Would you be impressed by a 439% increase in sales? Yeah, we were too when On The Go Technologies (OTCBB: ONGO) reported that improvement in their full-year results. Last fiscal year (ending in July) the company posted $5.5 million in revenue, but thanks to some key acquisitions, On The Go was able to rake in $30.0 million in sales this year. Not bad, huh?

Of course, there’s more to life than just the top line. All the other lines, for better or worse, were proportional to the ‘then’ from a year ago. The per-share loss this year was 65 cents, versus a per-share loss of 59 cents a year ago. On a bottom line basis, the company lost $6.3 million, compared to a $1.0 million loss last year. The cost of sales as a percentage of revenue went from 18% to 16%. Like we said, the accounting statements were basically proportional.

What’s our take? We’d be the first to acknowledge we’d rather see profits instead of losses. But, as always, you have to know the whole story to get the right perspective. What the numbers don’t tell you is that the loss this year includes $1.2 million in financing expenses that are scheduled to decrease (significantly) next year. There was also a one-time debt-restructuring loss of $633,479 charged in fiscal 2006. Assuming that a million bucks (or so) between these two big drains won’t be showing up - at least not to the same degree - on next year’s books, then next year’s loss will be pared to maybe $5.3 million (keep in mind these are very rough estimates, and they assume next year will be a mirror image of this year in every other way).

So how’s the company going to make money next year if mirroring last year’s results? It’s a fair enough question. The answer is, by not mirroring last year. The key thing to keep in mind is the acquisition of Infinity - the main reason sales increased like they did - is still in the rear view mirror. All the associated expenses (extraordinary or otherwise), overlap, and required restructuring is still ringing in their ears, so to speak. Give the company another year, at least, to really polish up the merger. That will go miles in getting the company closer to profitability, even if it’s not precisely clear which expense lines are going to get smaller. And hey, the top line - even after the Infinity acquisition - is increasing too….just read back through all the other ONGO blog entries.

A risk? Sure - any stock includes risk, and this particular one may also require plenty of patience. But, the potential progress On The Go could make by next year makes this an idea worth considering.

For the complete fiscal results, click here.

It was only a few days ago, in the October 17th newsletter, we mentioned the importance of viral–marketing top spread the word on a new drug or therapy. The case in point at the time was Biocurex’s (OTCBB: BOCX) RECAF blood test….the cancer-detection test successfully detected stomach cancer in its first known clinical trial for that form of cancer. The results were not surprising, as we’ve seen RECAF test well in the detection of several types of cancer in just the last few months. What we were excited about - for investors - was who did the test, and what they did with the results. The test was performed by an independent team of scientists in Japan, and they wrote about the results in a global medical journal. There are two key benefits here:

1. The fact that an overseas team performed the test at all validates the growing interest in RECAF’s effectiveness
2. The write-up in the industry journal will go far in spreading a credible message about how well RECAF performs

The bottom line for both benefits, though, ultimately means sales for Biocurex - the more people that know about RECAF, and are likely to use it, the bigger the potential market is.

What’s that got to do with Biocurex and RECAF being highlighted television? It’s evidence that publicity is viral…it spreads exponentially once a little momentum is in place. Today we learned RECAF is going to be the topic on an upcoming episode of television’s ‘Your Cancer Today’. This highly-focused show has the potential to introduce a cancer-detection tool to a very interested audience, perhaps continuing to expand knowledge of RECAF, and therefore, expand the market for RECAF.

Maybe the Japanese test was the reason Biocurex will be presented on the television show, or maybe it was Biocurex’s presentation at an industry conference a few weeks ago; we just don’t know. We do know, however, that the buzz is growing - and accelerating.

We encourage you to watch the show, which will be airing this weekend. For local airing times, be sure to visit the program’s website www.YourCancerToday.com.

For the full press release, click here.

Don’t forget, SmallCap Digest offers free stock ideas and market commentary through our e-newsletter. Be sure to sign up today using the link in the top right corner…and don’t forget to respond to the confirmation e-mail. Or, add us to your RSS feed using the link in the left-hand column.

We first mentioned Network Installation (OTCBB: SIEN) was changing their name to Siena Technologies in a blog entry from last Thursday. At the time we didn’t know of any new ticker in the works, but we’ve now learned the ticker has indeed been changed….to SIEN. You may find that both (or neither) tickers work for your particular quote service. Be sure to give it a couple of days for all the data to propagate. We’ll get our website updated soon as well.

