NEW YORK, NY / ACCESSWIRE / April 1, 2015 / SeeThruEquity, a leading independent equity research and corporate access firm focused on smallcap and microcap public companies, today announced it has initiated coverage of PRHL Holdings, Inc. (PRHL) with Price Target of $0.69.
The report is available here: PRHL Initiation Report. SeeThruEquity is an approved equity research contributor on Thomson First Call, Capital IQ, FactSet, and Zack's. The report will also be available on these platforms. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.
Although the company was founded in 1971, Premier Holding Corporation took on a new direction with new leadership in October 2012 and in February 2013, purchased 80% of the Power Company ("TPC"). This new direction put PRHL in the deregulated energy space (a $500 billion dollar market) and with this acquisition PRHL picked up thousands of residential energy customers and hundreds of commercial energy customers that now become prospects for Energy Efficiency Experts ("E3"), an energy efficient product and services company and PRHL's first subsidiary. In October 2014, PRHL acquired 85% of Lexington Power & Light ("LP&L"), an energy supplier licensed in New York and licensed with the Federal Energy Regulatory Commission ("FERC"). The combination of these subsidiaries makes Premier an energy holding company focused on the integration and future acquisitions of energy companies as synergistic subsidiaries.
"Experts believe that the deregulated energy business is estimated to be a $500 billion+ industry in the U.S. and is estimated to be 5-7 times larger than the lucrative telecom deregulation market launched in the early 1980's. Today power generation, power reselling and brokerage have emerged as a developing business with enormous market potential. While looking at U.S. energy market by state and regulation status, we find that there are currently 12 states that operate under deregulation but this is poised to increase rapidly in future with other states also starting to adopt some form of deregulation. PRHL's subsidiary, The Power Company, which already has sold 80,000 residential accounts and over 1,500 commercial accounts, is well poised to ride the wave of deregulation energy business," stated Ajay Tandon, CEO of SeeThruEquity. "We are initiating coverage with a 12-month price target of $0.69 per share."
Additional highlights from the report are as follows:
Experienced player targeting a massive opportunity
Deregulated energy market is a multi-billion dollar industry, which presents enormous potential for The Power Company. In February of 2013, PRHL acquired 80% of the Power Company, and since then has grown the number of residential contract sales tenfold. The operations in Chicago represent an outstanding marketing operation which not only includes highly trained call centers and door-to-door sales staff, but the proprietary NEST sales portal which dramatically reduces the time it takes to make a sale and provides all the client information, supplier contract details and compliance requirements which creates a strong differentiation in the market.
Recent acquisition of New York based, FERC licensed Lexington Power & Light (LP&L) to propel near term revenues by synergizing with The Power Company
On October 22, 2014, Premier Holding completed the acquisition of 85% ownership interest of Lexington Power & Light ("LP&L"), an independent energy services company (ESCO) that sells electricity and natural gas to commercial and residential consumers. The acquisition of LP&L will enable PRHL to operate as a supplier of energy in deregulated markets. As a supplier, Premier will book LP&L's energy customer's entire energy supply bill as revenue (estimated to be 8 to 12 times higher than the commission) earned by TPC. Indeed, LP&L had revenues of $9.5mn in fiscal 2013, and $8.6mn during the first nine months of 2014.
Energy Efficiency Experts (E3) a seller of lighting and energy efficiency technologies is poised to create continuous revenue stream by getting customers at zero cost through TPC
PRHL is positioned to benefit from the vertical integration and synergies of the integration of The Power Company ("TPC") with E3, which would enable it to cross-sell its efficiency offerings and services to the captive 2,000 and growing TPC and Lexington commercial accounts. E3 has access to the a large number of suppliers, as well as its own proprietary technology, the E-Series for making the millions of existing and installed HID lamps operate more efficiently.
Proprietary sales portal: NEST offers added competitive advantage
The Power Company's proprietary energy portal "National Energy Services Transactor" or NEST is a scalable, web-based automated sales and compliance tool which reduces the time to make a sale to a matter of minutes. NEST could enable PRHL to expand into the states currently allowing deregulated power and to the remaining states as they deregulate.
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About Premier Holding Corporation
Premier Holding Corporation ("PRHL") is a California based energy holding company focused on acquiring and integrating energy companies as synergistic subsidiaries. The Company is the parent of Lexington Power & Light (LP&L), an energy supplier; The Power Company (“TPC”), a power reseller in deregulated markets; and Energy Efficiency Experts ("E3"), a reseller of energy efficiency technologies. The Company through its subsidiaries offers electricity and gas to consumers in the deregulated energy markets. PRHL accumulates residential and commercial clients in deregulated markets from all subsidiaries and cross sells energy and energy efficiency products and services. In addition, Premier Holding also provides top line management and financial support, which includes access to capital, financing, legal, insurance, mergers, acquisitions, joint ventures and management strategies.
For more information, visit www.prhlcorp.com.
SeeThruEquity is an equity research and corporate access firm focused on companies with less than $1 billion in market capitalization. The research is not paid for and is unbiased. We do not conduct any investment banking or commission based business. We are approved to contribute our research to Thomson One Analytics (First Call), Capital IQ, FactSet, Zacks, and distribute our research to our database of opt-in investors. We also contribute our estimates to Thomson Estimates, the leading estimates platform on Wall Street.
For more information visit www.seethruequity.com.