Dow Jones 10190.82 +14.74  4:18 am EST, Sat., April 13, 2002  NASDAQ  1756.19  +30.95  For info, visit access.smallcapnetwork.com .  S & P 500  1110.83  +7.14  To be removed, please click here .  Russell 2000    515.46  +11.73  VOLUME 02: ISSUE 28 SmallCap Digest Weekend Edition: Investing Patiently Yesterday, a significant milestone was achieved by Axcan Pharmaceuticals (AXCA). The company has filed Photofrin in the European Union for an expanded indication in Barrett's esophagus. For this indication, Photofrin already approved in the US and EU for lung and esophageal cancer, will be known as Photobarr.  Photobarr also received EU orphan medicinal status, which grants the company 10 years of marketing exclusivity. The European filing is a good indicator that the U.S. sNDA filing for Barrett's is on track in the second quarter of this year.  FDA approval is expected in the second half of 2002. Photobarr is going to be a key growth driver in Axcan's pipeline. It is estimated that US and European approvals for Barrett's will translate into peak sales of $75 million dollars.  Considering that sales of the drug in 2001 were approximately $10 million dollars the best for Axcan is yet to come.  Our short term trading alert was issued March 25 when the company was trading at $12.15 per share.  In only fourteen trading the days Axcan has gained 23.8% to close at its 52 week high of $15.05 Friday.  If you owned Axcan after the initial trading alert the immediate results were less than exciting.  However, those who were patient were able to realize some fantastic gains. As much as we all wish the equities we owned would skyrocket and create parabolic charts, it is rarely the case.  For SmallCap Digest subscribers this most recent development has a hidden bonus.  Diomed (DIO), a company we profiled in February supplies Axcan with lasers and fibers for use with Photofrin.  We are in the process of confirming that Photobarr will indeed use Diomed's lasers and fibers for the treatment of Barrett's esophagus.  If this proves to be the case then Diomed could experience positive upside in revenues and even an accelerated path to profitability. Diomed's performance has been very disappointing currently down over 40% from the time the company was profiled at $6.95 per share.  The fundamentals have so far remained intact.  Factors are integral for the success of Diomed is the roll out of EVLT and additional drug approvals in the PDT industry that would require the company's lasers and fibers.  Both of these events have come into fruition so the final step is corporate performance.  Investors that purchase the stock at the current price of $4.04 per share have an incredible opportunity to reap some above average gains.    Cross Media (XMM) had an eventful week. A civil action filed by the Federal Trade Commission alleges magazine telephone sales operations violated legal requirements.  The company's stock moved down opened on Wednesday at $10.50 per share but promptly closed the days at its high.  The action in the stock suggests that the complaint filed by the FTC may not that big of a deal relative to Cross Media decline. Investors that purchased shares of Cross Media this week really found themselves with a "blue light special".  Our most recent short term trading alert was issued on Pharmacyclics (PCYC) April 7 at a price of $7.12 per share.  The company makes for an attractive short term trading alert because it has $120 million in cash and a market cap under this number.  Short term catalysts include an FDA filing and a potential buyout of the company.  The timing on these catalysts is unknown but the overall consensus is that Pharmacyclics needs to improve shareholder value and they need to do it now. $120 million affords the company close to three years of capital.  With four drugs in the FDA process focusing on over 15 treatments the chances of an FDA approval in the future seems very bright. We are a bit surprised the company did not make an announcement that it was presenting at the 93rd Annual Meeting of the American Association for Cancer Research April 6-10 in San Francisco.  Any news of positive testing results would have moved the stock up nicely.  Since this scenario did not play out according to plan the next focus is some news from the FDA.  In the event that the news is the negative the stock could drop to the $6.00 level.  On the other hand positive news can send the stock to the double digit levels. Risk and reward are the factors that investors must weigh before making any stock purchase.  In a perfect world everything we buy appreciates in value. During the nineties this actually happened for a few years. Subsequently the world was anointed with thousands of people who had the Midas touch.  This Midas touch is now a form of portfolio leprosy. The bottom line is that investors need to put investment ideas on the risk/reward scale and decide for themselves if the investment makes sense.    7 D I S C L A I M E R : The SmallCap Digest is an independent electronic publication committed to providing our readers with factual information on selected  publicly traded companies. SmallCap Digest is not a registered investment advisor or broker-dealer. 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, this publication accepts compensation from third party consultants and/or companies which it features for the publication and circulation of the SmallCap Digest or representation on SmallCapNetwork.net.  Likewise, this newsletter is owned by TGR, LLC.  To the degrees enumerated herein,  this newsletter should not be regarded as an independent publication. Click Here to view our compensation on every company we have ever covered, or visit the following web address:  http://access.smallcapnetwork.com/compensation_disclosure.html for our full compensation disclosure and http://access.smallcapnetwork.com/short_term_alerts.html for Trading Alerts compensation and disclosure.  In the interest of full disclosure, we inform you that one of our editors owns shares of PCYC in his own personal account, purchased in the open market. Our editor is free to buy and sell the stock any time at his own discretion. This should be viewed as a potential conflict of interest.  TGR Group LLC has been paid a fee of $50,000 in cash a by Mohammed Patel, an individual, for publishing information on Diomed Corp for a period of one year.  All statements and expressions are the sole  opinions of the editors and are subject to change without notice. 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We encourage our readers to invest carefully and read the investor information available at the web sites of  the Securities and Exchange Commission ("SEC") at http://www.sec.gov and/or the National Association of Securities Dealers ("NASD") at http://www.nasd.com . We also strongly recommend that you read the SEC advisory to investors concerning Internet Stock Fraud, which can be found at  http://www.sec.gov/consumer/cyberfr.htm . Readers can review all public filings by companies at the SEC's EDGAR page. The NASD has published information on how to invest carefully at its web site.