Yesterday afternoon we learned Siena Technologies (OTCBB: SIEN) has put another $1.2 million in its war chest. The funds were raised via a private placement among senior managers and qualified investors. The terms of the deal were for every share of common stock sold, there was also a warrant included to buy another share. No specifics were released on the issue price or warrant strike, but we’re assuming it’s something at least close to the current trading level of 28 cents.

As far as we’re concerned, it’s money well spent…..or it will be anyway. Back on December 18th we highlighted the new success Siena was enjoying, suggesting their efforts may also end up benefiting shareholders. That opinion hasn’t changed. The company is really starting to put up some bigger numbers, and we think the stock may be in the ’sweet spot’…..the time between the re-invention and profitability.

By the way, CEO Jeff Hultman will be interviewed by MN1.com on Thursday (Feb. 1st) at 11:30 AM CST. We suspect he’ll be talking about the company’s past, and current/future initiatives. It may be a good chance to learn some things outside the normal media-tweaked fare. The interview can be accessed at www.mn1.com.

Here’s a link to the full press release.

In an ongoing effort to make our site a true ‘network’, we temporarily opened the window for readers to submit their own trading ideas. Though it has only been an experiment so far, we’ve found a handful of interesting stocks to consider.

The challenge (for us) is in doing this fairly and responsibly. In that light, we asked these readers to tell us what their interest was in the company (if any), and why they held their opinion. Keep in mind we have no way of verifying any of what we were told, but if it appears here at all, we at least think there’s some legitimacy to it. Of course, all of these companies deserve a good dose of your own due diligence. There are a few disclaimer-like statements at the bottom of the entry.

In any case, on with the show….

N-Viro International Corporation (OTCBB: NVIC) was mentioned to us several days ago. The company generates revenue coming and going, literally. They haul away sludge for a fee, then turn that same waste into alternative fuel used in power plants…and collect a fee for providing it. Our understanding is that the sludge waste/coal mix creates more energy (heat) than coal would alone. Two birds - one stone. Not bad.

Of course, along with the sheer attraction of being providing a clean ’alternative fuel’, the company also enjoys those alternative fuel tax credits. And you don’t need us to tell you the White House is clamoring for alternative fuel technology.

Of course, the use of a sludge/coal mix as fuel is currently minimal at best, but we suspect the 2004-2006 oil rally is likely to put even more alternative fuel wheels into motion. It’s been rumored (according to the reader) that General Electric, acting as a third party, has indeed monitored the successful operation of such a power plant. 

What the readers likes - as do we - is just how big this market is, yet how few players there are so far. If GE ends up liking the idea, or at least confirming that the process is viable, who knows where it could go? Any part of the world that burns coal and produces waste sludge is a candidate to use the process.

In our opinion, it’s not a bad idea. The stock chart looks pretty attractive to us too…perhaps because the word is getting out on NVIC’s potential.

If you’re looking an example of a company that has already done well in this niche, take a look at Synagro (NASDAQ: SYGR). We think N-Viro could follow in those same foot-steps, and enjoy just as much success, if things go well.

Like we mentioned above, we have no vested interest, nor have we done a particularly enormous amount of our own due diligence. We do, however, understand the concept, and agree there’s some serious potential for returns….with commensurate risk, of course.

According to the reader, he owns shares, though not what we would consider a large portion of the 2.2 million share float. He states he is not an insider, but that he is well-studied when it comes to this particular company (and we agree….he is). 

We hope you were in since the beginning, but if not, we at least hope you got in at any point between March 22nd (2006) and now. During that time, we’ve seen Commerce Planet (OTCBB: CPNE) move from our original pick price of 19 cents to our target price of $1.95, hit just a few moments ago. That’s a 926% gain for those lucky folks who took action almost a year ago. Of course, most everybody should have done pretty well no matter when you got in.

While we’re excited to be able to say we highlighted the opportunity to our readers well before the move, we also want to remind everybody we’ve got a couple of other current ideas we feel have the same kind of potential (and perhaps one still in the works).

With that big win in mind, there’s also a lesson to be reviewed…..the 80/20 rule applies to trading as much as it does to any facet of life. CPNE was only one of many ideas we’ve worked through in the last year or so, but that one trade, say at a 10% allocation, would have almost doubled your entire portfolio. Such is the way it works in the small cap world.

We feel to really make our ideas work for you, it’s best to read our comments consistently. Though only you can make any final trading decision, we’ll say this much….in life (and trading) we tend to regret the things we don’t do more than the things we do. If you regret missing the boat on Commerce Planet, don’t worry - we’ve always got ideas with the same kind of potential on the table.

