Dow Jones 0.00 +0.00 12:25 pm PST, February 26, 2007 NASDAQ 2500.15 -14.95 For info, visit access.smallcapnetwork.com S & P 500 0.00 +0.00 Change your subscription status here Russell 2000 822.39 -4.25 VOLUME 07: ISSUE 23 Clearly a Breakout On Friday afternoon, as I was thinking about what to cover in this past weekend's edition of the Small Cap Network Newsletter, I opted for Titan Global's (OTCBB: TTGL) revised guidance news. However, it could have just as easily been today's edition. In fact, this write up was already completed at the time. I debated holding off another couple of days on this one to let you guys digest everything, but frankly, I'm convinced time is of the essence. So, here's our latest take on Clearly Canadian's (OTCBB: CCBEF) chart - I just can't wait any longer, and I don't really think you can either.  We hope you were listening back in January 10th, when we were pounding the table on Clearly Canadian's shares. Trading around $2.42 at the time, the current level of $3.20 translates into a 32.3% gain since then. Pleased? Yeah, but that in itself isn't really enough to get this edition out in such a hurry. No....we're mostly interested in making sure you've seen what the stock has done in the last few days. From our point of view, shares are starting to get some serious traction in the wake of a breakout move above September's high of $3.21. The good news is, we feel there's still plenty of road ahead on which to use that traction.....were guessing at least another 60.9% gain from here (and that's being conservative).    The Chart's Starting to Mirror the Company's Success Here's the deal - you may recall we've been following CCBEF pretty closely for months. Back in November, the chart may have not looked all that compelling, but you know how we feel about timing a stock purchase....sometimes, the best time to buy a stock is when no one else seems to want it.  Of course, we'd also been following the underlying corporate story. The company was going through a major reinvention, including the following.....      January 17th, - New Distribution Strategy  January 25th - Launch of Enhanced Waters  February 7th - Acquires Organic Snack Food Company DMR Corp.  In the meantime, we've become convinced they're going to be able to do exactly what they said they would.  The thing is, when the stock looked like it had made a bottom just a few days before the news started to ramp up again - retelling the story of the brand's revitalization - we had a feeling things were about to heat up.  Sure enough, the stock started to pop, leaving us with a growing number of technically-bullish signals we want to really explore today.  By the way, though this look specifically focuses on CCBEF shares, you may want to tuck the hints away for future reference. They appear to be nearly-perfect examples of some of the key things we think most traders look for in a good trade.    Three for Three In the interest of brevity, I'll only use one daily chart to highlight the three key short-term reasons we see even more upside for CCBEF right now. I view each of them as being important on their own, but seeing them all simultaneously on the chart is likely to pack a little more punch with other investors (and entice them into becoming owners).  Huge Volume. We loved the big surges in November and January, but the volume behind those rallies doesn't really compare to the kind accumulation we've seen over the last few days. Though we saw similar volume levels for a while with the January move, it wasn't as consistently bullish as it is now.  Could this be institutional ownership? Possibly. In general, most funds can't/won't own a stock under $2.00, so this shouldn't have necessarily been a barrier for big-player ownership. However, we have to think $3.00 may also be a cut-off point for some funds and pensions, so maybe this new pricing puts the company on some new radars. Either way, we're seeing a lot of heavy buying here we didn't really see before.  Cross above the 200 day moving average line. We really don't look at it too often here in our newsletter, but we can't deny the fact that other traders do. The big move to $3.05 in January carried CCBEF shares past the 200 day line - a huge technical buy signal for many investors. Though they slipped a bit through early February, they've more than rebounded since then. This second move above the 200 day average line is likely to be very convincing to many potential owners that the stock is getting ready to make another run.  Higher highs and higher lows. I'd say this is about as straight-forward as it gets. CCBEF shares appear to have fully broken the 2006 slump by logging a couple of sets of higher highs and lows since November. We'd consider today's peak of $3.23 a breakout move. A fancy or complicated indication? Nope, but I'd say it's important all the same. The end result is a bullish MACD crossover.  All in all, our case for Clearly Canadian should be pretty clear - based on our interpretation of the chart, the interest and momentum seems to be quite different now...for the better. I think the strong move over the last three days is possibly just the beginning of something even bigger. So, if you weren't on board as of our January 10th edition, consider this a strong reiteration of the idea. We don't think it's too late, though we do think it could be too late pretty soon.  However, there's still one last look we want to take....    Deja Vu This may be a little tougher to follow, but we see a lot of similarities between the current chart and the one we were seeing back in early 2006. The reason it's a particularly big deal to us? Because once the stock got back above its 200 day average line in October of 2005, it ran from $1.95 up to last June's high of $4.55.... a 133% gain for anybody who perfectly timed their trade, but still a relatively big win for anybody who got involved in only a segment of the uptrend. So, to see CCBEF shares power their way back above the 200 day average again - we think at the very least - forces us to consider the kind of potential this signal has this time around.  The other parallel is in the volume pattern.  Though shares flew to $4.55 in June of last year, it took a little bit of rocking earlier in 2006 to get the rally started. Look back in March, early May, and late May/early June of last year. The overall trend was bullish, but we still saw minor pullbacks during that period. Each one, though, was met with a rebound.  Now, look real closely at the volume behind each of those rebounds. The three big recoveries from the three major dips were all on progressively bigger volume. By the time the third rebound was completed, a monster-sized rally was imminent.  