FLKI positioned to capitalize on a multi-billion dollar market
As an analyst for the Automobile After-Market Industry I had the pleasure of covering the world’s largest or second largest professional trade event depending on whom you ask; The Paris International Trade Show Equip’Auto which was held between October 12-18 of this year - and which proved a confirmation of what I have lived and believed since 1997 when I started covering FLKI.
The show’s highlight was the brilliantly executed launch by The Clean Plus© Product Group of FLKI’s latest product conception “Brilliance”. The launch was an overwhelming success - and the flurry amongst the professional press was unmistakable: a winner for an industry that has been chomping at the bit to get some proof that it will rise above its comatose state.
More than 800 persons registered for the different “Brilliance” presentations of the conception. The product as expected met the prerequisites of the European Innovation Award, but the unmistakable truth was that attendance of the Product Group’s stand where the FLKI product conceptions were on display exceeded the attendance of all other stands present at the show. No bells or whistles yet they came - many from far away places in the Orient, Asia, Africa, South America and New Zealand to name just a few!
Manuel Garcia, Communications Officer opened the press conference with a reminder of what untold multiple awards and successes have long established for this company: “FLKI focuses on providing research and conceptions leading to the development of innovative products that perform at worse equal to and more often better than any targeted competing product and which will retail at 25 to 40% less than products it expects to replace.”
In many cases, FLKI product conceptions simply have no competition.
FLKI product conceptions are currently distributed throughout the world in large retail chains, supermarket chains and large regional multinational retailers. It’s “Premium” conceptions are present in specialty shops, auto centers, and thousands of gas stations. Currently FLKI is focusing substantial resources and attention in the fastest growing markets notably the BRIC.
FLKI has a barn full of successful product conceptions to its credit and a couple hundred in the pipeline. It’s most ambitious project of late is the “Brilliance” professional product conception which targets a market largely held by two major fortune 500 companies and worth an estimated $ 170 million. FLKI’s projects with the acknowledgment of my colleagues of the cloth that the 5 “Brilliance” products in and of themselves, will generate better than $ 12 million in distribution revenues and in excess of $ 4 million in operating profits in 2010.
Overall the market for currently available FLKI product conceptions is worth over $18 billion dollars and FLKI’s recent change in strategic focus (see its press releases) puts it squarely in position to tap into a monstrous revenue steam.
It doesn’t take much to see that this company’s ability to focus its research and product development is well placed. Sales of its product conceptions are increasing on average 28% per quarter for this year and this amid recession and economic crisis. That communicates a simple but pointed message. An increasing amount of people are becoming performance and price conscious (even in the professional area where performance held a tight priority whatever the price) and are switching from overpriced larger established brands - which plays right into the hands of FLKI product conceptions.
Asked about the US retail markets, Garcia ever so guarded as one in the midst of rumors would have it, indicated that while talks and a tactical plan is well advanced, that the US strategy will likely be pursued by an acquisition or Strategic Alliance. Garcia reminded the audience that “America has been the golden land for small entrepreneurs which are the foundation end-users of FLKI product conceptions. However the US currently has one of the smallest small-business sectors among developed nations, and its self employment rate is lower than that in all countries except Luxembourg.”
A quick investigation revealed that Garcia was ever so on point. The US self employment rate is 7.2%, that’s five times lower than in Greece and Italy which have the highest self-employment rates. Only 11% of US manufacturing businesses are small firms, the third lowest rate among developed nations. In research and development only 25% are small firms, the third lowest rate among developed nations. All of a sudden I perused recent press releases by FLKI and noted the one announcing a significant shift in strategic planning announcing FLKI’s decision to pursue acquisitions for its North American development. In sum FLKI has the strategy correct. Continue to expand its unequaled strengths overseas, and strike alliances or acquisitions for the United States.
Quite obviously it helps to have a business denominated in the Euro rather than the dollar – acquisitions will be 40% less expensive, and shareholders get an extra kicker when they purchase shares, hedging the dollar picking up a 40% bonus in the process.
Technically speaking FLKI’s common stock, after rising 896% to over 50 cents earlier this year, has hit bottom with a bang trading sideways for the last two or three weeks and holding at between 19 and 20 cents on declining volume, testimony of the exhaustion of profit taking rushes. That bottom has been confirmed and one can feel the breakout - next stop in the 50 cent area, but no real resistance until 73 cents.
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. |
