Dow Jones 12527.26 -49.18 1:07 pm PDT, April 9, 2008 NASDAQ 2322.12 -26.64 For info, visit access.smallcapnetwork.com S & P 500 1354.49 -11.05 Change your subscription status here Russell 2000 699.36 -12.56 VOLUME 08 : ISSUE 35 In This Edition...  If you've read the blog any at all this week, then you already know it's been a busy three days. I'm going to condense as much as I can into today's edition - just the stuff you 'need to know'. Specifically, I want to look at...  How to navigate - or not navigate - this volatile market  SpongeTech's recent visibility campaign (in the sidebar)  Spicy Pickle's chart cleaned up a nagging issue  Today's news from Applied DNA  I think those are the biggies. However, I had to leave out my thoughts on Citigroup's (NYSE: C) decision to dump $13 billion worth of leveraged buyout loans. They're in the blog though, along with some other stuff.    How I'm Dealing With All The Volatility If you've been reading my morning comments in the blog, then you already know what I'm currently expecting from the market....two or three steps forward, then two or three steps back. The net result is a wash, but those two to three steps may be trade-worthy. This is what the market has given us for about three months now. In fact, I've been publicly tracking one of my recent personal trades - my purchase of QQQQ April 47 puts (a bearish trade), which I bought at $1.84. My rationale was simple enough...the bulls just got carried away last Tuesday, and pushed the QQQQ's to what I though was their limit. Technically I could have gotten a slightly better price a couple of days later, but not significantly better. So why did I bet against the market's apparent trend? There are a couple of reasons. First and foremost, habit. The market is, for the most part, caught in a range. We've not seen a breakout in three months; why would this one be different? (Just for the record, all of the recent rallies and pullbacks looked just as suggestive of 'more of the same', but there's been zero follow-through). The second reason? The market just can't justify any meaningful price appreciation right now. I know, I know...how very fundamental of me (or how very un-trader-like). Though I'm a trader at heart, I'm not oblivious to the fact that the majority of the market uses a valuation approach to price stocks. With Bear Stearns (NYSE: BSC) obliterated, Citigroup (NYSE: C) jumping at the chance to dump worrisome debt, and two past Fed chairmen both less than warm-n-fuzzy right now, are we supposed to think all is well? So how has the market made any gains at all? The age-old emotions of fear and greed - that's how. Those can propel the market for a few days before fading. Then, it's back to perceived valuations. Anyway, my put options are up a little bit right now. I'm basically planning on a couple more down days - tops - before greed kicks in again. When will this short-term gyration end? I don't know, but I'll let you know when I think it has.    Spicy Pickle Cleans Up Some Loose Ends Unlike the market, the last three days have actually been pretty decent for Spicy Pickle (OTCBB: SPKL) shares. On Friday they closed at 70 cents, but have moved back up to the 75-cent-ish area. It's not a huge reversal, but one I want to keep following. So what was going on with Spicy Pickle during Q1 in the first place? A lot of restricted shares because unrestricted. I don't know if all the would-be sellers are done yet, but I do think a big chunk of them are done.  Why are they selling here? Their cost basis is still well under current levels. I personally think it's a mistake to get out now, as the company is still growing. But, that's their decision. As for the 'all clear' sign, I think the chart will actually tell us when the selling barrage is over. This week might be an early sign of that, though it's still far from enough evidence for me. That said... I don't think it's even a small coincidence the stock perked up just as the only remaining chart gap was closed. Between September 21st and September 24th, we saw a gap from 71 cents to 75 cents. It's been nagging at me ever since. Well, no reason to worry any further...the gap was closed on Friday; there are no gaps left. I know it "shouldn't" matter, particularly if stocks are valued based on company performance. I think we all know that's not how trading works though. Even fundamental investors should be relieved this looming threat has been taken out of the equation.   Applied DNA: Validity x 2 On Monday I mentioned Applied DNA's (OTCBB: APDN) order from chemical company Rhodia was a big deal, not so much because of the dollars involved, but that it was a high profile deal which really validated APDN's technology. Today, the company made two more check marks in the validity column.  In short, Applied DNA has shipped two re-orders. By that, I just mean two of their customers came back for more of what Applied DNA sells. One was a third order for DermalRX, and the other was a second order for Signature DNA (tm) to be used in a cash-in-transit company's cash boxes. I'll re-ask my rhetorical question...why do you think they're ordering seconds and thirds? I think the answer is the simplest one - because there's a real and renewable market here. If the customer purchasing the DermalRX ends up taking their in-development product to the market using Applied DNA's ingredient, it's likely to be huge renewable business. Rhodia's and PrintColor's business is renewable as well. IIMAK's would be too. With ongoing re-orders like these, it really wouldn't take much for Applied DNA to reach critical mass and become self-sustaining. They've only scratched the surface of the potential market; I just think they need a little time to cultivate it now that the product is commercialized. The press release is below.    Applied DNA Sciences Ships Additional Orders for SigNature DNA and DermalRx  STONY BROOK, N.Y., April 09, 2008 /Business Wire/ -- Applied DNA Sciences, Inc. (OTC Bulletin Board: APDN), a provider of DNA-based security solutions, today announced that it has shipped follow-on orders of SigNature(tm) DNA and DermalRx(tm) in the second fiscal quarter of 2008 which ended March 31, 2008.  "We believe these orders are significant steps forward for both the company and the technology," stated Dr. James Hayward, CEO of Applied DNA Sciences. "We feel that these repeat orders reflect satisfied customers and further market acceptance of our products. We were able to fulfill both orders within two weeks of receipt demonstrating APDN's preparedness for execution."  