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UFP Technologies Inc. (UFPT) Set to Continue Record Profits

This small capital stock from Georgetown, MA has reported an approximate 68% rise in net earnings for 2007 over 2006. Significantly, this profitability jump has come on top of nearly flat sales. The company has made important strategic moves during the first quarter of calendar 2008 to continue the 2007 trend of business progress.

First, the company has acquired a firm specializing in polyurethane foam packaging material. Second, the management has inked a collaboration agreement with a world leader in foam packaging for healthcare and military products. These moves improve the competitive strength of the company. It is engaged in plastic and other fiber packaging systems. The company is known for its technical competence in ensuring the integrity of precious and fragile cargo through secure packaging.

The company has diversified horizontally from packaging into the manufacture of components for automobile interiors, safety equipment, and healthcare aids. This has secured revenue flows for the company, giving it flexibility to participate in multiple industry lines.

The April 2008 market capitalization is just below $58 million. The stock price during this month has climbed to nearly $11 from a 52-week low of $4.45. The Price to Earnings Ratio remains below 15 even after this appreciation. Return on Average Equity has been 19.41% on a Trailing Twelve Months Basis, and the five-year Capital Spending growth rate for this company is more than three times higher than the average for the Containers & Packaging Industry. This is a strong indication of the superior future business prospects for the company.

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