Premier Alliance Group (PIMO)is a strategic advisory and consulting firm providing "Knowledge Based Expertise" across several industries and focused today on two main areas; Energy & Sustainability Solutions and Financial Regulation & Compliance Services.
In its simplest form, Premier Alliance has built a team of energy and financial experts who work closely with Fortune 500 corporations and the U.S. government to improve their operating efficiencies, provide cost saving opportunities and adjust to the ever changing landscape of industry regulation. Both present burgeoning market opportunities. While there is a focus on two specific verticals today, the long term growth strategy seems to include expansion across other industries. Current clients include, Exxon (NYSE:XOM), Boeing (NYSE:BA), Pepsi (NYSE:PEP) and Fluor (NYSE:FLR).
Within the energy division, the Company has carved a leading niche expertise within the Automated Demand Response initiative that many companies are undertaking. According to Southern California Edison's corporate site, "Automated Demand Response (Auto-DR) is a technology and communications platform which enables eligible demand response participants to initiate load shedding strategies throughout their facilities, without requiring manual intervention." Premier Alliance has announced several new contracts implementing Southern California Edison's program which can be found here and here to reference a few.
Another example is Premier Alliance's engagement to work with a large steel manufacturer to assess and manage their energy utilization. After providing a fully integrated energy plan, this steel manufacturer was able to reference real time data that allowed them to manage margins through price adjustments based on fluctuating raw material cost.
In the financial sector, financial regulation such as BASEL III, Dodd/Frank and the International Financial Reporting Standards (IFRS) have presented Premier Alliance with opportunities to make available to corporations their expertise on these movements and adjust their operations accordingly. Premier Alliance recently announced several contracts in the amount of approximately $400,000 focused on Governance, Risk & Compliance and Finance & Accounting services.
The new reality of increased financial regulations over the last several years is now taking hold and forcing corporate America to address these issues and hire experts to ensure they are compliant.
The trailing twelve month revenue totaled $19.2 million and current book value is $18.6 million which compared to its current market value of $11.1 million is what makes PIMO worth evaluating. As Premier Alliance successfully continues to garner traction within the energy space and offer solutions for increasing financial regulation, I am inclined to believe that revenue will continue to grow as will the value of the stock.
Disclosure: I am long PIMO.OB.