In the meantime, are we letting loose of Commerce Planet? Maybe just long enough to let it cool off. If it looks like there could be more of the same upside in store, we’d have no problem looking at it again. Good traders frequently go back to the same well, if it makes sense to do so.

If the headline got your attention, then you can bet Web2 Corporation’s (OTCBB: WBTO) latest traffic strategy will turn heads too, as they unveil a $5 million sweepstakes for users of their Indian search engine ‘ByIndia.com’.

The goal of the sweepstakes? To cement the site as the premier site among Indian Internet users. The website is already ranked India’s #1 search engine, offering a whole host of features such as blogs, classifieds, video uploading, and online communities - just to name a few. But this sweepstakes? Well, let’s just say we think it could nail the coffin shut on the next nearest Indian search engine competitors.

It’s a big deal primarily because India’s residents are currently the fourth largest group of Internet users in the world, and are on pace to be the largest group of Internet users by 2010. Point being, that’s a lot of traffic….and when it comes to the web, traffic means dollars.

Sorry, the sweepstakes is restricted to citizens of India actually living in India, or in the United Kingdom. But, if you’re looking for a way to make some serious money in a short amount of time, maybe you should consider WBTO shares. With the kind of attention we think this $5 million bounty will draw, we’d expect Web2 Corporation’s ByIndia.com to quickly become a top revenue source for this diverse Internet company. For all intents and purposes, Web2 Corporation is ‘new’, and we think it’s still a great ground-floor opportunity.

True to their word, Clearly Canadian (OTCBB: CCBEF) today announced the next of their new distributors….this one being the New York distributor. Big Geyser, already one of the states biggest non-alcoholic distributors, will add Clearly Canadian’s product line to the list of beverages currently offered to the distributor’s 20,000 accounts.

This news follows a similar announcement from a few days ago, when we learned Clearly named Intrastate Distributors as the Michigan region representative of their product line.

The announcements are just one of many we expect to hear over the next several days. Clearly Canadian announced a revised distribution strategy a few days ago, which we think is a good move for the novel beverage maker. So far, the two distributors named do indeed seem better equipped to handle Clearly’s product line than the previous distributor may have been.

For the full release, click here.

If you just happened to own a fast-growing company called titan Global Holdings (OTCBB: TTGL), which we pointed out to our readers on January 13th, well…you may be on the verge of owning two great companies. Late last week, Titan’s Board of Directors authorized a plan to spin-off the printed circuit board (”Titan PCB”) manufacturing businesses to its current shareholders. We like the decision, as it should maximize the value for all of the company’s enterprises. More on that in a second.

In the meantime, we re-learned this morning exactly why we feel current owners should be excited about their stake in the spin-off stock - the circuit board division is putting up some blistering hot sales increases. Check it out…..

Record Revenues

Anybody interested in a business that recently posted record revenues? We are, and Titan’s PCB divisions didn’t let us down. The holding company’s PCB East and PCB West divisions, which are jointly referred to as the Electronics and Homeland Security Division, are on a roll. And, they seem to be taking what we see as big strides towards bottom-line profitability.

Last fiscal year, Titan’s PCB businesses reported revenues of $20.5 million, up 16% from $17.7 million in the previous year. The EBITDA loss of $554,000 was much better than the previous year’s EBITDA loss of $2.9 million…..about $2.3 million better, to be precise, and with only another $2.8 million in sales to provide that boost to the EBITDA total.

Do you see what we’re seeing? Though not quite dollar-for-dollar, based on last year’s figures, it looks to us like a large chunk of new sales are going straight towards the bottom line. If things continue as they are, we could see a move to a positive EBITDA figure sometime within the next few quarters. Why do we think that? This division is expected to generate approximately $25 million in fiscal 2007 revenue (excluding significant new product developments and acquisitions). That’s about $4.5 million better than fiscal 2006’s results, much of which may end up on the bottom line of the income statement, if 2007 is anything like 2006 was.

And, that’s why we’re getting excited - we think the $25 million revenue forecast is well within reach. See, in just the first quarter of fiscal 2007 (which began on September 1st of 2006), the Electronics and Homeland Security divisions pulled in sales of $5.4 million, handily topping the $4.4 million figure from the same quarter a year earlier. That’s a 24.2% improvement…..even better than the percentage improvement Titan is looking for here on a full-year basis.

The point is, the printed circuit board enterprise looks like it’s on the right track. In our opinion, we feel these new PCB division shares - once issued - could make for a great addition to aggressive portfolios. With that in mind….

