Dow Jones 10971.64 -73.64 8:46 am PDT, June 27, 2006 NASDAQ 2118.59 -15.08 For info, visit access.smallcapnetwork.com S & P 500 1245.77 -4.79 Change your subscription status here Russell 2000 697.48 -1.16 VOLUME 06: ISSUE 48 Another Slam Dunk For Clearly Canadian Just when you think a company can't top itself, wham, it happens. Well, it happens for the good ones anyway. Clearly Canadian (OTCBB: CCBEF) announced today they're teaming up with basketball legend Steve Nash, naming him the official spokesperson, as well as adding him to the company's advisory board. It's an exclusive three year deal, with Mr. Nash slated to endorse Clearly Canadian products on a worldwide basis. It's a smart move too, knowing that he's going to be more than just a run-of-the-mill figurehead. In fact, this might be a slam dunk for Clearly Canadian, but for reasons most people may not even realize.    Who's Steve Nash?  Even from just a sports perspective, Mr. Nash has a stunningly impressive resume. He's regarded as one of the great players in NBA history, but his three NBA All-Star titles have officially certified the status. Did we mention he was named the NBA's Most Valuable Player twice in a row? Don't forget that he led the Canadian Olympic team - as captain - to the quarter-finals of the 2000 Olympics in Sydney, Australia. And recently, he took the NBA's Phoenix Suns to the Western Conference finals, for the second year in a row. The compelling part of his story, though, is that he worked hard to earn everything he's achieved. Fans and followers will know Steve was usually an underdog. Concerned that he was undersized, not many NCAA programs were interested in adding Steve to the roster. Rather than give up, he used the rejection as motivation. Each rejection letter he got from a major Division I school, he filed away in a shoe box (and some say he still has them). Santa Clara was one of the schools that gave him a chance, but it was far from a top tier program. Now in addition to being undersized, Steve was an underdog. Yet, it didn't matter. The Santa Clara Broncos, under Nash's leadership, took down some major Division I schools during NCAA tournaments, such as Arizona in 1993, and Maryland in 1996. The kid who had practiced on his own into all hours of the night had also turned the head of NBA scouts. The Phoenix Suns drafted him, and the rest is history (although it's still in the making).  His status extends far beyond the basketball court. He was recently named one of the "100 Most Influential People" in TIME Magazine's annual issue. For a relatively young athlete (he's 32) to be held in that high regard is impressive. By the way, he's also Canadian. In fact, he's from British Columbia...where Clearly Canadian is based. Needless to say, the admiration for this home-town boy who made good is also a powerful marketing tool. We think the association between Steve's underdog story and the Clearly Canadian turn-around story is a brilliant way to spread some positive feelings about the company.  The point is, he's a sports superstar, and a significantly respectable public figure that has no trouble garnering attention. People know him, the public respects his ability, and most importantly, consumers are likely to respond to him when he's touting Clearly Canadian products. (Remember what we said about the influence winners can have, as discussed in the June 12th edition of SmallCap Digest.)    The Impact  There's no secret strategy here. Clearly Canadian is just following through on their renewal plans, and Steve Nash is a popular and fitting figure to help them do that. The angle of the Canadian icon endorsing the Canadian brand will certainly create a little extra buzz, which is always nice. The ultimate goal, though, is to raise the status of the company and the products. We suspect Steve Nash's involvement will do that. The addition of Steve's popularity will be particularly instrumental in new product launches, according to Clearly Canadian's President Steve Lokash. Plus, the company is looking forward to his involvement with an initiative to provide clean drinking water to underdeveloped regions in South America and Central America (see the sidebar). What does it mean for shareholders? Well, if this strategy works out as well as other recent ones have, it's going to be good news. Since our coverage started in mid-March when the stock was trading at $2.55, we've seen a 64.7% gain. Shares last traded at $4.20. As for what's going on behind the scenes to prompt that growth, let's just review some of the news that we've reported on the company. A significant reduction in the annual loss The company is to be featured in a reality TV show The addition of James Dines as Chairman of the Advisory Board Based on Brent Lokash's success with all of his other turn-around ideas, we're confident this one will work too. And Clearly (no pun intended), some other big players agree. The stock continues to see wave after wave of heavy-volume buying. The pullbacks are small, and are on light volume. Not only does that reflect institutional interest in the stock, it makes any short-term dip a nice entry point. In any case, here's the official press release:   PHOENIX SUNS' STEVE NASH TEAMS UP WITH CLEARLY CANADIAN NBA's Back to Back Most