Momentum Players

[nvidiaforgames]

$PRHL Strong post-merger outlook:

On May 31, 2016 PRHL issued an investor update which outlined robust growth projections for 2016E -2018E. The projections assume the consummation of its proposed power supplier acquisition, which has not closed as of this note. In the announcement, CEO Randall Letcavage stated that the deal could significantly augment the revenues generated by the company's TPC subsidiary as it sells deregulated power –perhaps raising the financial impact to PRHL by as much as "ten times" with higher profit potential of 2-3x as well. Specifically, PRHL sees revenue rising substantially in 2016E, and management stated that it expects 2016E to be the third consecutive year of double-digit revenue increases. For 2017E management projected revenues of $40mn, growing to $95mn in 2017E as the company shifts sales over to its supplier.