Through recent acquisitions and the landing of numerous business contracts over the past few months, Premier Alliance Group (PIMO) is looking to make a significant move in the advisory and consulting arena.
As such, Premier has secured the foundations of swift growth, having already signed deals with high-profile clients that include the US Department of Defense (DOD), multiple municipalities in Southern California, and, according to a recent company presentation, blue chips such as Exxon (XOM), Coca-Cola (KO), AIG (AIG) and Bank of America (BAC).
Since late last year Premier has been attracting an increasing flow of attention from investors, which has led to a nice increase in trading volume. For the months leading into late February of this year, trading has been relatively stagnant, with a hearty "0" being listed under daily trading averages roughly half of the time. Since that period in time, however, volume has picked up, although not yet to the fluid levels that would enable the PIMO stock to ultimately turn the corner in terms of consistency and fluidity.
With that said, a recent spurt in relevant news flow has had another immediate effect on trading volume and and has underlined the potential of the company to achieve hefty growth in just a short period of time.
As outlined previously, Premier - through its GreenHouse division - is benefiting greatly by its growing reputation of providing expert advisory services in regards to increased regulation from Washington and the subsequent conservation of energy by lower levels of government and other big and small businesses.
Premier made early headway in providing Southern California municipalities with the necessary skills and advice to comply with the demands of Southern California Edison's (SCE) Automated Demand Response (Auto-DR) program, which allows those municipalities to enjoy notable monetary savings at a time when all levels of government are cutting back on a large scale.
Early last week the most recent of such deals was announced, with Premier revealing that it would provide GreenHouse's expert services to an Orange County, California municipality. This deal follows numerous similar and the announcement resulted in share price rebound to over seventy cents on a solid volume boost. Prices have since declined from those levels, but the new investor interest has not. Volume continues to flow in and Premier followed up the Orange County announcement with one stating that the company is prepared to take on more business after the California Public Utility Commission authorized a budget of nearly $450 million for "Demand Response activities" through 2014.
Of that number, approximately $192 million will be slated for Pacific Gas and Electric (PG&E), $196 million for Southern California Edison (SCE), and $66 million for San Diego Gas and Electric (SDG&E).
With GreenHouse already established as an expert in the arena with a proven track record, it's fair to assume that a chunk of that money will end up being directed at Premier, whose services will be requested in the planning and implementation phases of the program.
Also of note, according to a Premier press release this week, "Greenhouse was chosen by Seaboard Solar LLC, of Danbury, Ct. to Engineer, Procure and Construct (EPC) $3.1 million in solar projects."
Of significance from this release were the encouraging words from Prime Solutionas CEO, William May, who stated that, "This is the perfect next step in our relationship and is just the precursor of what's to come."
Continued collaboration in deals such as this one translates into consistent potential for revenue growth.
Additionally, Stuart Longman, Owner of Seaboard Solar, added, "We're very excited to see these projects coming to fruition. Premier and Prime Solutions are delivering a complete turn-key solution and we look forward to many more developments in the coming months."
It's been well over two months since PIMO's trading volume has started to look a lot more fluid and the trend could continue with the recent news flow and potential for the GreenHouse division to continue to expand into the implementation of the California Public Utility Commission's decision to increase funding for the Automated Demand Response programs of Southern California.
Having enough money in the bank to last for the better part of the next twelve months and an infrastructure already in place to sustain operations as a $100 million company, Premier could still be on the ground floor of growth.
Disclosure: Long PIMO.
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