As for trading this company’s stock, nothing has changed - the company is still doing well, but the stock is still struggling. However, it’s also worth noting the downturn that plagued shares last year has at least turned into a flattened consolidation….perhaps this is a base that SIEN shares could build a rally on.

For those of you following our new ‘Trader’s Corner’ column, you probably already know the Atherogenics (NASDAQ: AGIX) trade found our suggested target price of $15.00 on Monday.

The move from $13.03 - the opening price on the day after we posted the idea on September 26th - to $15 was a nice 15% for AGIX, although the return on the out-of-the-money November 15 calls was considerably greater. Depending on exactly when somebody got in or got out, the trade could have meant gains anywhere between 46% and 100%…any of which would be a nice return for a holding period of less than a month.

Want more ideas like this one? The ‘Trader’s Corner’ is only accessible through our homepage. And don’t forget, we have three other new exclusive columns as well…

‘Technology Trends’ is a must-read for investors looking to keep ahead of today’s newest technology that could lead to big bucks in the future.

‘Market-Wise’ shares the insights and experience of a veteran trader.

‘Heating Up’ looks at the ins and outs of the current market that really matter to investors.

Don’t forget, SmallCap Digest offers free stock ideas and market commentary through our e-newsletter. Be sure to sign up today using the link in the top right corner…and don’t forget to respond to the confirmation e-mail. Or, add us to your RSS feed using the link in the left-hand column.

If you weren’t able to make it to Wednesday’s conference call, Multicell (OTCBB: MCET) has made a replay available. To listen in on what was said, just click here (Windows Media Player required).

Although we can’t quite do the conference call justice in this limited space, here’s a quick recap of the highlights…

• Multicell is leading the race in Multiple Sclerosis treatment, with a treatment for MS-related fatigue in the latter stages of testing
• A patent has recently been submitted on Multicell’s novel way of delivering treatment to a malignant tumor
• The company owns - or has at least submitted patents for - fifty-four distinct therapies

Obviously it would be better to hear it straight from the top, so be sure to listen in on the replay…it’s the voice of Multicell CEO Stephen Chang.

The news really shouldn’t come as a total surprise…Web2 Corp. (OTCBB: WBTO) said on October 4th they were going to do it, and we reiterated that in our newsletter the same day. Well, here it is, in all its glory. The ByIndia.com we were touting then is now ‘live’. The revamped site now includes features like social networking, classifieds, video uploads, and more Web2-ish widgets.

And the point? Our only goal then - and our only goal now - is to fully explain the opportunity Web2 Corp. is facing. By extension, it’s also an opportunity for potential shareholders.

While we don’t want to belabor the point as deeply as we did on the 4th, we do want to remind you of three high points. Any and all could make a very strong case for WBTO shares gaining a lot of popularity in the foreseeable future.

• Social networking is a viable venture. The fact that MySpace.com thrived at all is proof of that. And, the News Corp. (NYSE: NWS) purchase of MySpace’s parent company - to the tune of $580 million - should provide some perspective on just how serious this business is. There is no dominant social networking offering in India…until now.
• Video uploading sites are a viable venture. Google’s (NASDAQ: GOOG) $1.65 billion purchase of YouTube.com was no accident; clearly somebody sees some serious value in Internet-based outlets for digital media. Again, there is no site focused on user-made video in India…until now.
• Did we mention the Indian population is the fourth-largest set of Internet users in the world (behind USA, China, Europe)? By 2010, it’s on pace to become the largest set of Internet users worldwide. It’s also the second largest general population on the planet, and will soon (2007) surpass China to become the largest.

The upside potential is incredible, perhaps even a little unfathomable, as the entire industry is propagated on the other side of the world (at least for most of our readers). Clearly the dollars up for grabs could be the order of millions, which is exciting for Web2 - and shareholders - to say the least. The incredible part? It’s only one of four key divisions the company operates.

As part of a total corporate makeover - the one we’ve been logging here at the SmallCap Digest recently - Network Installation (OTCBB: NWKI) has decided to change their name to Siena Technologies. The company feels the old name is no longer descriptive of the new company, now that Kelley Technologies has been acquired, and after several of the old divisions have been dropped.

And, it may not be a bad idea. A rose by any other name may smell just as sweet, but in the market, a new name can be a clean slate - at least in investor’s heads. So in that light, we think the reinvented company will probably be better served by a completely different moniker.

