One of the advantages of an analyst’s existence, and notably in the Automobile After-Market Industry where I have existed for the last 25 years, is the ability to get the scuttle-but right from the source, and to call a winner by its name.
Falken Industries Ltd and its globally known car care product concepts is such a company. You’ll remember this company by its symbol and because it made the list recently on CNN Money as “Best Performing Stock”. Well I shouldn’t, but I will anyway: I told you so and have been doing it since the stock was barely a nickel and trading on volumes generated from the cash in Grandma’s cookie jar.
The price per share rose nicely, 896% to be exact, and the stock is incredibly cheap at these levels - easy to say for a guy like me that knows the company having followed it and the primary purveyor of its wares the Clean Plus© Product Group since 1997. They’re by the hundreds I’d estimate, the ones that seized the opportunity for a profitable trade or two. But the stock is a hold it’s a double bagger as they say. Giving way to massive profit taking, the stock is holding well, and providing a chance at an even lower starting price, this is a chance for bigger gain!
Why am I so bullish on this company? First of all, FLKI is dedicated to reducing all that in its industry ails the world. It has a barn full of ecological award winning products and is a world leader in both chemical and wet wipe innovation. True to form they have held steadfast to a conservative policy of prioritizing quality and capacity over sales. Today, with those components well covered it is looking favorably on sales - multi million dollar high end profitable sales for uniquely performing products. The world economy is proving no handicap for this savvy company: it reported a near 30% increase in sales with more favorable projections for the future and its no wonder. In the fall it is launching three new products directly targeting the markets of two Fortune 500 behemoths, management reports it believes that its fall strategy is expected to generate 12 million dollars in sales for 2010. But there’s more;
* FLKI is continuing the development of one of the fastest growing distribution network in the world and, starting next year the U.S.
* FLKI through independent product groups, is rapidly expanding Super Distribution platforms in key markets, facilitating the reach and availability of its products to end-users.
* FLKI is a time tested developer of award winning innovative eco friendly products - bar none.
To top it all off, the stocks performance is showing a bottom at present levels between 30 and 40 cents, this after coming off a run past 50 cents from 5 cents a few months ago. It has pulled back because of massive profit taking but is holding its base of support at 40 cents. It has held this base for several days on very satisfactory volumes. The company is setting up for a MAJOR breakout of the 200 MA line at .39. If that is broken to the upside, then .52 and .73 are up next for possible resistance levels. The good news doesn’t stop there! The MACD line is moving UP while the price trades sideways. As the guru’s will confirm time and again this could mean a very powerful uptrend coming! FLKI could explode at any given moment.
In conclusion, FLKI has strong fundamentals. It is an uncontested global leader for innovative eco-friendly product conceptions distributed throughout the world and in a sector that has strong potential for immediate and intermediate gain.
Accumulating the stock up to 65 cents is a no-brainer strategy.