The Spin-Off: What We Know So Far

Last week, the company’s Board of Directors authorized the spin-off of Titan’s Printed Circuit Board manufacturing business to its shareholders. The goal was to create a “new, more strategic independent public entity…the spin-off allows the company to accelerate strategic transaction flow at all divisions which will significantly build overall shareholder value.”

In plain English, that just means the circuit board business is expected to run even better (i.e. be more profitable) when managed independently of the communication divisions. It’s not that they were a poor mix when run side-by-side, but let’s face it - there’s a lot to be said for being able to focus.

There aren’t a lot of details yet about the spin-off, but we generally expect it to be a typical split with relatively few obstacles. The two PCB divisions are already a wholly-owned subsidiary of Titan, so it’s not like the entire organization has to start from scratch and play the ‘what goes where’ game. There’s still some paperwork to work through for the Securities and Exchange Commission too, but Titan expects the deal to be completed sometime in their fiscal 2007 (or by August 31st).

Of course, you may be wondering ‘how much’ of the new spin-off company you’ll be getting relative to any position you may currently own in Titan Global. We can’t say for sure, but our educated guess tells us to look for about 1/5 of your TTGL to become shares in the new company, while your remaining Titan stake is offset by the same approximate amount. Those proportions are based on revenue from last fiscal year; the PCB business saw $20.5 million in sales, while the communications division posted revenue of $89 million in 2006. That’s roughly a 20/80 split, give or take.

That question, and others, may be answered on Tuesday. Titan has scheduled an investor conference call to discuss the proposed spin-off at 12 noon (EST) tomorrow, (January 30, 2007). Callers within the United States can access the conference call by calling (800) 288-8906. International callers can dial (612) 288-0329. When prompted, tell the operator you would like to connect to the Titan Global Holdings conference call. If you can’t be on the call, there’s going to be an online audio web simulcast, accessible at http://www.trilogy-capital.com/tcp/titan/.

The only thing we’ll add is this….if you were interested in Titan, we hope you got in when we first told you about it on January 13th, or when we talked about a second chance on January 23rd. Shares are off to the races today, up 8.0% so far as of the time we’re writing this, currently trading at $1.35. That’s 22.7% above the low of $1.10 we discussed on the 23rd….not a bad little three-day clip, huh?

By the way, if you want your stake in the new spin-off stock to come straight from Titan, then you have to be a TTGL shareholder on the date of record set by the company. No word on when that might be, but perhaps the conference call on Tuesday could shed some light on when it may happen. You could always buy shares in the open market after the stock dividend is paid, but you run the risk of paying a serious premium…one you wouldn’t have to pay as a spin-off recipient.

And for what it’s worth, we like the potential of the stand-alone PCB enterprise as much as we did the entire holding company just a couple of weeks ago. The way each division is growing the top lines is just astounding, and we expect shareholders to be well-rewarded in the near and not-so-near future.

A recent letter from a reader regarding Immune Response (OTCBB: IMRP) was going to prompt a blog entry/reminder, but after thinking about it, we figured the letter itself would express our opinion as well as any thing else. So…..

Dear SmallCap,

I noticed in one of your recent blogs that the Immune Response Corporation is working on a “cure” for HIV. In my opinion, Joseph O’Neill would not broach such an issue unless he was pretty comfortable with the progress of their therapeutic vaccine candidates. That point, coupled with the massive deal Merck just made with Idera, the company behind Amplivax, has me thinking there might be some very good news on the horizon. Of course, I still don’t understand why investors aren’t buying this equity hand-over-fist.

At the very least, I hope you’re feeling as bullish as ever.

We agree on all counts. Dr. O’Neill is probably about as overqualified as a person could be for the job, so for him to choose to get involved speaks highly of Immune Response and their work. And yes, that’s part of the attraction for us.

The only thing we feel merits a little discussion is the word you used….’cure’. But, it’s not that you’re wrong. IR103, as we understand it, would work like a ‘cure’ in the same sense Dr. Salk’s original ‘cure’ for polio worked. In fact, it’s the same biological principle as the polio vaccine. And, that’s why we can even talk about the idea of a true ‘cure’…it’s a vaccine, instead of an antiviral.

The reason we don’t like to necessarily use the word is twofold. First, we don’t really know for sure that it will beat HIV. If it works like the polio vaccine does, yes, the problem is solved efficiently and permanently. But at this stage of the game, there may be a possibility that HIV is different than polio. We’re optimistic, but we’re not going to be irresponsible in our predictions.

