Ive been following this company since 1997 and it has been interesting to watch it grow from an idea to an internationally respected corporation, a leader in the industry.
Management notwithstanding the publicly traded status of the company has always managed to keep itself below the radar, that is, until late last year faced with an unfriendly bid for control, it could no longer do so.
It amazes me how stock traders of todays chat rooms and message boards can display such incredible disregard for the basics, foremost among these, the short term acumen and patience necessary to a great winner. In the case of FLKI, you could smell the sizzle for the last year. Everything was obvious, but like a baby wanting it now, they let the golden egg dissipate out of their avaricious pockets to fill those of the more patient of their acolytes. Its the beauty of this game of course that theyll or at least some of them will have a chance to get back in, late but in time for a worthwhile return.
I concluded long ago, that for these folks, money doesnt seem to be the primary motive, most lose money all of the time; its the adrenaline rush of a quick in and out that does it for them. I have written a number of articles on the subject.
The current tale will undoubtedly remind you of another tale, that of the hare and the turtle, how much plotting however does a stock investor need when the news is good, the earnings and prospects growing, the fundamentals scream yes and the charts rate the stock buy buy buy. Let the stock stand still a while, let it go back and forth, give it the time to rise to its proper level. Well for these amazing traders, you guessed it, if its not now, and I mean now, they dump it, feeding volatility, lavishing commission income upon the brokers, and perpetuating a syndrome that ensures extravagant losses.
Stocks like people need time to rest and consolidate.
Well there were and remain plenty of astute investors with their pockets wide open to purchase the stock at half the price these impatient traders laid out for the privilege of ownership. Theyre there buying of course because of whats to come and it takes no investment genius to figure it out.
FLKIs decision to commence the process for up-listing to a more senior market is fueled by the well reported rapid progress in its portfolio of high end product development, by the rapid expansion of its global distribution network, and by time and again witnessed, the growing world-wide interest in its Eco Pledge Standard for a Green, earth friendly production of biodegradable products. And yes let me say it now ahead of the naysayers, possibly as a management defensive technique against an unwanted bid for control even at the hefty price of $ 1;50 for newly issued shares (diluted value about 55 cents by my best count). But so what the end result is a massive improvement in the value of the stock whichever way it goes, and as for me let me stay with tested and enthused management any day.
As any good due diligence will prove, Falken Industries Ltd (OTC:FLKI) stands for solid gains in global implantations of its product conceptions and for growing global interest in the Company’s exceptional biodegradable product mixes, including products, notably wipes for disinfection and degreasing, designed for rescue teams, the military, and general utilities. Moreover it is apparent to all who take the time, and management shares the opinion, that FLKI substantially meets the requirements to up-list to a more senior U.S. stock exchange.
In fact, FLKIs Advisory Board approved steps that would initiate a reverse stock split as early as this year, if needed, to meet minimum stock price requirements of the senior U.S. stock exchanges and is establishing audit, compensation and nominating committees in advance of a planned up-listing. Nothing light about that news.
It makes sense, moving to a senior U.S. exchange should be a high priority for the company given the progress of its business interest, the demand upon its product conceptions, the major expansion of its distribution network, and its industry leadership and growing global interest in its Eco Pledge unique standard for ensuring Green products. Listing on a more senior U.S. exchange will assuredly in my view help increase visibility for the company and help attract a broader class of institutional investors. That stands for value building for shareholders.
I remember reporting on the vociferous shareholder demands presented at last years shareholder meeting. The company took the hint and direction of its 4,200+ shareholders. For the first time in a decade it initiated an effort to devote resources to investor awareness. That also will translate to value building for shareholders.
Clean Plus products, FLKIs most popular branded line of 160+ product conceptions, include disinfection and cleansing wipes tailored to crisis and disaster rescue teams, and notably to military applications, and products to purify brackish water. Custom wipes allow military and rescue personnel to ensure health and cleanliness while essentially eliminating the need for water in parts of the world devastated by intense drought conditions Iraq, Afghanistan any one?
So lets call it a spade, FLKI is not a sub-penny stocks that may trade on the hype of the morning call only to crash (there is a reason for the statistic that day traders loses on more than 88% of their trades). Lets give a hoorah for the short and intermediate term investors that have the stamina, the intelligence and the good sense to make an investment and stick to it for at least as long as the news and performance is positive ; as for me, front and center my example herein, Im buying up to 13 cents and riding happy for the rest.
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.