PRHL’s Transformative Model Drives Exponential Growth

Investment and Company Research
Opportunity Research
COMPANY UPDATE

It is not often that management teams provide guidance or potential financial metrics from proposed new initiatives. It happened in spades yesterday, with a new press release issued by Premier Holding Corp., (OTCQ – PRHL). Operating in the $500 billion+ deregulated energy industry sector, Premier is thriving and is set to become one of the few vertically integrated energy service providers.

The Company’s extended model leverages its 1,500 commercial accounts and over 40,000 residential accounts with a modified business structure that helps ensure success. To learn more about how revenue could jump from an estimated $50M+ in 2015 to $500M in 2018 as a result of its new, proposed initiative.

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PREMIER HOLDING CORPORATION

PRHL’s Transformative Model Drives Exponential Growthsiness

Rob Goldman
rob@goldmanresearch.com

July 8, 2014
 

PREMIER HOLDING CORPORATION (OTCQB - PRHL - $0.0871)

Price Target: $0.65 Rating: Speculative Buy
 

COMPANY SNAPSHOT

KEY TAKEAWAYS

PRHL is the parent company of its two current subsidiaries The Power Company LLC and Energy Efficiency Experts. PRHL plans to acquire additional companies in energy deregulation and clean technology companies and/or green products and services that are accretive and that can be seamlessly integrated. PRHL offers renewable energy production, energy efficiency products and services to commercial middle-market companies, Fortune 500 brands, and residential customers. Additional integrated business offerings include direct energy services, energy financing, and lighting efficiency systems and refrigeration systems.

 

KEY STATISTICS

 
Price as of 7/7/14 $0.0871  
52 Wk High - Low $0.25 – $0.06  
Est. Shares Outstanding 149M  
Market Capitalization $13M  
3 Mo Avg Vol 112,000  
Exchange: OTC:QB  
 

COMPANY INFORMATION

Premier Holding Corporation
1382 Valencia Avenue
Unit F
Tustin CA 92780
www.PRHLCorp.com

Phone : 949.260.8070
Email: info@PRHLCorp.

Conclusion: As PRHL’s proposed subsidiary edges closer to serving as a federally licensed energy supplier via acquisition or merger, it has become clear that such an event will be transformative for the Company, and would drive exponential revenue and profit growth. Management recently outlined parameters and metrics for its financials once a transaction is executed, and the figures are substantial. As a result, opportunistic investors can take advantage of the tremendous value in these shares ahead of this event, thus potentially generating outsized short term gains.

The Numbers Speak For Themselves

PRHL just announced that it will make available to the public its pro forma financials that demonstrate revenue could grow from an estimated $50+M in 2015 to over $500M in 2018. In this scenario, we believe PRHL could generate over $60M in EBITDA in 2017, once a supplier is operational this year.

From Commissions to “Principal” Revenue

As a supplier through its new subsidiary, Premier could book customers’ entire energy supply bill instead of just the commission earned. The entire supply bill likely ranges 8-12 times more than the current, commission-based revenue. In addition, PRHL could gain the difference between the wholesale and retail cost of energy driving net profit 2-3x higher than under the current structure.

The Stock is a Bargain

In our view, PRHL is a bargain considering the huge growth potential.  Moreover, our $0.65 target only reflects the existing retail business and does not yet include the major benefits of the supplier event. Once that occurs, the stock is likely to be revalued higher as PRHL is classified in a high-growth segment of the utilities category, the top performing sector of the year. We rate these shares Speculative Buy.

For more information, please read or download our detailed Company Report issued on May 12, 2014. http://www.goldmanresearch.com/20140512767/Opportunity-Research/the-next-big-energy-services-player.html 

Recent Trading History For PRHL

(Source: www.Stockta.com)

 

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Senior Analyst: Robert Goldman

Rob Goldman founded Goldman Small Cap Research in 2009 and has over 20 years of investment and company research experience as a senior research analyst and as a portfolio and mutual fund manager. During his tenure as a sell side analyst, Rob was a senior member of Piper Jaffray's Technology and Communications teams. Prior to joining Piper, Rob led Josephthal & Co.'s Washington-based Emerging Growth Research Group. In addition to his sell-side experience Rob served as Chief Investment Officer of a boutique investment management firm and Blue and White Investment Management, where he managed Small Cap Growth portfolios and The Blue and White Fund.

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