Good early morning all. As promised in yesterday's edition, we've got a new idea for you today we believe has enormous potential. As many of you already know, we've been very successful in recent months providing you with new ideas that have yielded more than stellar returns on more than just a few occasions. Our biggest wins have had two very common denominators... fundamental and technical appeal. In other words, there were significant positive changes or fundamental developments with those companies AND their charts looked very ripe for entry. We brought you VirnetX (VHC), Rite Aid (RAD) and VocalTec (CALL) just to name a few... all of which we think fit the same profile as today's new idea which appears to be no exception. We're giving you an opportunity and first look at Premier Alliance Group, Inc. (PIMO) before we launch it as a Featured Stock on the site after the close today. I think Premier Alliance Group is going to start getting a lot of positive attention and you know how I feel about these situations. The best time to get involved with the right small cap idea is to get in before the rest of the small cap world finds out about it. There are a lot of things I really like about PIMO but that's the only challenge today, so I'm going to give you a fairly basic understanding of the Company, a quick look at the chart and let the rest of the SmallCap Network Staff and Members elaborate on their value proposition in the coming days and weeks ahead. Premier Alliance Group - Doing Everything Most Small Caps Should Premier Alliance Group, Inc. (PIMO) is an idea that was introduced to us by a successful Wall Street Corporate Communications Firm. While the SmallCap Network primarily focuses on the digital side of the small cap world, this particular Firm is on the ground, on the Street and has a lot of very good connections to some very powerful players in the small cap space. The old expression, "It's who you know", couldn't ring more true than it does on the Street. And, it appears PIMO has not yet really hit the radar screens of fund managers and the rest of the retail investing world. That's not all that gets us excited though. Once we started digging into PIMO's financials, business model and growth plans, this particular idea became a no brainer for us. The Company reported $19M in revenue on its most recent 10K. They reported a cash on hand balance of roughly $4M and here's the kicker... there's roughly 23M shares out and PIMO currently trades around $.75 cents per share. Seriously? Yes. Do the digging yourself and you'll see what we see. Their numbers equate to a current market cap of roughly $17.2M which puts shares of PIMO trading at less than one times sales. Additionally, if their current cash position is still intact, PIMO is only trading at four times its cash on hand. If that's not enough and if I'm not mistaken, the Company has never reported negative EBITDA in any of its previous 10K filings. I challenge you to find other companies that fit this same criteria. There's no guessing here. It is what it is. It's No Wonder The Numbers Are So Good Once we started looking into what Premier Alliance Group does, we realized there's a reason why they boast an impressive cap table, balance sheet and other financials. The Company is a leading provider of business and technology advisory and consulting services. Their practicing areas of expertise encompass governance, risk & compliance (GRC), business performance & technology, and finance & accounting as they assist clients with risk management, compliance, mergers & acquisitions, organizational effectiveness, project/program management, information management, architecture and software development. Bingo. They're a nice sized rapidly growing Consulting Firm focusing on the hottest of sectors, including energy efficiency and sustainability, government compliance, healthcare and technology. I guess if you're going to become a successful consulting firm in this day and age, you better be practicing what you preach... and it appears PIMO is doing just that. Rather than list every aspect of consulting the Company engages, I've included an image providing a breakdown of their professional services here. This gives you a very good idea of the various sectors of the market that the company is involved. The Company also boasts a laundry list of impressive clientele including; Duke Energy, AIG, Capital One, Amgen, Boeing, Coca Cola, Siemens, Shell and Exxon. I could go on and on but the bottom line is Premier's Client list is virtually endless with impressive multinational household names. The simple question one can ask is, "If these highly successful multi-billion dollar corporations are hiring Premier Alliance Group, what does that say about the Company's knowledge base of expertise and their ability to add value to large enterprise on a consulting basis?" I'd say they're adding some serious value and they're getting paid very well to do it. Growth Through Acquisition Although it appears the Company