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GRSR --> $5.86 target (solar power)

Ludlow Capital Maintains A- Rating on GiraSolar (GRSR), Split Adjusts Price Target to $5.86 a Share

NEW YORK--May 03, 2006--Ludlow Capital maintained their rating on GiraSolar (OTC: GRSR) at A-, but has adjusted their 6 month price target to $5.86 a share based on a 'price to sales' ratio of 8 and their $22 million revenue projection for fiscal year 2006.


VALUATION RATING

GiraSolar announced projections of at least $22 million for fiscal year 2005/2006, which ends Sept. 2006. The average price to sales ratio within the solar sector is around 20, but for our valuation we are giving GiraSolar a price/sales ratio of only 8 for the time being. If we calculate a p/s ratio of 8 to their projected sale revenues of $22 million we come up with a market cap valuation of around $176 million.

($22 million x 8 time sales = $176 million market cap valuation)

Due to the company's recent forward split we are recalculating our valuation of GiraSolar based on current shares issued and outstanding of 30,000,000, rounded up from their 27,188,700 shares issued out currently. If you divide $176 million by 30 million shares outstanding you come out with a new price valuation target of $5.86 per share.

($176 million market cap / 30 million shares outstanding = $5.86 per share)

Thus, Ludlow Capital is maintaining its current rating on GRSR at A-, but is readjusting its 6 month price target valuation to $5.86 a share on an 8 times price to sales ratio.


http://www.ludlowcapital.com/reports/grsr.htm