Premier Holding Corp. (PINK:PRHL) Moves on Pumps
After moving down on charts for days, yesterday Premier Holding Corp. (PINK:PRHL) caught a nice 23% boost up, lifted by a round of promotional emails for the stock. Volume for the day was more than five times the average.
After a number of smaller promoters compensated with only $6,250 sent alerts, promoter Research Driven Investor (RDI) got onboard in the evening, sending three alerts to subscribers, this time revealing a heftier compensation of $50 thousand, paid by Add Ventures LLC to promote the stock.
The RDI pump mails talk more about Warren Buffet and his views on the possibilities of deregulated energy production than about the actual performance of PRHL. The pump also quotes some bold press release statements about PRHL‘s hopes to offer products and services to Fortune 500 names. A quick look at PRHL‘s latest quarterly report dated September 2012 may give investors an idea just how close the company is to working with Fortune 500 listed businesses:
- $2 thousand in cash, $1.2 million in goodwill
- $713 thousand in current liabilities
- $81 thousand in revenues for Jan-Sep 2012
- $2.1 million in net loss for Jan-Sep 2012
The recent acquisition of a majority stake in The Power Company USA, LLC announced in a press release by PRHL was said to be paid in both cash and shares. There is no official filing covering the deal yet but one possibility is that the cash in question may be coming from new issuance of common stock for proceeds that happened in January and that diluted PRHL‘s common stock by over 5%. Additionally, as per an 8-K filing from Jan 7, PRHL, through its WePOWER Ecolutions subsidiary, transferred a number of its contracts and property rights to a WEPOWER Eco Corp., a newly formed entity, controlled by a former PRHL CEO. Against the transfer of assets and property rights, PRHL expects to receive the principal amount of $5 million dollars. Towards the end of the document, however, it’s detailed that payments will be made in 180 monthly installments, starting 5 years into the future.
Promoter RDI was previously compensated $30 thousand for a late-2012 promotion of PRHL which he touted as successful, only the promo held the price spike for a day and then went to drop below its pre-pump levels in less than two months. In late January RDI ran a pump job on Global Security Agency, Inc. (PINK:GSAG), touting a price target of $0.11 set by a ‘major analyst’. Even though the stock reached 3 cents per share as the pump kicked in, it tanked almost immediately and is currently 66% down from its pumped highs, at exactly $0.01. RDI pocketed $75 thousand for their advertising efforts on GSAG.
Investors are advised to do their own research and due diligence and never invest in any company solely because Warren Buffet made some general proclamations for a sector that an enterprise is aspiring to be successful in.