The other reason we tend to steer away from the word ‘cure’ is simply that it might stir up a frenzy in the market - as well as in the world of healthcare. As much information is out there, and as thorough as everyone should be, we just worry that the right or wrong group of investors will hear the word ‘cure’ and then jump to every wrong conclusion imaginable. Yes, IR103 offers enormous hope, and if it lives up to the company’s expectations, it could mean the end to an epidemic as well be very profitable. But, we’re not there yet. We just want everyone to keep a level head. With that said though, yeah….so far, Immune Response appears like they’re working a true cure for HIV.

Are we bullish? Yes, but not blindly. It could be years before any HIV treatment hits the market, if it hits the market at all. However, if it does, it could mean huge returns. So, it may be prudent to view IMRP in light of its high-risk/high-reward potential.

We plan on publishing a newsletter specifically on Immune Response soon, so be sure to keep an eye out for it.

Although we have to continually clean out older stock ideas to make room for new ones, for the ones we found compelling, we may still follow the story - and the chart. Over the last few days, we’ve seen not one, but two of our 2006 trading ideas really come to life. Hopefully you stuck with them, even if we couldn’t.

First up, Novelos Therapeutics (OTCBB: NVLT). After a year-long downtrend, the volatility that was stirred up in Q4 of last year was enough to at least break the stock out of the rut. Since then - and for the first time in more than a year - we’ve started to see the stock make higher highs and higher lows. Still volatile? You bet….maybe even more so. But, it’s an impressive recovery all the same….made even more impressive by the fact that it wasn’t news driven. There was a bullish opinion issued by a reputable research firm around the time of the upside reversal, although we doubt that was the key reason. In any case, the chart’s looking a lot better.

Specifically, shares are back above the 200 day moving average line, for the first time since late 2005. We think that’s a pretty straight-forward indication that the momentum has shifted for the better. From here, I’d say don’t expect any less volatility. It’s possible a support line (dashed) has been established in the short run. That may be a better entry spot - if it dips - for anybody still interested in the opportunity. 

The other blast from the past is Execute Sports (OTCBB: EXCS), We blogged a couple of the recent news items, but we think it’s well worth being a little more explicit….it looks to us like the stock may finally be coming to life. Shares made a huge upside breakout a few days ago, and have followed through reasonably well. Apparently sales are just sky-rocketing.

You might recall we were big fans of the company and the success they were creating, but being as small as they were ($2 million in annual sales), the idea never seemed to get traction within the investment community. Looks like that changed in the last couple of weeks….somebody’s obviously buying the stock now. We think it may be worth a look if you have a little speculative itch you need scratched.

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.

Four month’s after going ‘live’ under Web2 Corporation’s (OTCBB: WBTO) direction, ByIndia.com got something of a facelift today. The site is using a new logo, and the interface is now better-geared for the philosophical Web 2.0 way of thinking.

On the surface you may not even notice these differences. Under the hood, though, the company is ready to rev its search engine. In other words, now that a substantial user base is in place, the company can Web 2.0-ize the site. One of the big advances we see to that end is a single-registration for all of the ByIndia offers (like job search, auction sites, blogs, etc.).

And by the way, not content with the fact that byIndia is now the most-visited Indian search engine, the site’s $5 million sweepstakes starts tomorrow. You can bet that’ll draw even more eyeballs, which for Websites - of course - ultimately means revenue. 

We knew things were firming up for Execute Sports (OTCBB: EXCS)…their Q3 sales surged from $96,000 a year earlier more than $500,000, and last October, they reported (mid-fourth-quarter) that water sports equipment sales were ahead of the same quarter a year earlier by 800%.

Frankly though, today’s announcement is just stunning…..the grand total ended up being a 1125% increase in Q4 water sports gear sales. No details on the dollar amount - at least not yet. But, we estimate that since Celeste Berouty (formerly the Director of Sales for Body Glove’s Wetsuit Division) has joined the Execute team, water sports sales have roughly been half of Execute’s total sales.

Is this a big deal? Well, we think so. Before Celeste got on board, water sports sales (again, just an educated guess) accounted for a tenth or less of Execute’s total revenues.

We’ll try and get the specific breakdown for you. In the meantime, two things to keep in mind…..

First, regardless of the exact sales-by-division figures, we’re very certain the improvement in water sports revenue will make a big impact once full Q4 results are released.

Second, those Q4 results could be coming out any day now. 

And here’s the incredible part…..you may recall a few days ago Execute announced they’d be making a line of PWC (personal water craft) accessories for Kawasaki. Well, neither today’s announcement nor the upcoming Q4 results will reflect that deal’s revenues. So, Q1’s figures could see a jump of the same magnitude.

