Dow Jones 9884.31 +27.34 6:47 am PST, November 07, 2003  NASDAQ 1986.76 +10.39 For info, visit access.smallcapnetwork.com S & P 500 1060.29 +2.23 To be removed, please click here Russell 2000 542.94 +0.00 VOLUME 03: ISSUE 69  Trading Alert: C-CHIP Technologies. Lojack with Attitude. We strongly believe that C-CHIP?'s  (OTCBB: CCHI) prospects in particular, and those of the telematics sector in general, offer superior potential for both short- and long-term gains. C-CHIP? produces a cutting edge wireless, web-based set of communication tools that offers business users remote access, control, and monitoring of a wide range of assets, including vehicles, office equipment and industrial machinery. It allows selective enabling, disabling and many other features, from anywhere to practically anywhere in North America using the Internet. Applications for the C-CHIP? technology offers significant opportunities within the markets for credit, security and asset management solutions. For background on the telematics sector --also known as sensor technology or M2M  (machine to machine)-- see Tuesday's backgrounder article. An excerpt from that piece: A symbiosis of telecommunications and informatics, telematics involves the integration of Global Positioning System ("GPS") satellite technology and wireless communications technology... The entire telematics market, according to industry analysts Gartner Group, is expected to top $27 billion by 2005 and $100 billion by 2010. And where, other than autos, will one find these chips in the future? Just about everywhere. Risk-oriented investors should seriously consider accumulating the shares of telematics firm C-CHIP Technologies at these levels. As the volume has already topped 2 million this week, a significant number of investors are already in the process of establishing positions. C-CHIP? went public in January 2003. The stock is presently trading between 80-90 cents and appears to have broken out into a new up-trend. There are approximately 37 million shares outstanding. It is for all the following reasons that we feel a position in C-CHIP? makes sense for those investors interested in cutting edge, highly competitive products currently being released into a huge and growing market. Salient points about C-CHIP? for investors' consideration: C-CHIP? has initially targeted its state of the art products to the massive yet under-served automotive telematics sector, which has demonstrated a need for more robust and lower cost theft protection (average US auto losses of $8.2 billion per year and growing) and asset monitoring systems.  US fleet automobile telematics penetration is currently less than 5%. Globally, insurance companies are increasing their demands for on-board vehicle location devices. C-CHIP?'s 'stripped down' technology allows significantly lower price points than competitors--its wireless units combine high functionality with small size. Unique asset deactivation functionality--where applicable-- is web-based, not network-based. C-CHIP's corporate focus on gaining significant and diversified market share in the office equipment and industrial machinery sectors as well as the auto sector. Consumer credit quality is deteriorating, evidencing the growing need for solutions to lower delinquencies. C-CHIP?'s products are applicable to virtually any financed asset, be it a Porsche or a cell-phone. Business is assets. The protection and monitoring of those assets will grow exponentially as the telematics sector grows to a size in excess of $100 billion dollars by 2010 -- according to industry analyst McKinsey. Those are Billions. With a 'B'. Currently, competitive telematics products offered tend to be high cost and come with ongoing fees attached. C-CHIP? has developed a suite of 'stripped down' products that are low cost, small in size and, except in the case of its Tracking Manager product which has a pay per use feature, have nothing approaching its competitors' ongoing fees. C-CHIP? intends to follow a multi-year business plan that will eventually see it develop a diversified mix of products split equally into three sectors: autos, office equipment and industrial equipment. Products have also been developed for Asian and European markets. Think Global.... Existing systems, such as LOJACK? (NASDAQ: LOJN) are US vehicle location systems that tell police or an insurance company where a stolen vehicle is located. To work effectively, everyone needs to be on the Lojack system.  