Legend Investment Corp. (LVCP)

[sweet crude]

LVCP upgraded from B+ to A-

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



Ludlow Capital Upgrades Legend Investment (LVCP) Rating from B+ to A-

NEW YORK--Feb. 24, 2006--Ludlow Capital upgraded Legend Investment (OTC: LVCP) rating from B+ to a current rating of A-.

GIRASOLAR ACQUISITION

Legend Investment (LVCP) has been basically a non-operating public shell for the past 12 months, but on Thursday, Feb. 23, 2006 the company announced that they had completed the acquisition of 51% of Dutch solar company GiraSolar, BV. www.girasolar.nl.

Included in the acquisition are GiraSolar's three main divisions which consist of 100% owned DutchSolar B.V., 51% owned GiraSolar Turkey Ltd. Ste. (GST), and 100% owned GiraMundo B.V. DutchSolar BV is based in the GiraSolar headquarters in Deventer, The Netherlands, and has production locations in the Netherlands and abroad.


CURRENT & FUTURE REVENUE PROJECTIONS

In fiscal 2004/2005, GiraSolar generated $12,000,000 in sales revenue, and is in the process of converting their European audits to US GAAP standards which will now be reflected on Legend Investments financial filings with the SEC. In fiscal 2005/2006, GiraSolar is projecting revenues of approximately $16,000,000, with a further revenue projection of $30,000,000 for fiscal 2007. GiraSolar expects to achieve profitable results in fiscal 2006.


SHARES OUTSTANDING

Before the acquisition, Legend Investment had only around 4.6 million shares issued and outstanding. Legend Investment acquired their 51% stake in GiraSolar through the issuance of just 2,000,000 shares restricted, and now should have approximately 6,678,480 shares issued and outstanding upon closing of the acquisition.


NAME CHANGE & POTENTIAL NASDAQ LISTING

Now that the acquisition of GiraSolar is complete, we would look for a company name and ticker symbol change to better reflect the new company and business direction. At the same time we may see Wieland Koornstra the CEO of GiraSolar named as the new CEO of LVCP.

The new company may have a strong shot at actually being able to apply and be granted approval for at least a NASDAQ Small Cap listing based on their capital structure, and now current assets and revenues. To apply for a NASDAQ Small Cap listing a stock must maintain a minimum $4 bid price for over a 30 day period, which wouldn't be out of the realm of possibility. At $4 a share LVCP would only have a market cap of around $26.4 million, which isn't that outlandish. This may be a longer-term prospect, but LVCP has a strong shot of meeting that criteria.


VALUATION RATING

LVCP now represents a $12 million Dutch solar power company, with only 6.6 million shares issued and outstanding after the acquisition. Based on the company's current shares outstanding (6.6 million) and fiscal 2005 revenues ($12 million), Ludlow Capital feels a 'fair' market cap value for Legend Investment should now be around $12 to $20 million, which would represent a stock price of around $2.00 to $3.00 a share. Thus, Ludlow Capital is upgrading LVCP rating from B+ to a current rating of A- based on a current stock price of only $0.55 a share and a market cap valuation of only $3.6 million.