As we mentioned a few times recently, this company and its stock may finally be getting some real traction. If you’re interested in a high-potential speculative play, we’d say this is one well worth thinking about. 

Here’s the full press release.

You may recall Titan Global Holdings (OTCBB: TTGL) hosted a quarterly conference call last Friday. If you weren’t able to participate in the call, a transcript is now available. The call details recent financial results, and highlights future revenue and growth plans. We encourage you to review the nitty-gritty on the company….it’s shaping up to be an incredible story.

To access the transcript, you can find instructions here. 

Last Wednesday, Clearly Canadian (OTCBB: CCBEF) teased us with some news about new distributors, but didn’t spill any beans about who any of them were. We finally got a hint today, as one of them was finally announced. Intrastate Distributors Inc. will be distributing Clearly’s line in Michigan. And as far as distributors go, Intrastate seems to be a good one….it’s one of the state’s biggest distributors of non-alcoholic drinks, and we think they’ll be able to flex a little muscle in getting Clearly Canadian some good shelf space. 

There are two things touched on in the press release (the link is below, as always) we feel are well worth highlighting.

First, as we discussed at length in last week’s Clearly newsletter, we expect most of these distributors to be smaller, regional outfits. This was confirmed today. The upside here for Clearly Canadian is straight-forward…..they’ll get the kind of attention they deserve. Going up against tradition powerhouses like Coke, Pepsi, and Gatorade isn’t easy. It will probably require a particular effort from the distributors and delivery drivers to maximize the Clearly-brand exposure. Seeing Intrastate named as the Michigan distributor tells us Clearly Canadian recognizes that concept, and is embracing it. We foresee similar distributors being named in the near future.

Second, this distributor already fronts for vitaminwater (R) and Fuze (R). Both are in the same ‘alternative’ beverage group Clearly Canadian competes in. While it may initially seem like a conflict of interest, after some consideration, we think it may be beneficial. Why? Because it confirms Intrastate can and will handle Clearly’s product line appropriately, since they’re already doing it for a similar product.

Here’s the full press release, and don’t forget - Clearly Canadian will be unveiling a new product line on Thursday. We can’t wait to see it, and taste it.

Just a few days after getting the green light from the FDA for Phase III trials of Multikine, CEL-SCI Corporation (AMEX: CVM) announced this morning they’ve signed a letter of intent to build a $12-$14 million facility which will be used to manufacture the cancer-fighting drug.

What do we infer from the news? One of the themes we’ve been talking about lately is reading between the lines when it comes to publicity efforts. For instance, Clearly Canadian’s (OTCBB: CCBEF) decision to switch distributors - on the surface - didn’t offer any clear, immediate benefit to shareholders. So, why did they even bother touting the decision? In our view, there’s more to that story yet be told. We think a new distributor is just a small piece of a much bigger plan to fully revive Clearly Canadian’s prowess, and revenue footprint.  

In a similar sense, we think CEL-SCI’s decision to commit a few million bucks to a manufacturing facility speaks well of their confidence in the drug…..and specifically, their expectation of ultimately getting it to the market.

CEO Geert Kersten has always said he’s a firm believer in doing things the right way, and in protecting shareholder value. Yes, the facility will make it much easier to work through Phase III testing, but a new lab wasn’t absolutely essential. For CEL-SCI to make this kind of commitment sends an underlying message they think Multikine has serious potential. Further, if the ‘in the know’ crowd at a company has this kind of faith in an enterprise, we tend to feel investors may do well by following that lead.

It could still be years until Multikine gets a final FDA approval, but CEL-SCI seems to be planning for the best…..and they’ll be able to hit the ground running if it happens. In our view, the potential upside still far outweighs any downside in owning a piece of this ground-breaking company.

Here’s the full press release. Be sure to read it, as it adds some detail regarding a cold-fill suite….a feature that could be well utilized in manufacturing other drugs as well.

Wow! A little news goes a long way, at least when you’re a micro-cap outfit that just landed a big deal with a major name in the watercraft world.

This morning, Execute Sports (OTCBB: EXCS) announced they had reached an agreement with Kawasaki Motors Corporation to design and manufacture a line of JetSki products. The Lycra rash guards, Neoprene boots, and Metalite top will be delivered in March. You’ll see them on shelves shortly after that.

And Execute’s shares? Through the roof, up to a hair over 6 cents from yesterday’s close around 3 cents. The stock was at a mere 2 cents just four days ago, so needless to say, those patient investors who kept the longer-term potential in mind were at least partially vindicated today.

