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Beer and Clothing; Two American Essentials for Beacon (BEAC)

Hot off the presses- Beacon Enterprises announced today it has landed two new contracts, and updated its backlog. Onwards and upwards.

I don't know if there's two greater American staples- Beer and Clothes. If you drink too much beer, you're going to need new clothes to match your ever expanding waistline. I knew there was a relationship in there somewhere.

More seriously- BEAC made an announcement today, and disclosed a major clothing chain hired them for $400,000. Also included in the release was news of a new contract with a "marketer of beer and other beverages in the United States". This one is only valued at $120,000, and falls in Q2 of this year.

Of course, the most important news to shareholders is the current backlog: $60 million is the current backlog. "Current Backlog" is defined by the company as the amount of signed contractual revenues the company will receive over the next 1 to 3 years.

With only a hair over 30 million I&O, I just don't see how this stock doesn't roll onto higher levels. It is going to, and the next move should take the stock over the previous high at $1.56. I wouldn't be surprised to see it happen in the next week or two.

The surge from two weeks ago which blew out the previous resistance has beet met with the inevitable pull back as short term profit takers exited.

The 61.8% retracement was right on the $1.24 number, which is right where the stock went before bouncing. We're probably looking at $1.75 for the next surge, and then my $2 price target a surge or two down the road.

Considering the size of their outstanding contracts, and the nature of their customers, higher levels just seem inevitable to me.

Here is today's release for your review:

Beacon Enterprise Solutions Announces Two New Engagements with Consumer Companies

-- Projected Value of Contract Backlog Increases to Over $60 Million --

Press Release Source: Beacon Enterprise Solutions Group, Inc. On Monday March 8, 2010, 10:45 am EST

LOUISVILLE, Ky.--(BUSINESS WIRE)--Beacon Enterprise Solutions Group, Inc. (OTCBB: BEAC - News), an emerging global leader in the design, implementation and management of high performance Information Technology Systems (“ITS”) infrastructure solutions, announces two new engagements with consumer companies.

The first engagement is with one of the world’s largest specialty apparel retailers, for whom Beacon performed site surveys and detailed radio frequency (“RF”) analysis on two large distribution center campuses in the United States in May 2009. The new engagement covers two of the retailer’s new distribution centers, one in Canada and the other in the United Kingdom, where Beacon will be responsible for the customer’s RF wireless infrastructure, including assessment, design and implementation. Work on this project is scheduled to begin in March 2010. The value of this engagement is approximately $400,000.

The second engagement is with a new customer, a leading producer and marketer of beer and other beverage products in the United States. The engagement, which was completed in February, required Beacon to perform a network assessment, design and installation in one of the customer’s manufacturing facilities located in the Midwest. The value of this engagement is approximately $120,000 and will be included in fiscal 2010, second quarter results.

Bruce Widener, Chief Executive Officer of Beacon Enterprise Solutions, said, “These engagements represent two elements of Beacon’s growth strategy, which includes expanding the scope of our relationships with existing clients and signing new clients. Agreements such as these contribute to our Projected Value of Contract Backlog (as defined below) of over $60 million, and we are well on our way to reaching our goals for fiscal 2010 and beyond. We look forward to broadening our business with our existing global client base, demonstrating our capabilities to new clients, and affecting acquisitions that complement our business.”

The Company has posted a new presentation on its website, in accordance with Reg. FD, that will be given to potential institutional investors during upcoming road shows. The presentation addresses the Company’s current business strategy, its global ITS infrastructure service offerings, future plans for growth and historical increases in quarterly sales and assets. The presentation can be viewed on the Investor Relations page of the Company’s website at www.askbeacon.com.

Projected Value of Contract Backlog (“Backlog”) reflects the projected revenue impact of existing engagements over a one to three year period and is subject to change as work is completed and/or the scope of various engagements changes over time. Backlog includes the projected value of recently announced, multi-year ITS managed services engagements as well as short-term projects for which the Company has been engaged to provide network design, engineering, implementation and/or project management services.

About Beacon Enterprise Solutions Group, Inc.

Beacon Enterprise Solutions Group is an emerging global leader in the design, implementation and management of high performance Information Technology Systems (“ITS”) infrastructure solutions. Beacon offers fully integrated, turnkey IT infrastructure solutions capable of fully servicing the largest companies in the world as they increasingly outsource to reduce costs while optimizing critical IT design and infrastructure management. Through an integrated team approach, Beacon offers a broad range of products and services including IT infrastructure design, implementation and management, application development and voice/data/security system integration, installation and maintenance. Beacon’s client roster includes state and local agencies, educational institutions, and over 4,000 companies ranging in size from mid-sized companies to the Fortune 500. Beacon is headquartered in Louisville, Ky., with regional headquarters in Dublin, Ireland and Zurich, Switzerland and personnel located throughout the United States and Europe.

For comprehensive investor relations material, including fact sheets, research reports, interviews and video, please follow the appropriate link: Investor Relations Portal, Investor Fact Sheet, Research Report and CEO Overview Video

For additional information, please visit Beacon’s corporate website: www.askbeacon.com

This press contains “forward-looking statements.” Expressions of future goals and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements may include, without limitation, statements about our market opportunity, strategies, competition, expected activities and expenditures as we pursue our business plan. Although we believe that the expectations reflected in any forward-looking statements are reasonable, we cannot predict the effect that market conditions, customer acceptance of products, regulatory issues, competitive factors, or other business circumstances and factors described in our filings with the Securities and Exchange Commission may have on our results. The company undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this press release.

Contact:

Beacon Enterprise Solutions Group, Inc.
Bruce Widener, CEO
502-657-3507
investors@askbeacon.com
or
Porter, LeVay & Rose, Inc.
Marlon Nurse, V.P. – Investor Relations
212-564-4700
or
Trilogy Capital Partners
Darren Minton, Executive Vice President
800-592-6067