THE END OF THE CRISIS comes at the end of a Tunnel it never entered or experienced - 4Q projected to increase more than 30%. OTC : FLKI
The 4th Q for this international leader in the industry is predicted to best 30% with significant further increase in global market share.
Falken Industries Ltd will trump the industry once again with its counter-cyclical and crisis unfriendly results. With his usual buoyant look, Manuel Garcia, Communications Officer for the company, announced in a telephone conference to the industry that estimates of sales for FLKI product concepts will be significantly better than the third quarter, which closed up nearly 30%.
The 4th quarter is also predicted to improve global market share in a meaningful way. FLKI product concepts have been quickly filling the voids created by over priced and over extended competitors, many of which are abandoning markets or withdrawing support for their distributors. FLKI distributors report a substantial increase in customer growth and global inquiries for distribution of FLKI product concepts have grown exponentially to near 180 per month.
Breaking from his radiant smile, Garcia added: "Numbers aren’t everything. The evolution of the distribution network who take from producers product conceptions to the retail markets, is significantly improved by FLKI's extraordinary marketing and sales support and the flow down to consumers has kept retail prices with comfortable margins while maintaining a large price advantage over the competition.
"We continue to believe that the emphasis of distributors has to stay on market share. We have achieved our objectives for capacity, production, quality, and logistic excellence. We consider the price advantage component a material benefit for our current strategy of enhancing market share and are very aware of the windfall possibility for us to enhance margins and profits through eventual and minor price increases which would still leave our competition significantly more expensive.” added Garcia.
As previously announced, FLKI believes that it has benefited from the crisis. It's hedging, raw material management, and logistics have given it substantial advantages over others in the trade. This support is available to all purveyors of FLKI product concepts, giving them market advantages unattainable by other distributors.
"We have excelled in containing our cost, hedging our currency risk and providing cover for producers and distributors of our concepts. Our raw material procurement has permitted us an enviable position and realized production costs savings of up to 30% over our competitors without impacting on margins" concluded Garcia.
FLKI also took the opportunity to confirm advancement in its substantial projects in Russia and Turkey where it plans to expand its strategic alliances and establish distribution platforms in support of those currently positioned in both countries.
When pressed about continuing rumors that FLKI may be the target of an acquisition, or formulating a strategic alliance with a significant well known company, Garcia responded :”It is the position of the company that it will neither confirm nor deny the existence of such talks with any party, outside the normal course of business and at this time.”
Try reading between those lines ! As I’ve stated before, I have followed the company since 1997, its position has always been one of fundamentals, displaying little interest for stock market traders per se. However it has always exhibited a keen and consistent concern for a long term strategy “intended to enhance the positions of our shareholders”.
Given its product and distribution advantage (its distribution network is probably worth $ 30 million to a large US company) and its currently incredibly depressed stock - yet up 950% from its crisis tanking low at current levels, make its market cap barely $ 20 million making the company a steal up to .73 cents.
The big guys are awake on this one. I think it’s worth a look.
Falken Industries Ltd OTC : FLKI is a diversified industrial conglomerate that operates in Chemicals, Wet Wipe and Biodegradable Technology. Falken Industries Ltd is the concept behind more than 160 products distributed through a network of global platforms and the recipient of trade awards for innovations, biodegradability and environmental and health quality standards. |
