Liquidity Services (NASDAQ: LQDT) operates online marketplaces for wholesale, surplus and salvage assets (the websites include www.liquidation.com, www.govliquidation.com, www.liquibiz.com and www.goWholesale.com). It's certainly a good business as seen with the fiscal Q4 results.

Revenues increased 30% to $51.7 million, and adjusted EBITDA increased 43% to $5.8 million.

The marketplaces for Liquidity Services are certainly getting lots of traction. For example, there are on average five auction participants per completed transaction (for the year). As seen with eBay (NASDAQ: EBAY), getting qualified buyers is key for growth.

Going into 2008, the company is looking to ramp up volume customers as well as add more services. In fact, the sluggish economy may be a benefit for Liquidity Services, since companies are trying to cut costs.

For Q1, the company expects to post adjusted earnings of 11 cents. And for 2008, the earnings are forecast at 53 cents to 55 cents.

In today's trading, the shares of Liquidity Services are up 27% to $14.

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements. He also operates DealProfiles.com.