And, since we haven’t looked at it in a while, here’s a chance to update you on what the new company is doing……

The new focus is two-fold. One arm is going to build and install sports book technology, primarily for casinos. And of course, being located in Las Vegas makes that business much easier to operate…where most of their customers are likely to be. The other arm is going to continue providing video, telephone, and data (broadband) technological and installation services to multiple dwelling buildings (i.e. condos and hotels).

How are the two division doing? Very well, thank you. As we reported in a September 7th blog entry, the sports book side of the company just completed $9.5 million worth of work for two major casinos. And, there’s another $6 million worth of business - via two giant contracts - scheduled to be booked in December of this year. Network/Siena also has completed (or will complete by the end of next year) at least $1 million worth of work for their voice/data/video business. So yeah, things are going very well.

If you missed the detailed look from August 15th, we encourage you to go back and read it….this turn-around story is getting really interesting.

No word yet on any ticker symbol change. It’s not required by the exchanges, although we would expect to see the company drop the old ‘NWKI’ ticker, since it’s a remnant of the old name. Switching tickers, however, can require a little more red tape than a name change. We’ll let you know if it does.

Don’t forget, SmallCap Digest offers free stock ideas and market commentary through our e-newsletter. Be sure to sign up today using the link in the top right corner…and don’t forget to respond to the confirmation e-mail. Or, add us to your RSS feed using the link in the left-hand column.

Multicell Technologies (OTCBB: MCET) announced earlier this morning they’ll be hosting a conference call and simultaneous webcast today, at 12:00 PM (noon) EST. The agenda includes a discussion if the companies current lead drugs, and the expansion of its patented intellectual property.

Although the topics are pretty much the standard fare for a conference call, there will be a chance for investors to ask questions.

To participate in the phone all, callers within the United States may dial (800) 230-1085. When prompted, tell the operator that you would like to connect to the MultiCell conference call. International callers can dial (612) 288-0337.

To access the webcast, click here.

You’ve got to respect a company that tells you what they’re going to do, then goes out and does it. So, kudos to Multicell Technologies (OTCBB: MCET), as they just confirmed progress in the development of an MS-related fatigue treatment. The drug is now entering latter phases of testing in the United States on the heels of promising Phase IIb testing in the United Kingdom. Where is it all going? If the drug treatment progresses satisfactorily through phase II and then phase III clinical trials, Multicell will be the only treatment provider for the MS-related fatigue market…estimated to be worth a total of $3 billion during the period that Multicell would be protected by its patent.

The crux of the news release (below, as always) was the announcement of the team members selected to head up the final testing phases. As you would expect from a company of Multicell’s caliber, the names mentioned came with plenty of credentials; we have little doubt there couldn’t be a more qualified group of individuals selected to finish up the drug’s development. But to be honest, as investors, it wasn’t really our concern. We’re far more curious about what the opportunity is, and the risk - whatever it may be. In that light, we found the tedious details of the press release to actually be far more interesting.

As usual, our ‘take’ on what it all means is immediately below…written from an investor’s point of view.

Straight to the Heart of the Matter

From where we sit, there are really only two questions to ask, at least as far as today’s new goes.

First question - what’s the opportunity here? Well, as we said above, there’s an estimated $3 billion up for grabs during the lifespan of the patent, which is good for another 15 years. With just a little math, it’s pretty easy to figure out that could mean up to an extra $200 million or so per year for Multicell.

In the grand scheme of things it may not seem like much, say in comparison to the annual cancer market which totals somewhere between $10 and $20 billion. But, perspective is everything. In fiscal 2005, Multicell did $209,156 in revenue. So yeah, the potential improvement here for this company’s bottom line is enormous.

Of course the follow-up concern should be whether or not Multicell will actually be able to tap into all of that potential market. As we said already, though, nobody else has an MS-related fatigue drug in the works…at least not yet. With essentially no competition in sight, we don’t see many reasons why Multicell couldn’t earn a very big chunk of that business; even a fraction of it would be a big (relatively) victory.

