wide. Just Google FLKI you’ll see plenty to wonder about. “The company‘s success has been better than we expected, in fact than anyone in this industry expected” said Manuel Garcia, communications officer.
Skeptics are now focused on the why’s of the company’s relative unknown status with the investment banking industry. With more than 4000 shareholders; there never fail to be one to remind management that its disengagement with the promotion and public awareness of its stock is contributing to the grossly undervalued share price of barely 20 cents.
While not a day trader’s paradise, the company historically caters to swing traders and intermediate investors. Traditionally it provides 2 to 3 swing trades each year, last year 3, yielding 890%, 390%, and 40% - and now has seemingly bottomed on what will be its first swing trade for 2010. Project a price? Sure I will. I project a bounce over the next two to three months breaking its last established swing high of 19 cents and all the way through to 23 cents – that would complete the first swing trade for 2010.
The entrepreneurial management is fiercely independent and known for its seeming disinterest for pursuing let alone cooperating with its regular mega-bucks suitors. But with rumors tossing about prices of near $ 3 per share for how long? This is a company that has sacrificed nothing for the betterment of shareholders, delivering a 1900% return for those on board in the last 52 weeks.
This notwithstanding impatience remains. This is not a short term day trade. The fundamentals are fabulous – and I should know, as I have been an analyst in the Automobile After-Market Industry for the last 26 years. I have covered this little company since its birth in Trenton in 1997. Success is on the way for disheartened short term traders, even volume and pretty charts will come. This is strongly suggested by readily available data, and it all will happen sooner than one thinks because at last, the company has announced the creation of a public awareness cell within its communication department.
It’s too late for FLKI competitors to recapture market share lost to the company’s aggressive implantations. In fact it’s simply much cheaper to take the company out, buy it and buy it cheap on a deal which I would speculate can be done for between $ 2-3 per share. Less for a sizeable portion in fact, because there is no controlling block, and a large increasing float. It should be no major problem acquiring 10-15% at under or just above a dollar with much of it at present undervalued levels.
Fourth quarter figures are expected to be announced on February 15 +/- with major news thereafter so says the scuttlebutt in the industry. Reportedly a significant increase in sales will be announced. With the economy improving and the four steps of market recoveries rolling along, demand will pick up. This will have a major impact on FLKI, but little to show for its publicly traded behemoth competitors whose car care subsidiaries have little to offer to counter FLKI award winning product conceptions and therefore to the managerial requirements of quarterly reporting.
We’re in the fourth step right now, but whereas the industry must play catch up, FLKI continues its uninterrupted motoring through world wide markets.
The industry with rare exceptions such as the one depicted above has suffered this economic contraction with a darkened mood. Much of its pain self inflicted. Prognosticators have been spectacularly behind the curve. Oops, since the unforeseen debacles of 2008, existential angst has led forecasters to err on the side of bearishness. Combine ennui with a tendency to extrapolate existing trend lines in the future and gloom begets gloom.
Nothing of the sorts can be found in the executive offices of FLKI where management radiates a mysterious enthusiasm. Something is cooking, and a quick Google search of FLKI may suggest the cause for the absence of pessimism. For the press covering this company, it has become an article of faith that it will continue to lead the industry globally. With an admitted more than 160 products in the pipeline and enough awards to wall paper a warehouse it is not a difficult assumption. It follows that the company’s policies can spell only success and that with a capital S.
Falken Industries Ltd OTC : FLKI is a diversified industrial conglomerate that operates in Chemicals, Wet Wipe and Biodegradable Technology. Falken Industries Ltd is the concept behind more than 160 products distributed through a network of global platforms and the recipient of trade awards for innovations, biodegradability and environmental and health quality standards.