Marmion Industries Corp. (OTCBB: MMIO) is back on our radar screen this week.

Announcing a purchase order valued in excess of $100,000 recently, MMIO logged more revenues during the first nine month of the year than it did in all of 2006.

But what does the future hold? That seems to be the question that everyone is asking these days.

I believe that things are destined to continue improving from an operational perspective. The company is simply playing in too hot of a market and making too many of the right moves in order to establish itself as a larger competitor not to perform well right now.

From a market perspective on a long-term basis, your guess is probabbly as good as mine. The next few years are certainly a "make or break" period for the company in my opinion as far as share performance is concerned.

The way that I see it, the company's ability to bring annual revenue into the $10 million range over the next two years would be a very bullish sign of what's to come. With plans to break ground on a new facility designed to meet increased demand for Marmion products and sales efforts ramping up to unprecedented levels, the company has a very legitimate shot at expanding.

For a unique play like this - unique in the fact that there aren't too many publicly traded HVAC companies on the OTC Bulletin Board - buyout potential is always a huge upside. I'd guess that the $20-30 million sales range is where an HVAC player such as MMIO begins to become more attractive from an acquisition standpoint.

Although that range is my estimate only, a few more years of steady revenue growth and a strategic acquistion of their own that makes sense could propel Marmion's revenues to the next level.

Obviously there is downside here too. The share price being one. MMIO's small size and a number of other factors that are conveniently outlined in their quarterly filings also create a substantial amount of risk. But we're all here because we have at least a portion of our portfolio dedicated to speculative, high-risk investments.

With the stock now priced in the sub-penny range, current levels could represent a very attractive entry point for those that believe in the business model here and look forward to a bright future for the company. Even if your not 100% convinced yet in the longer term value here, the stock has made some happy subscribers due to its volatility on news days.

Either way, we suggest putting MMIO on your radar screen for the next 6 to 12 months.

Labels: Marmion Industries, Marmion Industries Corp., MMIO, OTCBB:MMIO