Second question - what’s the risk? The drug is still in the middle phases of clinical testing, so it hasn’t yet gotten a ‘final approval’ from the appropriate government agencies. The risk is simply the possibility that the FDA - or the UK equivalent - could send MCT-125 (the name of the drug) back to the drawing board. That means more time and money would need to be poured into the project to bring it back into the testing loop. It may seem like a big potential problem, but frankly, that’s just the nature of the game. That being said, this may help ease at least some worry…

First of all, we’re not doctors…we don’t even play one on TV. We are, however, able to read about drug testing results. We mentioned above that the clinical trials so far in the UK test look promising. Why? This quote is ripped straight from the press release:

“In a 138 patient, multi-center, double-blind placebo controlled Phase IIb clinical trial conducted in the UK by Amarin, MCT-125 (then known as LAX-202) demonstrated efficacy in significantly reducing the levels of fatigue in all MS patient populations enrolled in the study including relapse-remitting, secondary progressive and primary progressive.  Patients enrolled in the Phase IIb trial conducted by Amarin reported few if any side effects following daily oral dosing of LAX-202.”

No, it’s technically not a ’sure thing’ - there’s no such thing though. You know the potential risks, and you also know the potential reward. And, as attractive as the possible revenue increase is, we still know it’s going to take a lot of time to get the drug to the market. On the other hand, experienced biotech investors know how these stocks can be ‘rewarded’ for their progress well before any final approval is in place. So, waiting for a ’sure thing’ could leave you behind the eight-ball, so to speak. Your job now is to evaluate all of these things, and figure out if, or how, it matters to you as an investor.  

Interest in Owning the Stock May Go Deep

While we’ve honed in on only one of Multicell’s drugs, keep in mind investing in MCET shares is not the same as a direct investment in the MS fatigue treatment…which is a good thing. As much as MCT-125 could boost sales, shares of Multicell represent ownership in a much wider variety of cutting-edge therapies related to diabetes, macular degeneration, and other common medical problems.

So, don’t forget the other key points we’ve shared regarding Multicell since our coverage began on September 28th. They are, so far:

• The initial profile and overview (9/28), where we learned the company has now fired its first shot in the war on cancer.
• The press release (10/7) describing the massive number of patents - pending or issued - that Multicell could potentially monetize.

In the meantime, it doesn’t look like the SmallCap Digest is the only interested observer here. MCET shares surged on September 29th, on very high volume. While we initially feared a pullback as the stock settled in again, we can see how traders have been willing to keep shares aloft. In fact, we’re actually seeing a short-term support line being formed. If the October 2nd high of 46 cents can be surpassed, it could go far in assuring tentative players the buying interest in MCET actually goes pretty deep.

Click here for the full press release.

You ever heard the phrase ‘The bigger they are, the harder they fall’? It can be true of stocks as well. For that reason, most investors get a little nervous (and rightfully so) when an issue puts up giant gains in just one day - it almost always seems to invite a reversal.

However, it isn’t necessarily a bad thing. You just have to exercise a little patience when - or even if - responding to the surge. Sometimes, the trick is letting all of the upside volatility play out, and then letting all the profit-takers do their damage, before getting involved.

Not one, but two of our focus company stocks may be a prime illustration of this point. Both rallied sharply last week, then both fell back in the shadow of their own rallies. Now with the shake-up most likely complete, putting the trader hat back on is a little easier to do. Let’s take a look at what we like so far about each chart…

On the 16th, CEL-SCI (AMEX: CVM) rocketed from 67 cents to 76 cents, resulting in a one-day gain of 13%, even though there was no news behind the surge. The gain was impressive, but wound up being too much, too quickly. The stock eased back to a low of 70 cents four days later, after trading as high as 81 cents the day after the big gain. At that point, some traders would have chalked it up as a fluke, and figured it was on the way to lower lows. And, we can’t say we entirely blame them. However, it pays to keep watching when you get such a move. CEL-SCI shares were up to as high as 79 cents on Tuesday, quickly recovering from the pullback seen just a few days earlier. The implication? Pay attention to high volume rallies, even if the immediate result is a dip. There’s always more to the story than one or two days. In this case, the surge may have been a brief flash of what the market really thinks about CEL-SCI stock. The dip was just a second chance at a low entry point.

Eagle’s (AMEX: EAG) chart went through the same process, getting launched from 76 cents to $1.03 on the 16th (and had been as high as $1.12). The stock fell back, all the way to 70 cents by Monday. But, the 20 day moving average line acted as support, and pushed shares back up to a high of 90 cents on Tuesday. That’s a 25% gain from Monday’s close…and probably one that not many people figured was going to materialize.

