I have been covering the Automobile After-Market for nearly 25 years. It’s a rare gem to find a company like FLKI and profit from the opportunity of the present.
As the markets seem to be giving some up, I have been eyeballing possible buys in my area which have reached support levels. Too many times traders chase companies when their price is at the high, to be thanked with a sudden drop a short period after. The good news is that FLKI has weathered all the bad that I can foresee and has been building a strong base in the 50 c range. The stock looks ready to explode on the upper side at any moment! I sense the next support it will have to get through is at the 85 cent range through 50 c its free sailing.
Just Google FLKI and you’ll see that this a fundamentally great buy ? But traders will be traders so let me go on.
Why is FLKI’s base building important? Well, when the crisis hit, it dragged FLKI stock with it in a massive sell-off. While one of the hardest thing is to predict just how low it will go, I started buying like crazy when for a short period it offered buys at the 5-20 c level – I am still buying and will all the way to 70c : those 5-20 c times are forever gone. Now the question is, when FLKI will decide to bounce through the resistance point of 50 c. It broke through last week, but by a mere .001 which it promptly gave up to close in the high 49.8 c. Simply, having followed the company since 1997 I see this as an extraordinary value - FLKI is simply absurdly under valued. In general I seek stocks that have dropped, bounced and are now trading sideways. This for me is clear confirmation that the profit takers or the sell off is over. I then look for new buying interest ? Nothing could be clearer in the case of FLKI, because it is that buying interest that will drive the stock price back upward and beyond. I feel FLKI fits this scenario perfectly. A drive up to 85c is a near immediate, and a stock in the $ 2 range is a virtual certainty for me given a one year term.
The smart money is preparing their accounts freeing up funds from those dead positions and planning their buys for FLKI. I called the move on FLKI at its bottom, and am doing it again at its current “bottom” of 50 c. Remember, there’s a lot of traders out-there that bought in the 20 c range, so don’t be afraid to put a bid in, a GTC at 35 to 40c might slowly give you a steal from inattentive traders selling “at the market”, but do more, slowly build a position at 50-70 c. You may get a profit taker or careless sell at your lower bid (bid 5000 shares or more if under 50 c or 2500 or more if over 50c so that your bid will show.) Scoop up what you will on your low bids but buy all the way up from 50 c to 70 c. The next resistance point is at 85 c and it will be interesting to see just how quickly FLKI breaks through that - after that the next resistance point is over $ 1.
Author Resource:-
John David is one of the nation’s most respected expert analyst on the Automobile After-Market Industry. He holds appointments as a covering analyst with some of the world’s largest players. He also conducts a private practice as a consultant in capital raises, mergers and acquisitions for small to medium size manufacturers in the consumer, professional and industrial chemical, wipe, wet wipe and car and vehicular care industries.
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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.
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