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For many weeks now, I've been focused on Falken Industries Ltd OTC : FLKI as a way to get the highest return for an investment or trading dollar. And, it's been an undeniable success... FLKI is up about 666% from the entry point for many investors, and shot up 896% to make CNN Money's number 1 "Best Performing Stock" list before giving up about half its gain to short term traders who have been having a heyday given the stock's high volatility and yet stable bid and ask trading the stock heavy in the mid 20 cents. The stock closed at last sight at 32 cents. I maintain my position that the stock will best its major resistance level of 73 cents this year. Given the strong fundamentals, new product development, and extraordinary success of its brand concepts, it's just a short matter of time before things explode to the upside. Fundamentally the company is worth in my view at least $ 4-5 dollars a share on a valuation basis. With a present market cap of about $ 25 million, buying FLKI is a very cheap way indeed to get in to this multi-billion dollar market. While there is nothing to dislike about FLKI's fundamentals for the intermediate term investor, FLKI is providing short term traders with a paradise. Taking the golden rule of 120% of the highest bid, the target entry point for a short term trader should be 24 cents. Everyone should put 5-10.000 shares in their portfolios. The stock is swinging back and forth and just readying itself for a bust out to its last point, the 50 cent level. Let's not mince words here - FLKI is a star of its industry, sitting atop a 7 billion dollar market with a catalogue of more than 160 product conceptions and more awards for innovation than could fit in a large barn. Its products concepts are distributed worldwide through a network of more than 380 distributors. But that's not the point : FLKI product conceptions will very soon be available throughout the United States and Canada. FLKI research and development is the envy of competitors - and I should know, I have been an Industry Analyst for 25 years and have followed FLKI since its beginning in 1997. It plays a leadership role in the development of chemical and wet wipe solutions for the consumer, professional and industrial environment. Its products have found their way in the military and civil defense, and, for example its most recent technology addresses Swine Flu prevention. The opportunity FLKI investors can tap isn't limited to that either. The company primary revenue stream is in the Euro. With predictions for the dollar to crash - the press is full of it - the purchase of FLKI common stock represents a major hedge against a drop in the dollar at the least, and an immediate 50% profit at inception based on the current exchange rate. Three new product conceptions to be introduced at the Equip'Auto trade show in Paris this October by The Clean Plus© Product Group in Europe target the products of two Fortune 500 companies with a better performing and less expensive solution. The present body-shop professional market is worth about $1 billion each year. Given FLKI's strong distribution relationships for its concepts, and the tested and confirmed better performance and price point, these additions are certain to gain a percentage of that market. Management predicts at least $ 12 million in sales of these three products next year. Clearly though, even a very small sliver of that pie could reap relatively huge rewards.
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