There’s still a long way to go before getting back up to the all-time high of 55 cents, reached in March of 2006 (this stock only went pubic last February). However, today’s volume is by far the biggest volume day ever. Perhaps this company has finally gotten the attention of the market. We certainly think it deserves to.

You may recall we had a very positive opinion of the company, but being so new and unknown, the story could get very little traction within the investment community. As such, we finally had to drop our official coverage in search of better-responding ideas. Perhaps being linked to a name like Kawasaki finally put Execute on the map.

We’d say it’s worth a little time to browse back through all of our blog entries and newsletters regarding Execute Sports (click here). We kept pretty close tabs on things, and we suspect today’s interest is reflective of some of the things we discussed as much as it is the Kawasaki news. (Here’s the press release.)

Just wanted you to be aware, as many of you may still own it, or still be interested in it.

Titan Global Holding’s (OTCBB: TTGL) CEO, Bryon Chance, issued a letter to shareholders yesterday. We’ll reprint it below, but before we do, don’t forget Titan’s quarterly results conference call is later today.

During the conference call, Bryan Chance, Chief Executive Officer of Titan, will discuss the Company’s recently reported Q1 for fiscal 2007 with revenues reaching $29.9 million, representing a $2.3 million gain over the same period the previous year.

WHEN: Today, January 19, 2007, at 1 pm Eastern
HOW: Callers within the United States may dial (800) 230-1085. When prompted, tell the operator that you would like to connect to the Titan Global Holdings conference call. International callers can dial (612) 288-0340.
COST: The conference call is free of charge.
WEBCAST: An online audio simulcast of the call will also be accessible at http://www.trilogy-capital.com/tcp/titan

As for the letter, we’ve reprinted it in its entirety below.

———————-

Dear Valued Shareholder,

As you may have already noted, Titan finished fiscal year 2006 on a very strong and encouraging note, with revenues and EBITDA improving and our various business initiatives moving forward according to plan. Today, I am pleased to report that our momentum has continued into the start of the current calendar year, with important achievements in terms of balance sheet improvements and continued growth in our Communications Division and Electronics and Homeland Security Division.

Corporate Highlights

First and foremost is Titan’s exceptional financial performance during Q1 2007, where we reported a record $29.9 million in total revenues, representing a $2.3 million gain over the same period from the previous year. Leading this growth was our Communications Division, which reported revenues exceeding $24.6 million during the period and earnings before interest and non-cash charges of $2.3 million, an 82% increase from the same period the previous year.

Equally as important, the Company improved its balance sheet position with the closing of the $22.6 million refinancing agreement with Greystone Business Credit II, LLC. The agreement included a new $15 million revolving credit facility which will provide added working capital and a $7.6 million senior term loan with extended amortization which will result in cash flow savings.

In addition to the improved terms, we were able to repurchase 1.25M shares of our common stock from Laurus Master Funds for a total purchase price of $1,000, which reduced outstanding shares of our stock. All told, the new Greystone financing represents a significant cash increase for Titan, saving the Company more than $3.6 million in annual cash flow, reducing outstanding stock by 750,000 shares and reducing the fully diluted outstanding shares by more than 3.5 million shares (shares that were reserved for conversion of Laurus convertible debt instruments).

Our team also negotiated a settlement with the previous owners of one of our communications subsidiaries that resulted in reducing the preferred convertible debt instrument from $9 million to $4.5 million and reducing the associated stock reserved for conversion by 3 million shares. This settlement also resulted in the recognition of a gain of $4.5 million on the extinguishment of debt to be recorded in our second quarter of fiscal year 2007.

Also positively impacting our financial position was Titan’s recent favorable settlement with F&L LLP,the affiliate group that previously owned our Oblio Telecom division. That settlement reduced and fixed the liability for the issuance of Oblio preferred shares from $9 million to a principal amount of $4.5 million. The remaining $4.5 million of preferred shares are convertible at $1.50 per share.

In addition, Titan issued 250,000 shares of common stock to F&L. In connection with the change to the preferred stock, F&L agreed to extend the maturity date of the $4,822,850 of notes payable by Oblio to F&L to March 31, 2009, and increase the interest rate to 5% per annum. Oblio will make monthly payment of $178,930 on the notes, commencing January 31, 2007.

Division Highlights

Our Communications Division continues to produce growth and earnings in prepaid international long distance, call termination services and prepaid wireless services. Our distribution network continues to rapidly expand in new geographic regions adding additional points of market penetration. We are creating tremendous growth in terminated call traffic on our call termination hardware and we are rapidly expanding this capacity for anticipated increases in demand. The launch of Picante Movil will propel our wireless division as we build on the successes of our first Bravo Cellular launch last fiscal year. Picante Movil is leveraging the brand identity of our flagship Picante brand to penetrate the rapidly growing Hispanic market.

