Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Marlin's Retreat Starting To Get Interesting

The market has apparently started turning its back on small caps, and that is likely to produce some long-term values. I think Marlin Business Services (NASDAQ:MRLN) is starting to earn its way onto that list. Marlin is a good play on a small business recovery, and the company's over-capitalized balance sheet and low cost of funds gives management considerable flexibility. I haven't always been so fond of the stocks' valuation, but this 30%-plus pullback from the high is starting to look a little excessive.

Leasing Activity Picking Up

Marlin is in the business of providing equipment lease financing to small businesses. Marlin's average lease receivable has been growing, but at an average size of $14,500, the company is

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
FREESA PRO MEMBERS
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details