FALKEN Statistics suggest now is a time to buy FLKI
Aside from the strong start to this year’s holiday by a strong 3Q (EPS 1 cent or 25% on PPS of 4,5 cents), there are other reasons to be interested in Falken Industries Ltd’ stock trading under symbol FLKI on the OTC.
On a historical basis, Falken’s business, and with progressive better knowledge of the stock by the investment banking community, tends to fare best between October and March, in large part because of its specialty winter products, ie de-icers, anti-freezes etc. and strong presence in frigid markets. Using data compiled since 2000, the best three months for FLKI on an absolute basis are March (+14.7%), November (+13.3%) and May (+ 20.1%), while the worst months are August (-0.8%) and September (-0.6%). Perhaps more importantly, however, is how FLKI’s activities have fared on a relative basis when compared to its competitors - excellent. This is perhaps the best indicator of seasonal interest, and I am convinced that as a result of such activities, 2012 will drum up substantial interest in the stock.
FLKI has indicated in a recent press release that it expects a very good 4Q, and has projected 1Q 2012 figures up 14%. That indicates to me that now is a relatively good time to put some FLKI stock in my portfolio (bearing in mind that past performance is no guarantee of future results – now my a… is covered !) |
