The market is not happy, it kicked and moaned most of the time as the news went from bad to worse and people decided to feed up a nasty correction. Everyone is moving to solve the issues which ail the world and this from both sides of our planet. Where's the sensible approach? Lucky for all, I am neither a political analyst nor a guru of any sort preaching one thing or another. I am but a humble industry analyst and cover the most mundane of industries, the Automobile After-Market Industry; but mundane it is no longer. There's money to be made here, and the big one's are handing out both their money and market share to the small industry gems not unlike Falken Industries Ltd, a small company (market cap $ 25 million), brain child of a young Norwegian MBA and traded under symbol FLKI. Very prudently, the company has been making its moves, it launched in 1997, and since its award winning product conceptions have lined the walls of award winners and the shelves of retailers and users globally. The company is responsible for more than 160 products currently in production. Through the thick and the thin this company moves early and has become an industry model at cost controls and in stemming the flow of its liquidities. Free of debt, it nurtures its business and as it names implies, from high beyond, it pinpoints a market and sweeps upon its unsuspecting prey. All too often, the hard won, century old markets of complacent monster sized competitors - but only a little bit will do you for this flexible instrument of creativity. We don't have year ends yet of course but we do have an Internet full of useful information. Just Google "FLKI" (without the quotes) and read on. Management, which tends to be right of Attila the Hun in my humble view, suggest that preliminaries might indicate that sales accelerated 1.9 percent for the month of December - a normally dismal period for that portion of its business dealing with auto-care products, this from 0.6 percent the previous month. My own bet is that sales climbed 10.7 percent in the fourth quarter. For the first time since 1997, FLKI doesn't deny acquisition or merger invitations or interest. It's incredibly creative management doesn't seem to take lightly its fall into major corporate America but the scuttlebutt suggest that at the $3 or $4 a share people are talking, the company is a done deal. Moreover there does not appear to be a controlling block so that astute competitors could quietly finesses at least positions of up to 4.9% (about 392,000 shares - a whopping $ 80,000 at these prices) before they sprang. The stock a basic unknown to the trading community is selling at 20 cents. Let's no forget that FLKI sits with the technology, skill, and purchasing knowhow to tackle a 9.5 billion dollar industrial segment. As I see it, the market's inaction, unwitting ignorance of this opportunity can't last. It is possible because the hapless competitors circling have no possible interest in putting a light on it, and the investment community are too busy licking their wounds or for the smaller part wasting their time on chat rooms. Hapless I say about the competition, because given FLKI's commanding global lead in product conceptions and branding, its is outrageously cheaper for them to buy the company than to try to take back the market share they have lost, let alone acquire FLKI's or that of its collaborators. To me, the market's reaction is pretty entertaining - I'm sitting back watching that time when everyone will rush - the herd is on its way paying dollars for what they could have acquired for pennies today. I'm similarly amused from my reading of chat room commentary crafted by the know it alls who claim all the wrong thing as a prerequisite to a buy. Result a 1080:1 loss ratio. But say they, it's the adrenaline rush that counts. Very prudently, the company has been making its moves, it launched in 1997, and since its award winning product conceptions have lined the walls of award winners
Related Articles -
Car care, car-care, autocare, chemicals, polishes, wax, wipes, wet wipes, clean plus, Lingettes, Nettoyant, Desinfectant, Wipes, Chimie, Degraissan,
|