With the U.S. economy teetering on the edge of a substantial downturn, we felt it necessary to dig up a few new emerging growth opportunities in markets believed to be recession proof, at least to some extent, that hold the potential to bust you out of that summertime slump. The first of these ideas for the fall months and beyond is Marmion Industries Corp. (OTCBB: MMIO).

Well funded and with three quarters of consecutive revenue growth, MMIO is quickly building a favorable position in the global HVAC industry, both commercially and industrial. HVAC, for those of you unfamiliar with the acronym, stands for Heating, Ventilation and Air Conditioning.
Kepping cool is pretty hot these days

With its business focussed on two key markets (Industrial & Commercial) - MMIO specializes in the design and modification of Explosion-Proof Heating, Ventilation, Cooling Pressurization and chemical filtration solutions for mission-critical applications. From chemical plants to elementary schools, the company's products and services continue to gain increased traction as a direct result of their superior quality.

In a testament to the rapid growth occurring in the company's core markets, The Freedonia Group is projecting World demand for HVAC equipment to rise over 5 percent per year through 2010, exceeding $65 billion. In addition, the International Energy Agency estimates that the total investment required in the oil and gas sectors over the period 2005 to 2030 will amount to more than $8 trillion.

Increasing revenues on the industrial side of the business by approximately 80% during the second quarter in comparison the corresponding time period in '06, MMIO is already cashing in on industry growth while building the brand recognition necessary to further penetrate the burgeoning sector. In regards to future growth, the company's CEO recently stated "Our marketing strategy is to continue to aggressively enter the international marketplace with our products, providing new technology to our current customers in addition to newly acquired customers".

Funding in Place to Support Future Expansion


The $3M in funding recently awarded to MMIO enables the company to push forward with outlined strategic plans to capitalize on the increasing boom in petroleum expansion and infrastructure improvement occurring on a global level. Furthermore, the equity financing allows Marmion Industries to more efficiently approach a higher volume of emerging opportunities, both domestically, and in regions such as Mexico, the Middle East and South America with its robust line of industrial and commercial solutions.

Value-Prop in Many Key Market Segments a Huge Plus

MMIO's line of products and services present a unique value proposition to potential customers across a vast array of industries including, but not limited to Petro-Chemical, Industrial, Agricultural, wastewater, pulp and paper, elect. sust., medicine, and Aerospace. This should be very beneficial for the company going forward as it will be able to "cherry pick" contracts from segments showing the most promise at any given time.

On a very positive note, the company's hazardous location wall mounted air conditioners were recently awarded approval for third party certification through Intertek Testing Services. According to company President, William Marmion, "This approval will allow the Company to bring our products directly into the refineries and various plants throughout the industrial market". With said certification presenting a massive roadblock to other industry competitors - MMIO should be sitting pretty in the petrochemical space, just in time for its massive growth.

Through collaboration with well-entrenched players on both sides of the industry fence including Drymalla Construction, Ltd. of Columbus, Texas - which facilitated Marmion's continued expansion - the company continues to log increasing revenues while building word of mouth exposure, both domestically and abroad.

Inking and Fulfilling Major Contracts

News out of MMIO today notes the successful completion of a $956,990 project at Thompson Elementary School in Houston, TX. While close to one million in revenue may not strike you as anything major right off the bat; it is actually quite significant for the company for a number of reasons. For starters, when you take into consideration the fact that MMIO logged $1.8M worth of revenues during its most recent quarter, a mil on the books is actually pretty big for just one deal.

In addition, today's release proves to investors that the company is delivering on contracts and doing a bang up job at that. While many in the small cap arena tell you about a sizeable contract and never seem to deliver on it, MMIO does the exact opposite. As we always say, one key characteristic that we continuously look for in micro-cap ventures is a management team that states what it is going to do, and follows through with plans to a T. Actually, management one-upped us here since they not only fulfilled their obligation with flying colors, but also came in under budget.

Although obviously MMIO shares represent a significantly high level of risk, even for a small-cap venture due to their low price and possibility for further dilution, it appears that we have reached a bottom here. Reading the press release will tell that the source of income that has exponentially increased revenue is only the beginning of a long line of contracts. With business picking up to unprecedented levels, a run up back to a 52-week high of nearly $.25 is by no means out of the question over the near to mid-term.

Labels: Marmion Industries, Marmion Industries Corp., MMIO