That is not bad form unless you fly them from a single pole. Signal flags should be flown from the yardarm while the national ensign is flown from the peak. If the mast has a gaff attached and a club burgee is flown, the national ensign should be flown from the gaff and the burgee from the peak. See photo.
Numerous towns along the coast have a permanent display of the town's name in signal flags.
SpyNavy
Garde la Foi, mes amis! Nous nous sommes les sauveurs de la République! Maintenant et Toujours!
(Keep the Faith, my friends! We are the saviors of the Republic! Now and Forever!)
LonePalm, le Républicain du verre cassé (The Broken Glass Republican)