Dow Jones 11144.75 -43.48 9:10 am PDT, September 5, 2008 NASDAQ 2240.87 -18.17 For info, visit access.smallcapnetwork.com S & P 500 1229.54 -7.29 Change your subscription status here Russell 2000 708.66 -9.96 VOLUME 08 : ISSUE 78 In This Edition... Something's Coming  Red Sox Fans Can Catch SpongeTech's Latest TV Ad  The Technical Side of Grape DNA (Seriously)  What's Up With The Market? Something's Coming I've never been one for subtle hints, so I'll go ahead and open the bag to let the cat out - you're going to want to be near your computer next Friday (the 12th) after the market closes. Unless something unexpected happens and we decide to reschedule, we'll have a new small cap trading idea for you ...a really cool one. It's been a while since we've actually looked at a new small cap company. Part of the reason has been the tepid market environment, but part of it has also just been that we haven't seen a ton of quality ideas coming down the pike. (For us, quality is better than quantity.) So, having a new one at all speaks highly of this stock. I don't want to say too much too soon. On the other hand, I'm sure you're at least a tad curious. Here are a few brief tidbits to get your juices flowing... Their 2008 Q2 revenue was more than three times that of 2007's Q2 revenue.  In the last couple of months, the company has signed contracts worth more than Q2's (2008) total revenue.  Those recent contracts are only about 5% of the orders they already have, and are waiting to fill.  The kind of business they're in is close to being mandated by the government.  Their product saves companies money, and helps save the environment too.  This is going to be an exciting company - one I think could lead the revival of small cap stocks in the latter part of this year. I'll drop a few more hints in the meantime, but like I said, I think Friday after the close is going to be the actual unveiling.   Red Sox Fans Can Catch SpongeTech's Latest TV Ad For those of you who are Red Sox fans - or just in the New England area - if you're watching tonight's pre-game against the Texas Rangers you're probably going to see SpongeTech Delivery Systems' (OTCBB: SPNG) latest television commercial. It'll be airing on NESN TV (New England Sports Network). If you miss that airing, check back Monday night when they play the Tampa Bay Devil Rays.  SpongeTech got quite a bit of sales traction when they did some comparable stuff in New York, so hitting another big market like this one should bear some fruit again.    The Technical Side of Grape DNA (Seriously) A couple of weeks ago we were touting Applied DNA's (OTCBB: APDN) entry into the fast-growing wine industry. Their role isn't that of a vintner, of course. Rather, they've devised a marketable way to spot counterfeit wine by testing the DNA of the grapes used to make the wine. The article prompted several good questions from you guys. In fact, two of them were important enough to discuss in follow-up newsletters. The first question was whether or not this wine-identification test would be a forensic test that would be admissible in a court case. The answer was, yes, it will be. The other question has taken a little more time, since it's more of a science question than a financial or marketability question. Some of you wanted to know how they could distinguish where a grape was grown if it was the same variety of grape (and therefore should have the same DNA). I didn't have an answer, so I forwarded it on to the company. Today I have a response. This is largely paraphrased, but basically - with a little time - measurable variations in the DNA of a plant species will develop. Some of the mutations are spontaneous, while others may be stimulated. The difference may only be a Single Nucleotide Polymorphism, or SNP (a minute genetic change that can occur within a DNA sequence, where one of four possible nucleotides in a sequence is replaced by one of the other nucleotides). However, the technology to spot even a SNP now exists. Once a base or comparison SNP is collected, haplotyping can identify a specific plant and associate it with its geological origin. Now, I'd like be able to say that was my answer. It wasn't though. That's the diet version of what the company responded with. I'd also like to say I understood it the first time I read it. I didn't though. I had to suffer a couple of flashbacks from high school biology before it made sense. Good thing I'm a numbers guy. Anyway, the short answer is, yes, the wine authentication test is indeed sensitive enough to determine the geographic origin of the grapes used to make the wine.   What's Up With The Market? I was fully prepared today to make some meaningful comments following yesterday's precipitous selloff. Then, today brought the 2nd round of bad news. What do you expect to happen when unemployment moves to multi-year highs? Stocks are selling off again. As it stands right now we're down about 6% for the week. That's harsh, but the truth is we rarely see the market make back-to-back weekly losses following a complete, week-long drubbing like this one. In other words, next week the odds say we'll see a dead-cat bounce. After that, it's anybody's guess again. One thing I do know for sure is this - the current environment requires constant monitoring. Stocks have stopped and turned on a dime several times in the last few weeks, so you have to be pretty nimble to turn a profit if you're a trader.  That's only one reason for my hesitation to dig in though. I'm also cognizant of the flightiness of the average investor, particularly right now. Don't forget the bulls went nuts last week when Q2's GDP was revised considerably higher. Point being, we're just one good news event from starting an equally powerful recovery. I'd really like to see how this day ends before making a stand. The end-of-day price is the one that really matters. And, the end-of-week price is an even stronger indication of how investors really feel. Check the blog after the close or this weekend, as I'll have my updated outlook for you then.      We Value Your Feedback   Got comments, questions or suggestions? 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For web based email addresses, the Small Cap Network recommends @yahoo.com or @aol.com for timely and reliable email newsletter delivery. D I S C L A I M E R: The Small Cap Network is an independent electronic publication committed to providing our readers with factual information on selected publicly traded companies. 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 described below, this publication accepts compensation from certain of the companies which it features. TGR Group, LLC which owns this electronic publication, also accepts compensation in connection with the dissemination of information regarding the companies featured. This publication should not, therefore, be regarded as an independent publication.  To view our compensation on every company we have ever covered, 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. Additionally, one of the managing Members of TGR Group, LLC has purchased 150,000 shares of Spongetech Delivery Systems, Inc. in the open market with an average cost basis of $.035 cents per share. TGR Group, LLC has been paid a fee of $30,000 cash and 1,000,000 shares of newly issued restricted stock by Applied DNA Sciences Inc. for coverage of the Company.  All statements and opinions expressed herein are those of the editors and are subject to change without notice. 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