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Our New Pick Is…
Premier Holding Corp. (symbol: PRHL)
Hello Trader,
Deregulated power has grown by about $30 billion annually since it started to take off in the US back in the mid-90s and we’ve discovered an undervalued opportunity that can provide you with potentially strong upside in the near term.
PRHL has so far completed over 200,000 residential contracts in the three years since entering the space. These contracts, according to a recent release from PRHL, have been valued in the marketplace from $60 million to $80 million if placed with the supplier.
These massive numbers are the reason PRHL recently issued robust financial projections for the fiscal year. Traders are definitely paying attention to this player in a space that is worth over $180 billion.
PRHL has been given a ‘Buy’ rating by Barchart.com and at .06 (current entry at writing), the play is offering up sizable upside opportunities to its 12-month high of .09.
Volatility levels are rising so now is a very good time to check out PRHL and see what this trade has to offer.
Company Website: http://prhlcorp.com/
Technicals
Chart: http://stockcharts.com/h-sc/ui?s=PRHL
PRHL is trading with rising daily volatility, a signal perhaps that investors are very much in step with the company’s latest financial projections.
PRHL has a RSI of 59 which confirms its upward momentum and also that the play is still in a position to deliver greater gain potential over the near term.
PRHL has also surpassed its 50 DMA of .0576. It’s also surpassed its 200 DMA of .0639 which is bullish confirmation that the play is moving north.
PRHL recently rallied as high as 19% on volume of over 700K. The breakout trading is a huge catalyst for further short term action.
PRHL Announces Strong Financial Projections
PRHL recently announced that its new power supplier completes the foundation for its growth strategy in the deregulated power industry.
Currently, the company generates revenue from commissions on the resale of deregulated power. The company has completed over 200,000 residential equivalent contracts since the acquisition by PRHL three years ago, and these contracts have been valued in the market from $60,000,000 to $80,000,000 or more if placed with the supplier.
PRHL said that it will now be offering power through its own supplier, as well as from over 30 other suppliers in the market, providing the best choices for its customers. The company anticipates that a small percent of its immediate sales will be sold through its own supplier through the remainder of the year, increasing to over 50% in the coming years.
The resale of power could generate over $5,000,000 in revenue for the company's 2016 fiscal/calendar year (The third year in a row of double digit increases), and with only 6 months remaining in this year, the company expects to generate another $3,000,000 in topline revenue from this supplier as it ramps up.
With the existing sales infrastructure the revenue from the supplier is projected to increase to over $40 million in 2017, and $95 million in 2018.
US Deregulated Power Market Growing At An Alarming Rate
Although the retail power markets started to deregulate in 1978, the tiny state of Rhode Island was the first state to offer retail choice in 1997. The REP market has since quietly amassed scale as 15 states have joined the cause with much of the activity in the past five years.
Texas proved to be a chief contributor to the success of the REP market when, in 2002, the state implemented a bill for retail competition for all customers served by investor-owned utilities. Furthermore, the Public Utility Commission of Texas approved new deregulation rules in 2004 and 2010, bringing the Texas market to $35 billion in competitive sales.
Over just the past ten years, the existing U.S. market for competitive electricity has grown an estimated $30 billion (now reaching the $180 billion plateau), and U.S. competitive power sales are only expected to increase, projecting as much as 10% in 2011. Few industries of this size have remained “under the radar” for so long – but that era has finally ended.
Research: http://www.otcmarkets.com/stock/PRHL/quote
Start your research on PRHL now.
Able Trader
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