Looks like the folks who were making a bet that Bernanke would cut rates by 1/4 of a point were spot on. The Fed Funds futures said the odds were 75% that we’d see the Fed’s key interest rate drop to 2.0%, and sure enough, that’s what we got. That’s also probably all we’re going to see in a while. The market liked the idea of the cut, then processed the reality - it may be the last we’re going to see in a while. It ended up being a fairly uneventful day stock…slightly bearish.

My take - it was the right move. If a Fed Funds rate of 2.0% can’t get the economy breathing again, 1.75% or 1.5% isn’t going to either. Now all we can do is wait. For those of you who want more interest rate cuts, bear in mind it was Greenspan’s relentless rate cuts that ultimately set up the housing bubble…because money was too cheap and too easy.

For those of you who were concerned, my luggage made it back home with me safely (and even on the same plane as me).

As far as the trip goes, it was a productive one. I don’t know exactly when we’ll actually get the company name out to you. They’re trying to coordinate some things, and we want to see those fall into place before we pull the trigger and recommend it as a small cap stock pick. I suspect it will still be a few weeks off. In the meantime, here’s another hint…they’ve got some serious star power.

That being said, we’ve got another small cap stock pick right around the corner. I’m looking for that one to be presented to you guys sometime next week. In a nutshell, they make data transmission over the Internet even faster. The broadband bottleneck is a growing problem that is not only significant, but also preventable. This company is designing solutions to the problem.

From our small cap world…

StockGroup (SWEB) announced this morning Theresa McVean has been named the VP of Advertising Sales. Tons of good experience…managing director of online sales at the Toronto Star, a senior level job at The Globe, and the Interactive Advertising Bureau.

SpongeTech’s (SPNG) stock popped yesterday following Tuesday’s news of a $7.5 million order. Delayed reaction I guess.

In any case - and as I’ve said numerous times now - I think this small cap company is one of our best bets right now. We’re back above the 200 day moving average line, and made a higher high today (of 4.65 cents). If we can get to 5 cents, I think this thing could blast off. It’s one of the few companies putting their money where their mouth is, and growing the top and bottom lines.

By the way, did you see their latest news (from this morning)? Their sponsorship of a New York Mets game has already started to reap rewards, even though the game isn’t being played until May 13th. How’s a future game driving results now? The sponsorship package includes radio ad spots before the game….and they’ve already started.

The word is, those radio advertisements have caused their website’s traffic to increase by 250%. Given that you can order sponges via the site, this could add another incremental layer of sales.

Though it’s not a small cap name, Telemig Celular (TMB) is still one of our stock picks…one that took flight yesterday with a 6.0% gain. TMB shares are now at new 52-week highs, alleviating my concern from a few days ago that the trend had stalled.

As of right now, our gain on the Telemig pick is about 15%, and we’re roughly halfway to our target price of $79.20. I feel much better about this trade now.

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