Within one month of shipping the first order of custom SigNature(tm) DNA markers for use in the cash-in-transit industry, APDN received a second order of SigNature(tm) DNA Markers from the same company, a world leading cash handling organization. At about the same time, APDN shipped a third order of DermalRx(tm) to its prior multinational customer developing new skin care products. Full blown commercialization of the first product is still anticipated by the end of 2008.  "APDN continues to focus its energies on developing solutions that meet the individual needs of every organization we work with, offering products customers can rely on and technology they can trust," continued Dr. Hayward. "We are pleased to have follow-on orders from two established customers, as we continue to develop new sales leads. By diversifying into these related businesses, we maximize our technical expertise and minimize economic cycles affecting any one of these businesses."  About Applied DNA Sciences, Inc. Applied DNA Sciences markets and sells DNA encrypted and embedded solutions that are forensically authenticated by machine readable devices. These solutions can be easily integrated with a range of inks, threads, varnishes, adhesives as well as thermal ribbon, inkjet and laser ink. Applied DNA Sciences' products can help protect the brands and intellectual property that can easily be eroded by counterfeiting, product diversion and fraud. APDN's common stock is listed on the Over-The-Counter Bulletin Board under the symbol "APDN".  The statements made by APDN may be forward-looking in nature and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements describe APDN's future plans, projections, strategies and expectations, and are based on assumptions and involve a number of risks and uncertainties, many of which are beyond the control of APDN. Actual results could differ materially from those projected due to our short operating history, limited financial resources, limited market acceptance, market competition and various other factors detailed from time to time in APDN's SEC reports and filings, including our Annual Report on Form 10-KSB, filed on January 15, 2008 and our subsequent quarterly reports on Form 10-QSB. APDN undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date hereof to reflect the occurrence of unanticipated events.  SOURCE Applied DNA Sciences, Inc.  -0-04/09/2008  /CONTACT: Debbie Bailey, 631-444-8090, fax: 631-444-8848/ /FCMN Contact: info@adnas.com /  /Web site: http://www.ADNAS.com /   We Value Your Feedback   Got comments, questions or suggestions? Send 'em on over: Email the Editor 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 SpongeTech's Visibility Cranked Up Never let it be said SpongeTech Delivery Systems (OTCBB: SPNG) wasn't visible; their company name and products are popping up everywhere. Let's just run down this week's list.  On Tuesday, CEO Michael Metters demonstrated the company's patented sponges on television's shopping network QVC. The product appears on a segment appropriately called 'Keep it Clean'. No word yet on the result, but the station has a very active consumer audience.  We also learned yesterday that SpongeTech's auto wash sponges will twice be the featured product on upcoming episodes of 'The Price is Right'. Not only will the sponges be shown up close on TV, but Rich Fields' voice - the announcer - will describe what the sponge is and how it works.  The upside is clear - exposure. SpongeTech's sponges are going to be shown to millions of consumers, and I suspect a lot of new ones. They're winding down their TV ads on several men-oriented networks, and now they're opening some doors to a predominantly-female audience. I think the fact that new consumers are seeing the product is a big deal.  One more item to add to the list of publicity efforts ...sponsorship of their hometown New York Yankees. SpongeTech will be giving away key-chains at the July 28th home game as part of their sponsorship package. That's hardly all they get that day though. The company's name/logo will be visible all over the stadium (inside and out), and the company will be mentioned on TV as well as radio.  We've seen hints that the recent ramp-up in marketing - which started last quarter - is indeed creating sales traction. I don't know how much revenue was booked last quarter, but I do know they'll be announcing those numbers any day now.  Just for some perspective, last quarter (which ended November 30th) they did $331K in sales. The quarter before that, they did about $64K. Between then and now, we know production and ordering has ramped up considerably thanks to a major marketing effort (see all the press releases). I have to think we're looking at a seven figure top line now...and perhaps profitability.  My lingering question - how are they paying for all the advertising and marketing? They used stock to pay advertising expenses for the prior-reported quarter. That's fine to get things jump-started, though I hope it doesn't become a habit. If they did the same this time, the question becomes one of the upside of revenue growth versus the downside of dilution. I'll keep you in the loop.    Smart Energy Partners With Major GM Upfitter Chalk up another nice win for small cap company Smart Energy Solutions (OTCBB: SMGY) - they're partnering up with Kerr Industries - one of General Motors' (NYSE: GM) key upfitters for their police and emergency vehicle lines. Smart Energy's Battery Brain (tm) will be offered through Kerr's catalog as one of the options for a first-response vehicle ordered through the GM/Kerr program.  The opportunity here is decent; General Motors sells about 20,000 emergency vehicles each year. And, bear in mind that GM is hardly the only company that sells police cruisers and other emergency vehicles.  The 'take away' here isn't just the Kerr news...at least not to us. No, the thing to keep in mind about this announcement is that we keep hearing the same kinds of announcements from Smart Energy Solutions. We're getting them at a rate of about one per month.  By the way, we count a total of 15 new partnerships and/or distributors in just the last year. That explains much of the top line growth so far. But more importantly, it also leaves plenty more opportunity for other new partnerships over the next couple of years. Here's the news. 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. 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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/ to view our compensation on every company we have ever covered, or visit the following web address: http://access.smallcapnetwork.com/profile_disclosure/ for our full profiles and http://access.smallcapnetwork.com/alert_disclosure/ for Trading Alerts.  TGR Group, LLC has been paid a fee of $30,000 cash and 750,000 shares of newly issued restricted stock by Spongetech Delivery Systems Inc. for coverage of the Company. 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