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Business is tough, I see it everywhere in the market place, but the more I meander within the industry the more I return, at great risk of more badgering from my critic, to the fundamentals – strong research and development, leadership in product conceptions, broad distribution including platforms in proximity of markets, a focus to the future notably beyond the next quarter, and concern for shareholders – deep concern – the kind that builds value, real value overtime to the frustration of short term traders. Yet, short term traders have little to complain about. Earlier this year FLKI shot up 896% to enrich traders all the way down to a 390% increase. The share has bottom at the .19 cent area and is trading sideways – technical highlights however show a breakout to .194, then recently to .197. Every body I talk to agrees, this thing is going straight to the mid .50 cents, then to .73 cents for its first resistance level, and through that all the way to $ 1,18 its second resistance point. All indicia point to Falken Industries, OTC : FLKI. If only its management’s business were that of short term traders, it could lavish wealth all over on a house of cards. Instead, since 1997, it has concerned itself with good solid fundamentals and building its credibility in the industry. I like that. Its product conceptions are repeated winners of industry recognition and awards and industry gurus know that the company is hoarding at least a couple hundred innovative products in the barn – millions of dollars in sales and net revenues. “These are hard assets“ said Manuel Garcia communications officer. “Millions in raw value which build more value as we evolve each product into its own time: look at our timing and success with the “Brilliance” products launched recently. We had that group in development for at least three years. We sat on them until the timing was perfect. Today we expect over 20 million in sales and better than 8 million in revenue” for the purveyors of our conceptions added Garcia. “Brilliance” is a line of paint refraction products which was initially designed to the target market share held by two major Fortune 500 companies. A market worth $168 million. FLKI had originally projected 12 million in sales with 4 million in revenues. However, with a product which is demonstrably better performing, and considerably less expensive, the professional industry sought and found more in FLKI’s other professional product concepts. Sales of the “Pro” line have exploded and are projected to increase exponentially. “Brilliance” in effect boot strapped the entire line to the forefront of body shop, detailing, car wash, and restoration businesses. It’s better performance and more attractive pricing (up to 46%) did the rest. The strategy was brilliant! The company has a remarkable sense for timing. I have been following the company since 1997, and it has no qualm about sacrificing immediate sales and earnings while it plans its brilliantly executed launches. In this ever changing marketplace where hygiene for example is one of the most important factors we face, FLKI product conceptions provide a clear cutting edge advantage. The products are different, notably its wipes are stronger and meet all Food Contact Clearance and latest EU regulations. EU standards are infinitely tougher than US standards so that FLKI products can easily and presently be commercialized in the US and in North America in general. Yet, the company continues to keep to its outlined strategy for the North American Market – strategy that has been often discussed in articles and press releases owing to its known ability to implant and sell into some of the world’s largest retailers in North America. FLKI wipes of all kinds are uncontested world leaders. Sold and best known under the Clean Plus® Product Group, wipes are available for hand care, surface care and disinfection, degreasing, and essentially all applications. This is unique in the industry where a wipe product will rather tend to be offered as an after-thought, a loss leader or as a pacifier for a demanding client. FLKI wipes are particularly known for their ability to ensure optimal cleanliness as well as safety - plus great absorption capacity, efficient dirt pick-up, strength, and safety across a wide gamut of demand. The company recently sponsored and ran a colloquy for the industry and industry press. More than 200 attended the event with a good 25% competitors. The event was at the recent International Trade Show in Paris. No contest FLKI the leadership model – strangely enough, or perhaps simply telling, many of the competitors and press indicated they were “substantial shareholders” in FLKI. I guess that’s one way to hedge your bet in a meaningful and intelligent way. Should we all ? At .19 – 21 cents even an analyst can afford 5000 shares !
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