The company, Falken Industries Ltd, on the OTC, symbol FLKI is a company that I have followed since 1997. The company never fails to amaze me. Crisis - what crisis I wrote recently, and behold a company that continues to add new business across all markets.
This company is a leading provider of product concepts for the consumer, professional and industrial segments of the chemical and wet wipe industries and with global distribution for auto-care products and chemicals. So far so good, but so what ? Well, today the company announced an expansion of the Company's business relationships, including that with the Clean Plus® Product Group a worldwide leadership brand. Unheard of in the Atuomobile After-Market and just underlining the company's clear dominant position in its markets.
This addition of ten countries and segments extends the services and product concepts of the Company to core market areas and 37 locations closing the gap for greater logistic efficiency and unprecedented economies of scale.
The Company also confirmed a number of other expansions and/or new business interests in the industrial, professional, refining/petrochemical and oil field product, vehicular care and automotive after-market industries.
Manuel Garcia, FLKI's Communications Officer whom I interviewed for this article stated, "We are extremely pleased with the pace of expansion of existing customer relationships into new markets and of new customer signings. In particular, we continue to add business in new markets as the after-market industry increasingly recognizes the value our innovative research and product conceptions and the positive financial impact that they can have on the operating efficiencies and costs of their distribution network. We are further pursuing significant expansions and new business opportunities with a number of large, national providers in the automobile after-market service industries."
Garcia continued, "We are also making significant customer additions to our private label product lines thus increasing our market share and presence."
Garcia concluded, "While our customers continue to be impacted by the current recession and difficult economic time, we are currently experiencing stable demand from our historical customers for our product and brand. Accordingly, we expect that any future improvement in the economy should result in a positive impact on our financial performance beyond the value added by the existing customer expansions and new customer additions we have achieved even in the current environment."
OK, I have 25 years as an analyst in this industry, and I am baffled by this company. It makes all the right moves, at the right times and it has been doing so since 1997. I think it's time to break the piggy bank and buy some stock - as I concluded elsewhere, the company is a steal in my view at any price between 50 and 85 cents. But then, I only have 25 years of living with the industry !
