The Japanese expansion will be happening within 3-6 months - at the latest! By mid-2009 every Japanese bedroom needs a smoke alarm to meet regulatory requirements. Right now, almost nobody has a smoke alarm in Japan. For a couple years, the market for smoke alarms worldwide will increase dramatically simply due to the fifth of sixth largest population on the planet being required to install them where they weren't before.
The only question remains, how much of the global expansion can Eyston(the HKJV capture). Forget about Universal Operations - there is nothing exciting coming down the road to boost Universal profits. The real earnings are going to come from the HKJV.
If Eyston can get the regional licenses allowing them to sell and market their smoke alarms within China, this would be a Grand Slam for a stock trading at 14 million dollars. Check on CFSG's market cap for fire and safety products.
I still think at the end of the day the low cost manufacturer will capture the market share, whether in the U. S., China, Japan, etc. These devices are not high technology products requiring highly sophisticated manufacturing procedures. Sooner or later the competition will compete on a price basis and then throw out historic margin percentages and historic profit levels. Prices will drop, profit margins will get squeezed and the low cost producers will be the survivors.
I am not a betting person, but if I was, I would bet earnings and the filing of the December 2007 quarter Form 10-Q will end up being delayed by the Canadian default situation. I hope I am wrong, the last thing this stock needs is another "black cloud" overhanging it. The stock dislikes uncertainty.