| 29.04.08 | 15:52:18 |
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| 200.000 | 1.600 | 1,256 Mio. | 10.045 |
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| 29.04.08 | 15:52:18 |
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| 200.000 | 1.600 | 1,256 Mio. | 10.045 |
Powell Industries (NasdaqGS: POWL) brought about $2.5M worth of sales through Marmion’s doors in 2007 and holds the potential to make that seem like a drop in the bucket in years to come.
If Marmion can continue to diversify its product offering and increase manufacturing capacity, the emerging HVAC provider should be able to grow right along with its biggest customer for the foreseeable future.
MMO: Plenty of Room To Grow with Top Customer
POWL has nearly doubled their annual revenue since 2005, reaching $564M in 2007.
The company is currently segmented into two groups: Electrical Power Products and Process Control Systems. The former, which according to the company's annual report logged $546.1M in 2007, the lion's share of corporate revenues, serves a deep base of customers in Marmion's core target market making the two entities a perfect match.
"operators of oil and gas pipelines, refineries, petrochemical plants, and electrical power generators; public and private utilities; operators of co-generation facilities; mining/metals companies, pulp and paper plants operators, transportation systems operators, and governmental agencies and other industrial customers" Yahoo Finance, Business Summary
Although expanding and diversifying the customer base is a key strategic goal of the company, since Powell does bring in more than $500M a year in sales, MMIO can clearly benefit from a deeper relationship with its top customer going forward.
Volume Trending Up on Light News.
In regards to the stock (3 month chart above and to the right), volume has been trending upwards in recent weeks, as well as the average closing price. With Q1 financial reports due out just around the corner and a new facility being built, the market finally appears to be growing increasingly aware of and receptive to the company.
With record revenues exceeding $6M for 2007, MMIO appears to have broken a number of critical barriers to success for many HVAC industry hopefuls. A few of the key barriers that I have come across in my journeys include:
Time in the industry: Management contends and a number of sources confirm to some extent that many HVAC contractors fail within the first 3 years of operations. Stats that I’ve come across note that 17% of SIC 1711 companies fail within 1 year. By that benchmark, the company has progressed to a critical point.
Here is an interesting, yet not the best cited, article on HVAC industry failure rates:
Experience: According Frost and Sullivan “utilities, refineries, and industrial end users continue to prefer companies, which have had substantial experience in the NOx control equipment markets”. With proven capabilities in this regard, MMIO benefits greatly from its position as an experienced provider.
Sheer Size: According to the article above: Economic Census data reveals that in 2001, the overall industry closure rate among payroll contractors was 10%. However, contractors with one to four employees experienced a closure rate of 14% and half of payroll employers had one to four employees. Just over 25% of all payroll employers had more than 10 employees, putting MMIO in the same class of the Powell’s of the world.
A growing customer base that includes a number of Fortune 500 companies and big names such as ConocoPhillips and Lucite. If the company's products are good enough for this echelon of clientele, they should be good enough for any petrochemical company worldwide.
Flexibility and ability to quickly respond to market demand with new and innovative products: The Company’s new Stallion product line was developed for instances in which industrial real estate is limited. In addition, the company's custom fabrication capabilities allow it to execute product runs of all sizes. Many of their bigger competitors set minimum limits on custom jobs, which to my knowledge bring in a higher profit margin for MMIO in comparison to many other offerings.
Improved operating efficiencies: The new facility being built now is expected to help cut costs on some offerings by as much as 20-30% from what I’ve heard. The recent 10K reveals that Net loss for the 2007 fiscal year was ($3,174,967) for an improvement of 54.4% or $3,780,398 from ($6,955,365) in 2006. So, clearly, the company is becoming much more efficient.
Labels: Marmion Industries, Marmion Industries Corp., MMIO, MMIO and HVAC
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This week could prove to be a pivotal one for the folks at Marmion Industries Corporation (OTCBB: MMIO).
Corporate executives are reportedly attending world's largest offshore oil technology conference in conjunction with their first ever major advertising campaign. Marmion is currently running an ad for its new Stallion product line in Offshore Magazine, which is being given away to each of the estimated +70,000 attendees.
The gathering should present an ideal networking opportunity for the company and a chance to garner increased brand recognition in the petrochemical industry. With a new, larger manufacturing facility being built, MMIO appears eager to pursue new business and prepare to take advantage of its expanded capabilities.
Shares are up 12.5% to $.0135 as of 11:49 EST today on volume of 1.4M.