Fast forward to today. See anything familiar? The November dip was countered with pretty strong volume, as was the December pullback. The same goes for the January lull...the rebound volume was huge. Could this be a parallel to 2006? Obviously there are never any guarantees, but we'd have to say the scenarios are way too similar to brush off. Maybe CCBEF is just one of those stocks that needs a little rocking before it gets going.  After weighing it all - the charts as well as the underlying story - I have to think Clearly Canadian shares have a great shot at turning these recent pockets of strength into something a heck of a lot bigger, soon. The stock took a lot of investors by surprise in June of last year with a major rally, even though many of the classic technical signs were in place well in front of the move (with volume being a big one). I think we're seeing some of those same signs now.  My biggest fear is that one of these 2007 surges is eventually not going to be met with a pullback of any size - perhaps a lesson learned in late June of 2006. That's why I think getting this edition of the newsletter out today was so important. Only time will really tell if my worry was merited....maybe we'll ease back a little tomorrow, or maybe all week. Given the persistence of the buyers though, in my opinion, the mistake an interested investor could make may actually be in waiting.  Our suggested target remains at $5.15. However, we're still kicking around the idea of raising it, if that tells you anything.      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 Stockgroup's 'StockHouse.ca' Ranks #1 in Canadian User Page Views This is the kind of stuff we're talking about when we say Stockgroup Information Systems (OTCBB: SWEB) looks like they're doing the right corporate-level things to make their stock an attractive investment. Today they announced they ranked as the top Canadian site in terms of pages-viewed-per-visitor. And just for some perspective, that's not number one among Canadian financial websites....that's among all Canadian websites.  The implication is quality of traffic, and depth of use. The site's not just randomly catching casual passers-by. Instead, StockHouse.ca (or StockHouse.com for the U.S.) is attracting a crowd and keeping them involved. THIS IS THE KIND OF TRAFFIC ADVERTISERS LOOK FOR. With all those same eyeballs viewing page after page, eventually, one of those banner ads or links is likely to create a click....much more so than a casual glance at a random news page would.  More clicks means more advertisers, and more collected ad placement fees. Eventually, we suspect shareholders will be the beneficiaries of Stockgroup's impressive results.  And if you want more proof that StockHouse is indeed a higher quality site in terms of user interest (i.e. length of time the site is browsed per visit), chew on this....the average StockHouse user spends five times as much time on StockHouse.ca as they do on competing sites Yahoo! Canada Finance and Sympatico-MSN Finance. These same users view 50% more pages than they do on competing sites.  Again, it goes back to quality. The more engaged the users are, the more StockHouse can charge in advertising fees.  For more on the announcement, click here.   Web2 Corp Now Using Chamber of Commerce as Ally Looks like 'bricks and mortar' has switched to 'clicks and mortar' for Web2 Corporation's (OTCBB: WBTO) Chamber of E-Commerce. Already expanding the customer base of its easy-website-building offer, Web2 announced they're now going to try and get local Chambers of Commerce in the United States to help support the proliferation of the service. By giving local Chambers free use of the site-building tool (and free hosting) for their own sites, the company hopes to showcase what they can do through one of the most legitimate organizations in any community.  We like the idea - a lot. Though we don't have any specifics on the number of Chambers there are across the nation, we know it's in the thousands. And, each of those Chambers is closely involved with potentially hundreds - if not more -of local businesses also looking to gain credibility. We just see this tactic creating massive interest in Web2's E-Commerce solution.  And from the looks of the stock's chart over the last couple of days, we don't appear to be the only ones thinking like that. We mentioned on Friday WBTO looked like it was finding support at $1.42, and later in the day, it rallied sharply up to a close of 1.71. Today we're seeing great follow-through, and it looks like the buying volume is going to be even stronger today. We think this may well be 'round 2' of the any bigger picture uptrend; the last surge from early December started out a lot like this one....out of nowhere. Once the 20 day average line was crossed though, this thing didn't look back until it had more than doubled. We're not saying we're due for the same again, but we are saying we like what we see so far.  Subscribe Information is power and timely information is profitable. Become informed and profit from Small Cap Network Profiles and Trading Alerts by becoming a Preferred Member today. There is no cost associated with your email subscription. Add your email address below and make sure to check your email inbox and confirm your opt-in request to start receiving the Small Cap Network Email Newsletter on a regular basis. To ensure newsletter delivery, you can add any additional email addresses you may have to the Small Cap Network Member List. Receiving the Small Cap Network Newsletter in multiple locations is the best way of making sure you don't miss the next investing or trading opportunity! For web based email addresses, the Small Cap Network recommends @yahoo.com or @aol.com for timely and reliable email newsletter delivery. 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All companies are chosen on the basis of certain financial analysis and other pertinent criteria with a view toward maximizing the upside potential for investors while minimizing the downside risk, whenever possible.  Moreover, as detailed below, TGR accepts compensation from third party consultants and/or companies, which it features in the publication and circulation of SCN. To the degrees enumerated herein, SCN should not be regarded as an independent publication.  Click Here or go to http://access.smallcapnetwork.com/compensation_disclosure.html to view our compensation on every company we have ever covered, or visit the following web address: http://access.smallcapnetwork.com/profile_disclosure.html for our full profiles and http://access.smallcapnetwork.com/short_term_alerts.html for Trading Alerts.  On January 19th, 2007 TGR Group LLC entered into an agreement with Stock Group Media, Inc. 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