Our Electronics and Homeland Security Division, which offers advanced printed circuit boards and other products for military and electronics customers, has also announced new initiatives to continue the excellent performance and growth it demonstrated in fiscal 2006.

We recently reported the launch of Titan’s Fastrac program to exploit our quick turn capabilities in the high mix printed circuit board market. Fastrac will create market share in a new niche for Titan as we leverage our “know-how” to expand our product offerings. Team Titan was also strengthened as Mike Kadlec joined our group in November of 2006 as Executive Vice President of the Electronics and Homeland Security Division. Mike brings 29 years of printed circuit board and electronics industry knowledge to our team and has had an immediate impact on the division. To further accelerate our growth we have also increased our sales force for this division by more than 100% in the last 45 days.

Titan intends to continue the growth we generated during the fiscal year ended August 31, 2006, where we produced a total $109 million in revenues. As we have previously announced, we are projecting revenues to grow to $145 million in fiscal year 2007. This latest financing only gives us more confidence in our outlook for revenue growth and for continued growth in shareholder value.

These are just a few of the highlights for the start of the new year. Our team is dedicated to growing the shareholder value in Titan. We will continually search for ways to expand our horizons in the markets we serve and we will pursue other complimentary markets in which we can create substantial value.

We thank you for your continued support and we look forward to a dynamic year in 2007.

Best regards,
Bryan Chance,
President & Chief Executive Officer
Titan Global Holdings

One of the themes we’ve been discussing lately is the notion of how sometimes company news or announcements have a blatant point, and other times, there’s also a more subtle message being delivered.

Case in point - Clearly Canadian (OTCBB: CCBEF). The beverage producer issued two press releases over a span of two days…one to discuss the new distributor strategy, and the other to provide on overview of 2007 plans. Both were clear, but at the same time, neither were absolutely necessary…nor will either directly increase sales or earnings. No, we suspected there was a bigger motive than just getting a little attention. We think what was really going on could be considered a little groundwork - stirring the pot, if you will. The info was just enough to tease investors and consumers. Now curious, the next batch of publicity is likely to be highly anticipated….and that’s when PR efforts get real traction.

It’s a point worth illustrating again, as it seems Commerce Planet (OTCBB: CPNE) is using the same model. Earlier today they announced merger and acquisition council had been retained. No reason was given in the press release - it was just an announcement.

The question we’re asking (and the one we feel astute investors should always ask) is “so what?” The new council is certainly qualified, but nowhere in the press release did it explain how these new lawyers would be able to increase sales or profits.

In a case like this, we think you have to read between the lines (though the underlying message here isn’t as obscured as some we’ve seen). While there was no mention of it yesterday, the very fact that M&A lawyers were hired at all leads us to believe Commerce Planet intends to do one of two things….(1) put itself up for sale, which we’d say is less likely, or (2) look to continue acquiring other entities, which is more likely, in our opinion. Either way, it’s generally a good sign for investors, even if not a direct and immediate boost to share price.

For the full details, click here.

When it rains it pours, but that’s a good thing when it comes to Clearly Canadian’s (OTCBB: CCBEF) recent announcements. Yesterday morning we commented on how it looked like the chart was prepping for a breakout. Then later in the afternoon, we saw where the company had realigned its distribution network so it would be better suited for the alternative beverages Clearly Canadian produces. 

I knew lightning can strike twice, but it looks like it can strike thrice in this case. Clearly Canadian’s President, Brent Lokash, just issued a public letter to shareholders.

There’s just something about this company - and its stock - lately that tells me an upside opportunity is brewing again. We hadn’t heard much from them in months, and now they’re popping up on our radar constantly. The stock is behaving too. I can’t quite say it’s the calm before the storm, as it’s been anything but calm recently. Maybe with all the new lighting and thunder, we could describe it as the beginning of the storm. 

No sense in paraphrasing the letter….let’s just reprint it here. He does a nice job of discussing 2006, and where they plan on being at the end of 2007. 

Dear Shareholder,

I’d like to update you on the outcome of 2006 and upcoming developments for 2007 for Clearly Canadian Beverage Company.

First, I would like to personally thank you for your interest in the company and for your continued support.

Throughout 2006, we analyzed each phase of our business practices as well as the alternative-beverage and snack industry.

That has allowed us to enter 2007 debt free and with $5 million in cash. More important, the groundwork has been laid to expand into the organic product areas.

