Premier Power Renewable (OTC BB:PPRW)

We are removing Premier Power from the GeoBargain on the Radar list. The company still lacks profitability.

Premier Power Renew Energy has caught our attention. The company reported higher net income for 2009 vs. 2008 on lower sales. However, company guidance implies revenues will explode to a range of $105-$115 million  in 2010 from $30.8 million 2009.

As usual their is caveat:

"Historically, we have successfully funded the construction of our large scale projects through a combination of debt, equity and vendor partnerships, and this guidance is based on the Company’s ability to continue to do the same in 2010. This is an important and critical piece of us being able to meet this revenue target and our strategic objectives."

So.. dilution and operating margin erosion are issues.  Furthermore, PPRW still finished 2009 with a fourth quarter operating loss. We will place PPRW on the GeoSpecial on the radar list and request an interview.

For 2010, the Company is expecting:

• Revenue of $105-$115 million vs. $30.8 million in 2009.
• Gross margin between 16%-20%.

Historically, we have successfully funded the construction of our large scale projects through a combination of debt, equity and vendor partnerships, and this guidance is based on the Company’s ability to continue to do the same in 2010. This is an important and critical piece of us being able to meet this revenue target and our strategic objectives