Valuable Player Accepts Pivotal Role in Corporate Turnaround Story VANCOUVER, B.C., June 27, 2006 - CLEARLY CANADIAN BEVERAGE CORPORATION (OTCBB: CCBEF) announced today that Steve Nash, two-time NBA Most Valuable Player, has entered into a worldwide product endorsement relationship with Clearly Canadian. This three year exclusive agreement names Steve Nash as Clearly Canadian's official spokesperson and appoints Mr. Nash to the Clearly Canadian Advisory Board. "I have been very selective about the companies I have had relationships with over the years", said Nash. "The Clearly Canadian relationship is a natural fit for me. Not only are we both from British Columbia, but it is a company with great products which I enjoyed while I was growing up in Canada. I was also drawn to Clearly Canadian because it is a company that understands its responsibility to give back to those less fortunate. I believe working together we can bring great exposure and results to the company's wonderful products and charitable initiatives."  Mr. Nash, a three time NBA All-Star and regarded as one of the great team players in NBA history, recently took the NBA's Phoenix Suns to the Western Conference finals for the second year in a row. He was recently named one of the "100 Most Influential People" in TIME Magazine's annual issue. His strong connection to Clearly Canadian's home country was evident at the 2000 Olympics in Sydney, Australia where he passionately captained Canada's national basketball team to a successful berth in the quarter-finals of the tournament. Mr. Nash will energize the company and support its objectives of re-establishing its core brand of sparkling flavoured waters and launching exciting new product lines. He also plans to play a significant role in supporting Clearly Canadian's recently announced Global Water initiative, in which the company aims to be directly involved in building safe drinking water systems in Central and South American villages. This initiative, which commences this year with projects in Guatemala and Nicaragua, is designed to help developing nations access safe and clean water.  Stated Brent Lokash, President of Clearly Canadian, "I cannot think of a better spokesperson for our company. Steve Nash has a reputation for superior results through hard work, dedication and perseverance. We have admired these traits for years and watched and rooted for him as he has risen through the ranks of the NBA to ultimately become a two time/back to back MVP, joining the likes of Magic Johnson and Michael Jordan." Continued Mr. Lokash, "We are elated by this relationship and believe this gives us a tremendous boost in our stated mission, to once again become a preeminent name in the beverage industry." About Clearly Canadian Based in Vancouver, B.C., Clearly Canadian Beverage Corporation markets premium alternative beverages and products, including Clearly Canadian® sparkling flavoured water and Clearly Canadian O+2® oxygen enhanced water beverage which are distributed in the United States, Canada and various other countries. Since its inception, the Clearly Canadian brand has sold over 90 million cases equating to over 2 billion bottles worldwide. Additional information about Clearly Canadian may be obtained at www.clearly.ca.  CLEARLY CANADIAN BEVERAGE CORPORATION  ___________________________________  Brent Lokash, President  Forward Looking Statements  Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expects", "intends", "plans", "may", "could", "should", "anticipates", "likely", "believes", "estimates", "potential", "predicts", "continue" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analysis and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management, including, but not limited to, the Company's belief that Clearly Canadian has the right personnel to execute on its stated strategic initiatives, including the launching of innovative new products and the leveraging of the brand equity of Clearly Canadian. These assumptions are subject to many risks, and actual results may differ materially from those currently anticipated. These risks include, by way of example and not in limitation, general economic conditions, changing beverage consumption trends of consumers, the Company's ability to generate sufficient cash flows to support general operating activities and capital expansion plans, competition, pricing and availability of raw materials, the Company's ability to maintain the current and future retail listings for its beverage products and to maintain favorable supply, production and distribution arrangements, laws and regulations and changes thereto that may affect the way the Company's products are manufactured, distributed and sold and other factors beyond the reasonable control of the Company. Additional information on factors that may affect the business and financial results of the Company can be found in filings of the Company with the U.S. Securities and Exchange Commission and with the British Columbia and Ontario Securities Commissions.  For further information please contact:  Shareholder Relations/Steve Cook  (e-mail: investor@clearly.ca)  1 (800) 983-0993  CLEARLY CANADIAN BEVERAGE CORPORATION is the registered holder of various trademarks, including CLEARLY CANADIAN®. CLEARLY CANADIAN BEVERAGE CORPORATION, and its wholly owned subsidiaries, produce, distribute and market CLEARLY CANADIAN® and CANADIAN O+2®.   