The bottom line is this….buying on a dip is like catching a falling knife, but simultaneously, buying after a big move isn’t really any smarter. The best course of action is probably somewhere in between. To make the most of these opportunities though, you have to keep these names on your radar for a while - to see how they play out. I can guarantee you somebody saw the early bullish hints on Tuesday for both of these stocks, and were able to get in well under the highs. Never, never assume a high-volume surge is an isolated event. If support is found, as it was for Eagle, you’d have to be astutely watching it to know it.

Now that both stocks have made two big gains while above the 50-day moving average line, the technical bullish argument - and longer term upside momentum - is considerably strengthened.

And yes, Tuesday’s big rallies for both names qualifies as the size of gain you may want to be careful about jumping onto right away.

OK, despite the fact that we were bullish on the  auto industry (per the July 19th blog entry), even we have to admit a little shock about the Dow Jones Automobile Index (DJUSAU) being up more than a full percentage point on Monday. Why? Ford (NYSE: F) just reported a mere $5.8 billion loss in their third fiscal quarter…the worst loss in over 14 years. As if it weren’t bad enough, they’re looking for things to be even worse next quarter! So how badly is Ford down? Shares are 1.6% lower as of the time I’m writing this. Frankly, I’m surprised it’s not worse, especially in light of all the profits that could be taken, with the stock 30% above its June low of $6.06.

Even more impressive is the strength the rest of the auto sector is showing despite the problems that the nation’s second biggest auto-maker just confirmed. Normally this group’s icon, at least the domestic one, would serve as a proxy for the rest of these stocks. Not today though. The market is shrugging it off, assuming not all of these symptoms have infected the rest of the players in the auto industry.

What’s our take? Hey, we’re not going to fight the crowd here. The fact that the group is higher despite plenty of reason not to be tells us the buying interest goes deep. Maybe Toyota Motor (NYSE: TM), General Motors (NYSE: GM) and other auto manufacturers are still worth a look, as mentioned in the blog a handful of times a few weeks ago. The charts sure look pretty solid to us.

If you liked Clearly Canadian (OTCBB: CCBEF) when we first started looking at it in March but felt you missed your entry point, well, here’s your second chance. Shares closed at $2.49 on Thursday - where they also closed on April 27th, right before the monster run to a peak of $4.55. The move was good for an 82.7% gain.

Despite the fact that CCBEF has done little but fall backwards since June 22nd, we have to wonder if the demise has also set up a trading opportunity. And when we say trading, in this case, we truly mean it in a casino-like sense. The best shot at an upside move from here is almost entirely fueled by the bounce that can come after a hard fall. Fortunately, the volume behind the weakness was tepid, so it’s not like it’s a completely uphill battle. The lowest of the Fibonacci lines (at $2.20) actually extends back to March. That, plus being as oversold as shares were, suggests that we’ll see a little follow-through on today’s big gain.

A risky guess? No doubt about it. But, one that could have a good (maybe even great) payoff if it works out according to the odds. The potential pitfalls are resistance at the 20 day moving average line ($2.66) and/or the 50 day line ($2.88). If the stock can get past those averages, we could possibly see the same kind of buying effort we saw this summer.

Don’t forget, SmallCap Digest offers free stock ideas and market commentary through our e-newsletter. Be sure to sign up today using the link in the top right corner…and don’t forget to respond to the confirmation e-mail.

Feel free to adopt whatever opinion you want, as it won’t change the fact - Xtreme’s boats are some of the fastest on the water. Period.

In a Chattanooga, TN race held last weekend, one of Xtreme Companies (OTCBB: XTME) Challenger Powerboats - a DDC 28 - set a new course speed record for its class. It’s impressive to say the least, but what’s even more impressive is who previously held the course speed record. It was none other than the same Gallagher team, racing the exact same kind of Xtreme/Challenger boat.

When the competition raises the bar and inspires you to do better, that’s one thing. When your best competition is your own past performance and you top that too, well, then at that point it’s pretty clear you’re doing something very, very right.

As we mentioned the last time we looked at Xtreme, each of these racing victories is also likely to be a boost for Xtreme’s bottom line. With Challenger’s setting course records, and doing as well as they have on the racing circuit, eventually the boat jockeys who aren’t driving Challenger boats are going to be forced to do something if they want to stay competitive. In the meantime, each time a Challenger boat crosses the finish line first, a lot of potential boat buyers take notice of the name painted on the side.

