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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Wink who wrote (2631)	12/4/1997 8:43:00 AM
From: Bob Davis	Respond to of 78634

Marlton Technologies (AMEX:MTY) is a financially strong and rapidly growing Company, which has just announced the latest in a long series of strong quarterly results, and a key acquisition which could accelerate its growth and carry it to $100 million in revenues by 1998. To quote the press release announcing MTY's third quarter financial results, "Operating profit rose to $406,925 for the third quarter of 1997 as compared to $212,221, an increase of 90%. While earnings per share on net income of $322,021 was $0.06 as compared to net income of $163,478 or $0.03 per share, an increase of 100%. The Company also noted that its backlog at the end of the third quarter was more than double the prior year's backlog." MTY has been on a rapid growth track for several years, yet its stock is still undervalued by the market. While the Business Services segment currently has a PE multiple of 36, MTY is at a PE of 20 although its profits are growing three times as rapidly as those of the segment as a whole. On Thursday, June 26th MTY announced its planned acquisition of DMS Store Fixtures, one of the larger companies in this segment. The Napeague Letter has carried out a preliminary Analysis of this deal which indicates that it may be quite beneficial to MTY shareholders. These two businesses are quite similar in many ways and should lead to a strong partnership. They both use similar technologies and skill bases, and many of their products are quite similar. DMS could provide MTY with entry into an industry with strong growth opportunities, and MTY can provide DMS with greater geographic distribution. Marlton Technologies, Inc.(AMEX:MTY)custom designs and manufactures sophisticated trade show exhibits, displays, architectural and museum interiors, graphics and signage, and provides trade show services under the name "Sparks Exhibits". An in-depth Analysis of MTY can be found on the Napeague Web Site at napeague.com. I encourage you to read the entire Analysis as well as the Company's investor relations information and its reports to the Securities & Exchange Commission prior to making any decision to invest in this or any other Company. NOTICE This analysis is based on publicly-available information, and is in no way warranted by me as to accuracy or completeness. I do not guarantee to advise you as to any change in this information. I currently am a stockholder in this Company and may from time to time purchase or sell this Company's securities. I otherwise have no affiliation with this Company, and I am not compensated by it in any way whatsoever.