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 Clearly Canadian Enters Humanitarian Partnership Clearly Canadian (OTCBB: CCBEF) has entered into a humanitarian partnership with the non-profit organization Global Water. The joint mission is to provide safe drinking water for developing nations that may not be able to do so without assistance. Funding for the initiative will come from corporate donations as well as fundraising events.  Rather than just a basic donation of water, the idea is to equip these underdeveloped nations with the tools and knowledge needed to maintain safe water systems. At this time, the primary geographical focus is on Central America and South America - Guatemala and Nicaragua specifically. Two new water systems are to be in place by the end of the year, and the current plans are to add 20 more systems by 2010.  It's certainly a public-relations win for Clearly Canadian, but it's definitely a major win for the countries in need of better water systems. So, kudos to Clearly for taking the initiative in doing what they can to improve the global community. And on a side note, companies that make a habit of corporate responsibility (like this) also tend to make a habit of strong corporate results. And there's no doubt that Clearly Canadian is firing on all cylinders right now. We've logged the turn-around saga pretty well here at SCD, but we think the best part of their story is yet to come.  Has it paid off for shareholders? Well, the stock last traded at $4.11. That's 61% better than the $2.55 per-share price we saw when we first started covering Clearly in mid-March. So yeah, shareholders are being well rewarded.    Novelos One Step Closer To Government Contract  It was only a few days ago we mentioned how news can strike like lightning - anytime, anywhere. The case in point was Novelos Therapeutics (OTCBB: NVLT). There hadn't been any news from the company in a while, yet the stock was starting to creep higher anyway. Today we found out why it pays to not try to chase the news, but rather, to own stocks that have the potential to release news that can get investors excited in the future.  The Department of Health and Human Services announced recently that Novelos' proposal for treatment of Acute Radiation Syndrome (ARS) is within the 'competitive range' among all the proposals submitted as a medical response to a 'dirty-bomb'. In plain English, it just means Novelos' NOV-002 drug is still in the running for a government contract that is expected to be awarded in September.  Don't jump the gun though. There are still other competitors for this contract, so the news may ultimately be meaningless when September rolls around. On the other hand, it could be a major boon for Novelos, as well as its shareholders. We just don't know. Then again, that's the name of the game - the big rewards are born from substantial risks. What we do know right now is Novelos shares broke past resistance a few days ago, on major volume. In fact, after reaching a low of $0.85 on June 15th, the current price of $1.06 represents a gain of 24.7%. That's not bad for less than two weeks worth of work.  Our viewpoint is a positive one, partially because of the news, but mostly because we like the company. Why not the other way around? We're fine with trading the news, if you're a trader. And there's no doubt this news is trade-worthy. But as we also said, the U.S. government has yet to award the contract. We can't base our decision on a stock simply on something that might happen. Our appreciation for the company - as an investment - is rooted in their foundational work against lung cancer and hepatitis. The possibility of a government contract is just gravy.  Subscribe Information is power and timely information is profitable. Become informed and profit from SmallCapDigest 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 SmallCapDigest Email Newsletter on a regular basis. To ensure newsletter delivery, you can add any additional email addresses you may have to the SmallCapDigest Member List. Receiving the SmallCapDigest Newsletter in multiple locations is the best way of making sure you don't miss the next investing or trading opportunity! 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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 SCD. To the degrees enumerated herein, SCD 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://www.smallnetwork.net/profile_disclosure.html for our full profiles and http://access.smallcapnetwork.com/short_term_alerts.html for Trading Alerts.  TGR Group LLC has been paid a fee of $30,000 and pledged 150,000 warrants with an exercise price of $2, currently convertible into restricted shares of Clearly Canadian, by Level III Research, for its coverage of Clearly Canadian.  TGR Group LLC has been paid a fee of $25,000 and 100,000 shares of newly issued restricted stock by Novelos for coverage of the Company. The aforementioned shares have become free trading under Rule 144.  From time to time TGR sells shares received as compensation for coverage of client companies. 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