Like we said on September 6th, the reinvented Xtreme Companies story is starting to get good. At only 3 cents now, the stock is an interesting idea.

For full details on the Chattanooga record-breaking race, click here.

How would you like another $900,000 in your pocket? If you want to know what it feels like, just ask someone at Eagle Broadband (AMEX: EAG). Aero-Vision Technologies, who had been leasing equipment from an Eagle subsidiary, decided to buy out the lease for the sum of $900,000, paid in cash.

No, it doesn’t boost the bottom line by 900K; it’s mostly just a case of getting paid now rather than paid later (adjusted for time, of course). However, as long as it doesn’t cost Eagle anything extra, money now is always better than money later.

The most recent accounting records (as of May 31st) show ‘cash on hand’ at $261,000. Barring any significant changes between now and then, the total should now be around $1 million. That’s going to provide a lot more flexibility for Eagle as they continue to build their IPTV business.

For the full story, click here.

Earlier this week when we highlighted Execute Sports (OTCBB: EXCS) gigantic increase in their quarter-to-date sales of water sports gear, we - along with our readers - were impressed by a hefty 800% improvement. What was missing, however, was an actual dollar amount. What did an 800% increase actually mean in terms of the company’s bottom line?

While the original press release didn’t go into the details, we still think it’s a fair question. Here’s what we’ve managed to learn in the meantime about the increase (and keep in mind these are completely unofficial numbers)…

As of that time in the same quarter last year, Execute had sold about $14,000 worth of ’rubber’ - the slang term for body suits and related items. As of the same time in Q4 of this year, the company had booked about $140,000 in water sports sales.

A couple of key notes about the data… 

First, the math doesn’t exactly work out. The actual dollar increase cited above is actually a 1000%, versus the company’s stated 800% increase. Not a big deal - maybe the timeframes in question weren’t exactly synchronized. Maybe the difference had something to do with when the sale is booked and when the check is cashed. It doesn’t matter. Either sales increase is impressive, so we’re not concerned about a little disparity between our unofficial calculation and the company’s official announcement.

Second, keep in mind that the increase was in reference to just one division, and wasn’t even based on a full quarter. Just for perspective, Execute racked up $507,000 in sales during Q2 of this year, and did about $2 million in sales last year. So, an increase of that magnitude should make a significant impact when they finally report Q4 figures next year.

In any case, there’s the answer, and we still think it’s an impressive one.

We often hear about CEO presentations at conferences and forums. As far as investors are concerned, those kinds of announcements don’t necessarily mean a lot. The industry-specific group is rarely there to talk about the investment opportunity; they’re usually there to just talk shop.

However, there are instances when it makes sense read beyond the initial blurb regarding a CEO’s speech, as it actually may have a significant impact on a stock’s price. Case in point - Multicell Technologies (OTCBB: MCET). CEO Stephen Chang will be presenting at yet another forum this week…on Wednesday, the 18th. This forum, however, is specifically for biotech investors. In other words, people who may be interested in a biotech company like Multicell may be hearing the story for the first time. 

You already know about the opportunity thanks to our coverage, but what’s going to happen when Multicell is highlighted to a group specifically there in search of biotech stocks to buy? You think it might create a buzz? Maybe even drive the price up further? Yeah, we think it could happen too. We’ll see. Just wanted to give you a heads up.

A few weeks ago when we saw one come in, we were impressed. Now, however, On The Go Technologies’ (OTCBB: ONGO) sales momentum would make it unusual NOT to be hearing about all these big fish they’ve snared. Today’s single-sale total is worth $107,000…a purchase made by a North American stock trading firm.

The sale pushes the two-week sales tally to $2 million, which is a record for On The Go. And for a company that did less than $10 million is sales last year, it’s an uncanny increase.

We recommend you review our more recent comments about On The Go by clicking here. The transformation we’ve been archiving is an incredible ‘night and day’ story that needs to be fully understood to be fully appreciated.

The similarities to YouTube and MySpace are becoming more evident every day…and that’s a good thing, considering YouTube was bought by Google (NASDAQ: GOOG) for $1.65 billion a few days ago, and MySpace was bought by News Corp (NYSE: NWS) for more than $500 million in the middle of this year.

