Legacy Strengthens Tyco Partnership. Ships Additional Units

Legacy Holdings Inc. (OTCPK: LGYH) is out with major news this morning regarding a second product installation with global powerhouse Tyco International, Ltd.

With publicly stated plans to take a piece of a $7 billion addressable market and soon become the leading U.S. wet process supplier by 2011, a re-order from such a prestigious partner is a very positive sign that things are progressing nicely for LGYH.

Powerful Dynamic Building at LGYH

Currently, a powerful dynamic is building at Legacy between the performance of the stock and the operational success of management.

As evidenced by the graphic to the right, LGYH has performed amazingly in the market over the past three months. Shares closed up just over 18% today at $.58. This marks a 480% run-up since the stock hit its 52-week low of $.10 on 5/30. Shorter term, in addition to share price trending upwards more than 100% over the past month, total volume is up nearly 20% since 6/23.

If the company can follow up today's Tyco announcement with more positive news on additional sales and orders, we could surely see a subsequent increase back up into the stock's 52-week high range well over $1.00. To be quite honest, judging by the recent trading activity in the stock, news that the company has strengthened its partnership with Tyco by shipping a second unit may do the trick itself.

For those of you largely unfamiliar with the company, Legacy was founded way back in 1989 by four Texas Instruments engineers.

Currently the only semiconductor equipment company to ever receive the prestigious U.S. EPA Green Chemistry Award (1997), Legacy is an emerging provider of cleaning equipment and process technology to the semiconductor and related industries such as Solar Cells, Flat Panel Displays, and Light Emitting Diodes. In a nutshell, the company's solutions help adopters across a multitude of industries save time and money while becoming more environmentally efficient. Legacy's patented technology helps adopters slash production costs by eliminating the use of toxic (sometimes referred to as piranha) solutions and reducing the overall usage of water in the cleaning process.

Legacy’s technology demonstrates a significant value proposition for the $7 billion per year silicon wafer cleaning industry in 4 key ways: (1) Improving wafer processing time by 200%; (2) enhancing oxide removal control by 92%; (3) decreasing costs by 22% by reducing the amount of consumable materials used in wafer cleaning; and (4) reducing particles left on the wafer after cleaning by 76%.

Tyco a Perfect Match for Legacy

By aligning itself with leading global electronics manufacturers such as Tyco, Legacy gains access to a substantially larger pool of resources than otherwise possible.

With more than $19B in annual sales, Tyco employs more than 120,000 workers and invests billions in R&D each year. On a side note, the company has a pretty well-documented reputation of "paying for innovation" and purchasing smaller partners, sometimes for a premium.

Simply put, Tyco's decision to align itself with Legacy speaks volumes for the company's credibility and also the depth and breadth of its core technology. This fact alone should have investors optimistic regarding what the future holds. With billions of R&D dollars and executives in every corner of the globe, I'd guess if there was a better green silicon wafer cleaning solution out there, Tyco probably would have discovered it by now.

In my opinion, the only thing separating Legacy Holdings from greatness is capital. Partnerships with industry behemoths such as Tyco should help the cause immensely.