Hope Rosetta pulls back up - FYI this was posted by Dispatch & News:
“It‘s not every day that investors have an opportunity to capitalize on a strong U.S. Dollar by buying a Euro-based multinational company with impressive financials. Falken Industries Ltd. (FLKI) is a leading global manufacturer and commercialization of high-end specialty cleaning products for industrial, professional and consumer uses.
Under its brand name Clean Plus®, Falken Industries has successfully launched more than 160 professional and consumer auto care products which are sold in over a dozen international markets, including recently signed Australia and Russia. Clean Plus® products are currently available in over 1000 petrol stations and other outlets in Europe.
Key Investor Points
● Falken Industries sales volumes have doubled over the past two years, with continued record growth: Q1 2012 revenues have increased 30% over Q4 2011 along with record profits. ● The company is experiencing impressive expansion, including recent signed agreements with distributors in Norway, Russia, and Australia. ● Clean Plus® products are available in Canada, Ireland, France, Malta, Cyprus, Sweden, Finland, Norway, Iceland, the United Kingdom, Belgium, The Netherlands, Denmark, Greece, Estonia, Romania, and India, where the company contemplates opening another production facility in 2012. ● Falken Industries supplies the global markets of major petrol distributors, including Shell, BP, Q8, Esso, Statoil, Hydro-Texaco, Olis, Agip, and Cepsa.
FLKI is a rare exception: a solid OTC company with real revenue. With a market cap of only $5 million in a $1 billion market for cleaning products, the potential for growth is enormous.
John David, one of the nation’s most respected analysts on the automobile aftermarket industry, describes the company’s fundamentals as “beyond reproach.” Notes David: “Most on the street say it’s a great buy and some have rated Strong Buy,” concluding: “the company at its present quote is, in my view, obviously considerably undervalued.”
Despite record impressive performance and profits, Falcon Industries is trading at a heavy discount: 30 percent of its book value. This anomaly is largely due to the current economic downturn in Europe, which has affected exchange rates between the Dollar and the Euro. Since the company’s financial reports are primarily denominated in Euro, the monetary figures are artificially diminished as a consequence of U.S. Dollar reporting. This has undeservedly fueled investor’s concerns.
Falken management has responded with initiatives designed to capitalize on the weaker Euro and stronger Dollar by expanding into US and Canadian markets. The trade-off is huge, offsetting by far any currency conversion loss. It is only a matter of time before the stock begins to reflect the fact that its products have up to a 50% price advantage over competitors.
All this presents a unique opportunity for investors to buy at an artificially low PPS before the inevitable adjustment of the currency exchange rates reveals the true strengths of this rapidly growing company.”