In fact, it was only yesterday we learned one of MySpace’s creators had been hired by Ckrush (OTCBB: CKRH) as a consultant, sending yet another message that LiveMansion was serious about competing with already-established community and creative outlet sites.

And today, we’ve learned LiveMansion now offers its own web-based video player, further mirroring one of the key draws of YouTube. As of right now, the video player is only available to those involved in the casting call for ‘LiveMansion: The Movie’, who will use the tool to upload their own audition, or for directors to use while viewing the auditions. However, the tool will be rolled out for all users soon.

The point investors should take away is simply how LiveMansion has progressed nicely, and in just the way originally described when we first told you about Ckrush. While the stock has been volatile (up, as well as down) since then, the company’s divisions are still proceeding according to plans….and doing quite well with them, to boot. Eventually, we think the stock will start to garner the same kind of interest that Livemansion.com and Ckrush’s movies have.

On a side note, we’ve seen considerably greater buying volume over the last few days. An omen of growing interest? Maybe.

Back in the June 23rd newsletter, we made what we think is a valid point about handling - on a personal level - the fine balance between being an investor and being a trader. To restate the point we made then (although we encourage you to reread the whole edition), there are good reasons you should be both, depending on the circumstances. Today, we’re facing such a scenario with one of our profiled stocks…although we’re still thrilled to have the problem at all.

Since we issued our initial profile of Eagle Broadband (AMEX: EAG) on September 15th, EAG shares have run from 59 cents to the current price of 90 cents. That’s a 52.5% gain in about one calendar month, yet is still overshadowed by the 89% gain we saw on an intra-day basis yesterday. Needless to say, shares are off a bit today, as traders are undoubtedly locking in some gains created in the rocket-like rise.

While we generally dislike such disruption, as it’s frequently an errant choice on the part of the sellers, we don’t think it’s necessarily crazy in the particular case. In fact, from a ‘trader’ perspective, it’s the right thing to do. It wasn’t the original intent or expectation; we liked Eagle Broadband for more fundamental ‘investing’ reasons. Regardless, anybody who bought shares last month is now playing the role of the trader…and must decide whether to risk a pullback, or stick it out and see where this thing goes.

In general, we’re inclined to lock in the sure thing. Surprised to hear that from a small and micro cap stock site? Yes, we’re aggressive - by definition. But, aggressive is not a synonym for stupid. When gains are on the table and the risk/reward scenario has changed, then the strategy must be adapted to reflect the new risk/reward ratio. Clearly, in the wake of today’s dip, some other folks are already thinking the same thing.

If a stock in this situation does indeed rebound and start to move higher, there’s no reason we can’t go out and buy it again. After all, the fundamentals we liked before still apply now.

Some traders/investors who can’t decide may think about hedging the bet by locking in gains on part of the trade, while letting the rest ride. That, too, could actually be a pretty wise move. The choice is always yours. Just be smart about it.

Although the stock is up 7% as I write this, I have to wonder if the word still hasn’t really spread yet. Heck, even when shares were 15% higher just a few moments ago, I found it surprisingly tame, at least based on the news.

What I’m talking about is Ckrush Entertainment’s (OTCBB: CKRH) announcement earlier this morning that they’ve hired Joe Abrams, one of the founders of Intermix Inc., as a consultant. If the names seem vaguely familiar, here’s why…Intermix is the parent company of MySpace.com, which was recently purchased by News Corp. (NYSE: NWS) for a mere $580 million.

What’s that got to do with anything?

MySpace is a social networking site. Ckrush’s LiveMansion.com is a social networking site. MySpace has been wildly successful since its launch, and quite profitable for its owners. LiveMansion is still in its web infancy, but is seeking to rival - and in some ways top - the MySpace phenomenon.

And now we hear they’ve hired one of the key minds of MySpace, presumably to help them mirror what MySpace did right?

If he can help Ckrush’s LiveMansion even do a fraction of what Intermix’s MySpace did, it’s still going to be enormously beneficial for Ckrush….and by extension, its shareholders.

As we mentioned previously, nobody at Ckrush has ever said they’re looking to get bought. However, it’s clear - based on today’s news - that they’re serious about making Livemansion a success. We’re willing to bet if Abrams is able to assist, they’ll have an outstanding shot at doing just that. And, if the company ends up getting bought out, well, there are certainly worse things to have happen.

In any case, getting Abrams on board is a big deal. We’re looking for LiveMansion to further accelerate its own incredible growth in the very near future.