has and can successfully grow their business organically, they make it very clear they are always on the lookout for good strategic acquisition opportunities. I listened to an interesting webcast interview from CEO, Mark Elliott, who shared some insight that the Company has a healthy pipeline of acquisition targets and is always on the lookout for the right opportunities. Again, since the Company provides M&A consulting services, one would think this is another area they would have a tremendous amount of expertise. Case in point, the Company recently entered into a merger agreement with GreenHouse Holdings, Inc. Under the agreement, GreenHouse merged with a newly formed subsidiary of Premier and became a wholly owned subsidiary of Premier. The basic terms of the agreement were as follows... the exchange ratio of shares of Premier Alliance for shares of GreenHouse was calculated to be 0.13954 of a Premier Alliance share for one GreenHouse share. In total Premier is issuing 7,114,315 shares of common stock, 1,334,667 of which will be held in escrow until the achievement of certain operation goals and in connection with certain indemnification obligations of GreenHouse. What that means in Layman's terms is a good number of those shares issued will be held in escrow until certain revenue milestones are met, thus mitigating the potential risk associated with the merger. Smart move. I believe the strategy behind the GreenHouse merger was to create a larger footprint in the green energy space where there exists tremendous opportunities in helping companies create better energy efficiencies, in addition to helping companies succeed in the sustainable and renewable energy space. This merger would also give Premier the ability to leverage and cross sell existing GreenHouse relationships in the space to further exploit larger revenue possibilities for Premier and its growth proposition. If You Want to Succeed, Surround Yourself With Success I would imagine a large part of PIMO's success to date has everything to do with who is involved. From their Operational Management Team to their Board of Directors, these guys have a very impressive list of key individuals for various reasons. And, if their current Team wasn't enough, the Company came out on the open yesterday and announced that Harvey Pitt, former Chairman of the Securities Exchange Commission ("SEC"), has been added to their Board of Directors. If you're going to help public companies at various stages of growth and compliance, there's literally no better guy to have on your board than him. It speaks volumes for this Company and where it's headed. Here's a quick overview of their current High Level Operational Team and their Board of Directors. I'm sure you'll be just as impressed. Mark Elliott, CEO - Over 28 years of business and technology focused experience spanning the financial, retail, consulting and government sectors, including time at Fortune 500 companies. Graeme Booth, President over Professional Services - Over 30 years of experience gained across a variety of industries including financial services, technology, manufacturing, and professional services. His unique experience includes partnership within the Big 4, regulatory and supervisory experience, as well as Chief Executive Officer experience in the technology sector. John Galt, President over Professional Solutions - Over 20 years of experience gained across a variety of industries and positions in energy efficiency, sustainable building, and the security and intelligence sectors. Founded the Galt corporation, a development company that worked on over 100 projects nationwide in relation to real estate, energy efficiency or sustainable solutions retrofits. Sits on the Board of Naval Special Warfare Family Foundation is a certified Green Building Professional and a member of the U.S. Green Building Council. Larry Brumfield, CFO - Over 30 years of diversified financial, accounting and consulting experience, both in industry and in the Big 4 accounting firms. Previously, CFO, Secretary and Treasurer of Blue Rhino Corporation. Director and manager in the Corporate Finance Group at Coopers & Lybrand (now PricewaterhouseCoopers) where he participated in numerous transactions (IPO's and follow on offerings). Issac Blech, Board Member - Mr. Blech has founded some of the leading biotechnology companies in the world including Celgene Corporation, ICOS Corporation, Nova Pharmaceutical Corporation, Pathogenesis Corporation and Genetics Systems Corporation. Patrick M. Kolenik, Board Member - Mr. Kolenik has over 40 years of securities industry experience encompassing supervisory, banking and sales responsibilities. For 22 years Mr. Kolenik was employed by Sherwood Securities/National Discount Brokerage LLC, a FINRA member firm which operated as a full service investment bank specializing in trading and corporate finance. Mr. Kolenik served as head trader, Vice President of Retail Sales, Vice President of Corporate Finance and Executive Vice President