Clearly Canadian to launch new products…

On January 25, 2007, we will be launching our new enhanced waters, promising a new era for Clearly Canadian beverages.

Our 2007 goals for Clearly Canadian…

• Continue to develop and strengthen our management team.
• Actively pursue acquisition opportunities to strengthen our foothold in the beverage sector and diversify into the complementary organic snack sector.
• Develop new and improved formats for delivering our core line of sparkling flavored waters to consumers.
• Explore licensing agreements for including our name on a variety of other products.
• Expand our business in Asia.

As we study our new plans we are mindful of being part of a $21 billion industry that includes Monster(R), Red Bull(R) and vitaminwater(R).

Clearly Canadian Beverage Corporation is set to capitalize on this market opportunity with all of the steps that were put into place in 2006, including:

• A foundation for a strong distribution network
• New products
• A strong balance sheet
• Streamlined operations

We are committed to building market share and brand awareness for our products, returning to profitability and growing shareholder value.

Sincerely yours,
Brent Lokash
President

P.S. In conjunction with the launch of our new product lines, watch for the release of a Clearly Canadian video featuring two-time NBA MVP Steve Nash and a Nash promotional contest. To preview the video, go to www.clearly.ca on January 25, 2007.

Yesterday we brought up the possibility that Titan Global Holdings (OTCBB: TTGL) heroic rally was possibly going to falter, as it had left a (relatively) big 4 cent gap when it opened so much higher on Tuesday.

It’s not that it would have been that big of a deal if it happened - it was only the four cents between $1.26 and $1.30. A pullback wouldn’t necessarily unwind all of TTGL’s chart momentum established over the last few weeks. The worry was that such a dip, slight as it may have been, could have inspired a panic. If the wrong traders get nervous at the wrong time and start bailing out of a stock, it could actually turn a short-term blip into a long-term headache.

Well, you don’t have to worry any more. The concern over whether or not the gap will be filled has been answered…..it was filled a few moments ago when TTGL hit $1.25. Better still, it doesn’t seem to have jump-started a selling spree. The stock has stabilized pretty nicely, despite volume being greater than average behind this profit-taking. 

So we’re home free? We wouldn’t say that just yet. The day isn’t over, and a lot can happen in the meantime. A strong close today is going to say a lot….so will a weak one. Given our druthers, we’d prefer a close on the upper half of today’s bar. Otherwise, we feel there’s a little more downside risk we’ll be contending with.

With all this in mind, our bigger-picture opinion of Titan’s per-share value doesn’t change.

If you haven’t gotten a chance to look at a Clearly Canadian (OTCBB: CCBEF) chart lately, you might want to. As we mentioned a few days ago, the stock was on a path to break past a critical resistance line. If it did, it could possibly open the upside flood gates, so to speak.

As of yesterday and today, shares are right there…just pennies away from a potential breakout.

To jog your memory, we first presented the idea on January 10th, in a regular newsletter edition. At the time, it appeared as if CCBEF shares might be completing an upside-down (bullish) head-and-shoulders pattern. It would be complete - and confirmed - when and if the ‘neckline’ at $2.80 was finally breached. Well, the stock reached $2.84 on Tuesday, and traded as high as $2.81 (so far) today. That’s not a broken neckline per se, but boy is it close.

The reason we bring it perhaps a bit early? Because waiting for a sure thing may be too late. I suspect there are a few speculators already in a new trade based on the move from $2.56 on the 10th to the current price of $2.81…an 8.5% gain (you can thank us later). No, the pattern is not yet complete, and may never be. But the odds of an upside and the potential size of the gain may now be justification of the risk.

As for us, our official trading alert is in alignment with the sentiment, if not the time frame. We have a ‘picked’ date of March 16th, 2006, when shares were at $2.55. It’s been a wild ride between then and now, but our target of $5.15 still stands. And, based on the current chart, our optimism is growing by the minute.

They released the data last night. We published our thoughts on the quarterly results this morning. But if you’re still looking for more, then we encourage you to participate in Titan Global Holding’s (OTCBB: TTGL) conference call this Friday, January 19th, at 1 PM EST.

We’re sure the same information we laid out will be reviewed, but we suspect there will be some detail added about the company’s six divisions, and what the future may hold….near term, and long term. CEO Bryon Chance will be leading the conversation.

There will also be a chance to ask questions.

To listen in, callers within the United States can access the conference call by calling (800) 230-1085; when prompted tell the operator you would like to connect to the ‘Titan Global Holdings conference call.’ International callers can dial (612) 288-0340. An online audio web simulcast of the call will also be accessible at http://www.trilogy-capital.com/tcp/titan/.