It will be very interesting to see if we test $.015 in the coming hours. Another surge of high volume like we saw earlier this morning could push the stock higher, but trading in the stock has slowed a bit.
Interest in MMIO is surely growing throughout the micro-cap market as positive news continues to flow.
Given the current activity of the stock, those still potentially holding shares from March's 52-week lows will be closely evaluating their investments in the very near future, if they have not already, and deciding what to do with their positions.
Will they take a healthy profit in the sub .015 range, or hang on for a push higher? I'll be watching closely over the next few hours.
Labels: Houston and Marmion, Marmion and HVAC, Marmion Industries, MMIO
According to Offshore Magazine: "The 2008 Offshore Technology Conference attendance was 75,092, report organizers. This tally is up 11% from last year".
In my opinion this is promising for Marmion Industries Corp. (OTCBB: MMIO). The company recently initiated its first ever concerted sales & marketing program and recognized the event as a unique opportunity to introduce a new line of industrial climate control products.
They then purchased ad space in Offshore Magazine, which was reportedly distributed, free-of-charge, to all interested attendees. As I mentioned previously, MMIO reps were also in attendance at the show to follow up with any potential inquiries as well as network with interested parties.
For a company that has relied on word of mouth thus far to drive growth, the conference is a major step in the right direction. The implications for Marmion are huge here if just one long-standing relationship is forged. Particularly since MMIO did rely on only 3 customers to generate 64% of revenues in fiscal '07, with Powell Industries accounting for a lofty 28%.
Labels: Marmion and HVAC, Marmion Industries, Marmion Industries Corp., Offshore Magazine, Offshore Technology Conference, OTC 08
According to this article: "SICK BUILDING SYNDROME has been recognised by the World Health Organisation and symptoms include eye, nose and throat irritation, headaches and dizziness.The Health And Safety Executive say causes probably include poor ventilation, high temperatures and poor lighting".
Now gaining increased traction within the commercial sector of the HVAC industry, Marmion Industries Corp. (OTCBB: MMIO) could benefit greatly from exploring opportunities related to replacing the thousand of outdated systems plaguing office buildings throughout the country. I've read that an outdated HVAC system can waste as much as 40% of the energy it generates, so MMIO has a great deal to gain if they can leverage their recent success in educational facilities into the establishment of contracts in a wider variety of installation environments including office buildings, retail, etc.
Labels: Marmion Industries, Marmion Industries Corp., MMIO, MMIO and HVAC, OTCBB:MMIO
According to their recent 2007 annual filing, Marmion Industries Corp. (OTCBB: MMIO), has recently expanded into the Louisiana petrochemical marketplace. Already benefiting greatly from a thriving niche position in Houston, the "energy capital of the world", MMIO has grown annual revenues steadily since 2002 while significantly improving its bottom line.
With a new facility now being built that will simply let the company build more product than ever before, Marmion should be able to meet new demand for its offering brought on by the company taking on another major sales territory.
From the filing:“Our long-term plans for growth include continued expansion of our industrial base into Louisiana. We have obtained the necessary licenses in Louisiana and during the first quarter of 2008 we received our first orders from customers in Louisiana.”
Marmion Enters Another MAJOR market:
Including offshore production, Louisiana is the number one producer of crude oil and the number two producer of natural gas among the 50 states. The oil & gas industry is a giant economic engine for Louisiana's economy, supporting $70.2 billion in sales for Louisiana firms (Louisiana Mid-Continent Study, 2007).
Labels: Houston and Marmion, Marmion and HVAC, Marmion Industries, Marmion Industries Corp., MMIO, OTCBB:MMIO
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| Wertung | Antworten | Thema | Verfasser | letzter Verfasser | letzter Beitrag | |
| 4 | 248 | MMIO Reboundchance 100% kurzfristig | sts091280 | Offflyns | 17.12.11 17:28 | |
| 8 | 1.324 | Ein möglicher Gewinner 2006 Marmion! | NoRiskNoFun | MöchtegernBroker | 28.08.08 13:12 | |
| 2 | 10 | Verdacht auf sehr guten Kursgewinn | 999Taucher | hassiaoli | 15.03.07 14:05 | |
| MARMION + 39% in USA in D noch unter Pari | Cohen | 30.08.06 12:12 | ||||
| 14 | Marmion Inds | Skydust | MöchtegernBroker | 22.08.06 20:23 |