Worth Reading. Timely Stock Information Rated Strong BUY OTC : FLKI !
Falken Industries Ltd. (FLKI) engages in the design, development, manufacture, and commercialization of high end chemicals and impregnated wipe solutions for industrial, professional and consumer uses.
The company's products compete in three primary product segments:
* Industrial, from degreasers, to disinfection with customers including industrial giants, government and military
* Professional, from high end compounds, to nano-polishes, with customers ranging from chain car washes to trucking wash centers
* Consumer, present in hundreds of retail shops, notably gas stations, two lines are offered a Premium High End Line and a Classic line for price sensitive markets.
Reasons FLKI has a competitive edge
According to information readily available in public forums and recent filings there are several factors that give FLKI a competitive advantage in its target markets.
For starters, the company’s research and manufacturing base is in Europe in an important traffic center. “We believe the location of our production units makes the purchase of raw materials and sales of our products very convenient and reduces the costs associated with sales while reducing freight costs." Said Manuel Garcia, the company’s communication officer.
FLKI has also developed products that "meet all of Europe’s stringent standards, which is a direct entry point to the North American market since those standards mostly exceed US requirements. “Due to our strict technical standards and quality control in the production process, our product conceptions have become well-known brands in their markets throughout the world."
Another advantage FLKI has is competitive pricing. The company's products feature a cost and price advantage arising from its independently owned intellectual property, extensive hedging programs, and efficiencies. In 2011 the company performed 100% delivery in time and quantum, 98.4% of the time, the best in the industry. Projections for 2012 are to improve on that.
For example, FLKI's consumer products are typically sold 25-40% under the price of its largest competitors (3M’s Meguiars®, Sonax, Clorox’Armor All®, AutoGlym, Turtle Wax®, Formula 1 to name but a few) which offer comparable products. In the professional and industrial area the advantage is equaled or exceeded. “As a result, we believe such products will continue to gain market share and be instrumental in improving FLKI’s competitive position and brand influence" continued Garcia.
And finally, FLKI has long-term relationship with key laboratories and intellectual teams, which contribute to the company's growing expertise and reputation in the field of integrated chemical and wipe manufacture. "In addition, we have an experienced team of in-house technicians which contributes to our product's technical content and ultimately, our core competitiveness," added Garcia.
The trademark Clean Plus® helps FLKI compete in a "fierce market"
FLKI and the product groups operating distribution of its product conceptions are regularly honored with recognition for its branded products. FLKI owns a large number of intellectual properties.
The Clean Plus® trademark for example "represents a comprehensive recognition" by the industry worldwide, of FLKI's "market, quality, efficiency and development and fully proves the market acceptance of Clean Plus® branded products, simultaneously improving the company's intangible assets and bolstering its ability to compete in the even increasingly fierce market" a recent press release stated.
"For many years, the company has operated with a focus on honesty and credit, constantly increasing investment in technical improvements and aiming to both create a famous brand and form a good image. The company attaches great importance to intensifying the public identification of the enterprise and consolidating the influence of famous brands both in the corporate operating ideology and system and also the corporate image construction." Garcia said.
Could 2012 be a breakout year for FLKI?
I THINK SO – SO SHOULD YOU
Trading at 30% of its book value with EPS of 45% The Stock is in my view a STONG BUY
And true to historical performance two swing trades so far this year with 100%+
To learn more about the company, visit: falkenltd.com
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