C-CHIP? is significantly more robust and is, as well, web-based. There is no need for a specialized network system: the appropriate authority can locate and disable a C-CHIP? enabled vehicle--or other asset --by way of the Internet. Other competitive location systems--such as LOJACK-- aren't much good should the vehicle or other asset, once located, have the ability to stay 'on the move'. Currently, C-CHIP? has three products ready for market. Substantive discussions going on with large potential users, both within the automotive sector and with office supply companies, industrial machinery producers and credit facilitators. A deal was announced in April 2003 for an initial shipment to Pay Technologies LLC of 10,000 units over 12 months of C-CHIP's Credit Manager product. Credit Manager: a one way communications tool that allows users to activate or deactivate an asset from practically anywhere in North America. This virtually ensures timely payment of finance and lease charges under fear of deactivation. Reports project this type of technology could reduce delinquency by 90 percent. Credit Manager can also be embedded in anything financed, from a Porsche, to a laptop, to a wide screen TV. Unit cost is $175-$185, slightly below competitors' prices. Expect the price to go lower as distribution rises. Tracking Manager: same functionality of Credit Manager, but can be configured with two-way communication, GPS locator and monitoring. Wide application for fleet and insurance companies because the device offers deactivation ability, location and abuse monitoring--excessive speed, for example. Unit cost is $299, priced roughly 25 percent below competitive products. Access Manager: A simple RFID (Radio Frequency ID) product that utilizes a key chain transponder that must communicate with a vehicle's numerous kill switches. Therefore, if anyone other than the authorized user attempts to compromise the asset, the car won't start. This product has potential application to the entire automotive and industrial vehicle market as a low cost, simple theft deterrent. Unit cost is $200. The only comparable is a wired product at  $350 per unit. The C-CHIP? Access Manager is wireless and therefore more useful as a theft deterrent: there are no wires to follow allowing thieves to disable the unit. C-CHIP? is not simply a three trick pony. The company continues R&D development but has now moved into the sales and distribution phase to capitalize on its cutting edge technology for itself and its shareholders. The company is engaged in developing and refining its technology to produce products for niche markets, which, in their totality, are huge. Discussions are ongoing with customers and distributors; substantive deal announcements are anticipated. The company announced on Monday that it had secured a $1.4 million financing --the proceeds of which should see the company through to significant revenue generation. The equity financing also included a two year, $1 per share warrant that, if exercised, would yield a further $2.52 million in financing. The potential for C-CHIP?'s applications within an enormous--and growing--telematics market is significant. An initial purchase based on the company's prospects prior to more deal and revenue announcements could yield risk-oriented investors the best returns.  Think Lojack?. Then realize that C-CHIP? is better and has way more telematic applications than just vehicle tracking. Besides, Lojack is trading at $7--the same price it was 10 years ago. C-CHIP? trades at 90 cents and is on the threshold of significant market penetration. Which has more potential? You get one guess. We will be following this innovative technology company's progress and will report news and milestones met as C-CHIP? executes its business plan.   MARKET NOTE Kudos to those readers who acted quickly on our recent BioCurex (OTCBB: BOCX) Trading Alert. Significant volume ensued and early purchasers saw shares purchased in the low 20 cent range move up to a high of 42 cents a few days later--more than 100 percent return in a week. The shares have settled back to the 30-cent range with significant daily volumes evidencing that the company is continuing to garner significant interest. The shares have demonstrated outstanding two-way trade. We have great confidence in this one as we get closer to licensing agreements and new patents announcements to augment those already secured in the US. We continue to suggest accumulation of the shares in the 25 to 35 cent level. Excerpt from our Biocurex Trading Alert: Here's the second potential bolt of lightning: a purchase of the shares of cancer detection concern BioCurex (OTCBB: BOCX), currently trading at 16-17 cents, has, we strongly believe, the potential to return handsomely over the next 12 months. Our buy range would ideally be below 20 cents, but should the shares move into the low 20-cent range, purchases should still be made, given, as you will see, the potential of the company and its technologies.     Take Advantage of a Special Opportunity. Get on Board our new Preferred Member List NOW, it's FREE! Important Note: This exclusive opportunity is FREE to all current SmallCap Digest readers. Now is your opportunity to join FREE and become a charter member of the SmallCap Digest Preferred Member Program. Need details? Read on... For over two years now, the unique approach of the SmallCap Network has alerted our readers to significant small and large cap profit opportunities, as well as extremely useful educational articles, market direction calls and trading strategies that have--and will continue to-- protect capital and enhance portfolio returns. Questions regarding our knowledge and ability to perform within the market? Review our archives and track record. 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