of Trading before becoming the CEO and a member of the Board of Directors. Kevin Carnahan, Boar Member - Mr. Carnahan has worked for three decades in the consulting industry. Previously, Mr. Carnahan led a series of profit and loss groups for Accenture internationally, including overseeing the Systems Integration business as well as holding a variety of other operational management roles for Accenture. Cary W. Sucoff, Board Member - Mr. Sucoff has over 28 years of securities industry experience encompassing supervisory, banking and sales responsibilities. Since February 2006 he has owned and operated Equity Source Partners, LLC, a FINRA member firm operating as a boutique investment bank. He currently serves on the Board of Directors of Contrafect Corp., Cerecor Inc., BillMyParents, Inc. and American Roadside Burgers, Inc. He has been a member of the Board of Trustees of New England Law/Boston for over 20 years and is the current Chairman of the Endowment Committee. Comparing Apples to Apples If you go back and see the PIMO's recent string of PR, you're going to find them winning. Winning contract after contract, so I think it's safe to assume that in many instances they're beating the Big Boy Consulting Firms at their own game. I bring this up because although Consulting Firms don't normally attract quite the attention that extremely popular consumer stocks do, don't be mistaken, the returns can be ridiculous. Just because you buy a Motorola cell phone doesn't mean the stock is going up and conversely if you have no need for high level consulting services, doesn't mean there isn't a lot of money to be made in the space by strategically investing in the right ideas. Many investors don't realize IBM generates a very large portion of their revenue on a yearly basis through their various consulting arms and that is one stock that held up as well as any during the 2008 meltdown. It has also provided long-term investors with retirement type returns. Just for my own curiosty, I started looking for some comps and ended up with my wide eyes open thinking PIMO looks even better now. After reviewing a number of publicly traded consulting groups, I realized that they have some of the best balance sheets in the public sector. Many, if not all, of the Company's I reviewed had very similar financial landscapes, strong balance sheets, excellent revenue growth and very impressive bottom lines. There was only one exception, all of the companies I compared had already grown to enormous levels and it was already reflected in the stock price. PIMO presents an early-stage opportunity to get in on the ground floor of a Company that has not only already shown they can execute but are at a pivotal growth point to take advantage of the infrastructure they have created to handle $100M in revenue. Even if the stock continued to trade at one times sales and the Company achieves that $100M revenue milestone in short order (through organic or growth through acquisition), that would put a price target on the stock of roughly $3.50 per share which would equate to roughly a 400% return. Considering the reward potential and the strength of PIMO's financials, I love this idea. Wrapping it Up As we always do, I've included a daily chart here of PIMO. As you can see, the stock is starting to get some attention and I think this is only the beginning. The stock was as low as $.40 cents per share not that long ago when volume interest started showing up in the stock. Shares of PIMO ran to a high of $1.25 in fairly short order and has since pulled back to a nice 5/8 retracement of that move. For those of you who read our newsletter religiously, you know how much we like this type of retracement, as it often ends up proving an excellent risk/reward entry level. In this day and age when companies big and small are all looking for a competitive advantage, I think the economic landscape puts Premier Alliance Group in the sweet spot to take advantage of massive consulting revenues across all of the hottest sectors; energy, healthcare, technology and financials. Based on where the stock is currently trading, we believe at least 75% returns can be had in fairly short order. When fundamentals and technicals align, it's the deadliest of combinations, and I mean that in a good way. If you're a trader, have it. PIMO looks good right now... but I believe the best value in a stock like this sits with the longer-term investing proposition. There's thousands of small stocks that run the gamut out there and I think we've found a good one here. If you're ever going to take a shot with a stock like this, now's the time... before it hits the radar screens of the masses. As always, be prudent and use protective stops. If the stock starts to move like we think it will, give yourself enough breathing room with trailing stops to keep yourself in the game in the event it wants to go much higher. Thoughts, comments and questions always welcome... Have an excellent day, we'll see you tomorrow and let's go PIMO.