Dow Jones 10667.39 -213.32 4:15 pm PST, January 21, 2006  NASDAQ 2247.70 -54.11 For info, visit access.smallcapnetwork.com S & P 500 1261.49 -23.55 Change your subscription status here Russell 2000 704.60 -10.34 VOLUME 06: ISSUE 6  Feature: Whatever Happened to Clearly Canadian? Sell Your QQQQ Puts. The premier beverage innovation company of the 1990's has been relatively quiet for the past few years. We believe that that trend is about to change in a very big way. Clearly Canadian (OTCBB: CCBEF), an icon of what is now categorized as the New Age Beverage sector has completed an aggressive restructuring and is set to launch several exciting new products in 2006. Further, the Company still enjoys 80 percent brand recognition in the US on its flagship Clearly Canadian brand flavored waters (which have sold over 1 billion bottles). We've been watching the progress of Clearly Canadian for a while now and think that investors would be well advised to put the ticker on their watch list.  By 1992 Clearly Canadian had 15 million shares outstanding and sales topped $187 million. The share price moved from pennies in 1989 to $27 (pre splits) by 1992. Since then the shares have been rolled back twice resulting in a tight current structure of just under 7 million shares and a current price of around $2.25--resulting in a market cap of just under $16 million. Could lightning strike twice? We believe so. We feel that as Clearly Canadian sales gain momentum share price performance could well match or exceed that previous impressive rise. The Clearly chart looks quite constructive. With the good consolidation after the latest run-up on decent volume, stocks with this type of pattern tend to break out to the upside. Over the past two years, Clearly has completed a major corporate restructuring and plans to re-take its place as a major participant in this high-growth, high margin consumer sector. Since the inception of Clearly Canadian in the late 1980's, the Company has sold over 90 million cases or 2 billion bottles worldwide. The highly competitive New Age Beverage segment comprises 11 different categories; premium soda, sparkling water, sports beverages, single-serve bottled water, regular and nutrient-enhanced ready-to-drink tea, nutrient-enhanced fruit drinks, regular single-serve fruit beverages, ready-to-drink coffee, vegetable/fruit juice blends, and energy drinks. The market for these drinks, including non-carbonated offerings, is approaching $21 billion annually and the exponential growth of the past few years shows no sign of abating.  We feel that the new Clearly Canadian will be successful in attaining significant market-share in the sector both for its core brands and new product offerings. Why the robust growth? Simple. We're drinking smarter. Apparently tired of the dominance of Coke and Pepsi et al, consumers are actively seeking out those products with distinctive value added ingredients and taste. With all the press regarding the health downsides of drinking traditional pops and colas, healthier alternatives have become aggressively sought after. These beverages include those with lower carbohydrate profiles, premium ingredients (including organic) and good tasting alternatives to the ubiquitous high sodium and sugar drinks, which have historically dominated the markets. Other premium names in the sector include Jones Soda (NASDAQ: JSDA) and Hansen Natural Corp (NASDAQ: HANS) with market caps of $138 million and $2.1 billion respectively. Both have had great success in the sector over the last half-decade.  Jone's share price has more than tripled to $6.50 in the last two years with a period high of $8. Hansen's move in the last two years has been nothing short of breathtaking coming from a single digit share price then to $95 (post a 2:1 split in 2005) today.  We believe the impressive share price performance of these two peers gives us a picture into what could be in store for shareholders of Clearly Canadian. Given those performances and the ongoing growth of the beverage market, both the sector and especially Clearly Canadian are well worth following; especially due to the beaten down share price, established name recognition and pending new product launches. Clearly has a long history of successfully delivering products to market that are both exciting and revolutionary. Clearly virtually started the trend to New Age or what are also referred to as 'Alternative' beverages. Jone's and Hansen's success and continued growth is testament to the vitality of the New Age Beverage phenomena and bodes extremely well for Clearly Canadian as it brings 20 years of successful product innovation to the sector and re-establishes itself as a major force. Clearly Salient Points: 80 percent US consumer brand recognition of Clearly Canadian. $21 billion market for New Age beverages and growing. Successful 20-year history of innovation of product and packaging. Clearly Canadian to re-launch its full line of Sparkling Waters. New products scheduled for release in 2006. Clean balance sheet. Fixed costs significantly reduced and controlled. Company re-capitalized with a recent cash infusion and potential $43 million financing. Significant marketing and promotional focus through system-wide distribution agreement with mammoth Dr.Pepper/7-Up group. Intends to aggressively expand private label business. Intends to acquire licensing agreements for the Clearly Canadian brand. Continues to expand global distribution network. New management team. Strong product research and development. The two major avenues for success in the beverage sector are innovation and distribution. The Company intends to expand its distribution arrangement with Dr.Pepper/7-Up as well as access more channels to increase sales of its products. The growing availability and success of Clearly in the populous California/Nevada market--among others-- through this relationship evidences both the popularity and overall recognition of the brand. We expect the Company will be successful in establishing further robust distribution channels through 2006. As the once dominant force in what is now termed the New Age Beverage sector, Clearly Canadian, under its new management team will meet the competitive challenges by focusing on products, exploiting its aggressive restructuring and re-launching new and existing brands.  With a strong balance sheet and a brand recognized by eight out of ten consumers, the stock is definitely one that investors should put on their watch list as the story unfolds.  Lightning can indeed strike twice.   Sell your QQQQ Puts. Now. Speaking of lightning, the market took a bolt to the chest, Friday.  We originally suggested buying some of the QQQQ March 42 Puts at 55-60 cents on January 11th to take advantage of the downturn in the NASDAQ we saw coming. On January 18th we recommended that you sell some or all of those Puts at 90-95 cents for an almost 50 percent gain. If you wanted to hold some or all of them longer, we suggested that you sellout any left should the put price cross $1 per contract.  Courtesy of the Friday market rout the QQQQ March 42 Puts closed at a very nice $1.45 a contract. Since options are for a good time, not a long time, sellout any of these puts that you may have left into Monday's market. There could be a further gap down or a bounce--we'll have to wait and see. Since readers who bought in early and held now have a 100 percent-plus return in less than 10 days, our measured opinion is simple: take the money and run. Clear? We'll update on the market direction once the dust settles.   We Value Your Feedback Got comments, questions or suggestions? Send 'em on over: Editor@smallcapnetwork.com If you wish to send a written request or inquiry, please send it to our physical address: TGR Group, LLC 4653 Carmel Mtn Rd Suite 308 #402  San Diego, CA 92130 Subscribe Information is power and timely information is profitable. 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