Dow Jones 13785.07 +68.12 3:12 pm PDT, July 25, 2007 NASDAQ 2648.17 +8.31 For info, visit access.smallcapnetwork.com S & P 500 1518.09 +7.05 Change your subscription status here Russell 2000 812.50 +0.64 VOLUME 07 : ISSUE 72 Smart Energy's Army Now Marching In Sweden I can't count the number of times in my early days as a trader I decided to wait to become a shareholder of good companies, only to end up chasing those stocks when they started to fly. I quickly learned the best time to jump in is when nobody else seemed interested. It's an important reminder today, since I have a feeling Smart Energy Solutions Inc. (OTCBB: SMGY) may soon end up being one of those companies investors regret not owning when it was undervalued. Anyway, score another one for Smart Energy Solutions. The company brought a new distributor into the fold - this one in Sweden. As always, I'll detail the news and add some opinion to boot. However, the news brings up yet another reason to own the stock now.....something I feel most investors may not have really taken hold of yet.  First things first though. The new distributor is CLP System, based in Stockholm, Sweden. An initial order has already been shipped, and if the device tests well, a lot more could be headed that way real soon.  The news-worthiness is rooted in the long-term potential this could have for Smart Energy. There are over 4 million cars and nearly half of a million commercial vehicles in Sweden alone. Just for perspective, last year, a total of less than 70,000 Battery Brains were sold worldwide. See the opportunity there? If a 'Brain' was installed on only 2% of Sweden's vehicles in 2008, that alone would exceed last year's total sales.  And if anybody can make an impact in the Swedish market, CLP looks like the go-to guy. They're a parts and equipment provider for the military, police, and industrial companies. I'd say it's safe to say they have a lot of 'ins' with the right people.  In a nutshell, we interpret this as another big step for Smart Energy's push into the mainstream market.    More Obscure, But More Important One of the things you've surely heard me say (or write) by now is that there are two messages in most news releases. There's the obvious one, where the words are just taken at face value (like 'there's a new Battery Brain distributor in Sweden). Then there's the 'bigger picture' one, which is not stated explicitly, but requires a little bit of mental dot-connecting. Do you know how many international distributors or vendors this makes for Smart Energy? Two? Three? I count six, with more on the way. Check out these recent headlines...      06/11/07 - Smart Energy Solutions completes shipment of Battery Brain to Royal Dutch Touring Company 05/30/07 - Smart Energy Solutions signs distributions agreement with leading U.K. distributor the Amethyst Group 12/04/06 - Smart Energy Solutions signs distributions agreement with Dextera U.K. 06/19/06 - Smart Energy Solutions signs distributions agreement with Chennan Enterprise Co. in China 04/18/06 - Polish Trading Company signs distributions agreement for Battery Brain(tm) in Poland 02/06/06 - Elcart Distributions S.p.A. signs distributions agreement for Battery Brain(tm) in Italy  So what? I gotta' respect an organization that makes a plan, and then actually executes it. It builds credibility in my book, which is why I think quite a bit of Smart Energy right now. But, it's not so much the splash they've made so far in Europe that has me curios - it's something the company said in a press release from September 25th of last year....  [Smart Energy Solutions] announced today that it is aggressively pursuing additional revenue growth outside of North America and is targeting Europe first. Asia, Central and South America, Australia and Africa will follow..."The rapid growth in sales and the additional quality customers of Seagull Corporation, our Benelux distributor, led us to make a strategic decision to try and penetrate the European markets immediately," said Pete Mateja, CEO of Smart Energy Solutions.  Did you catch that first part? Targeting Europe first? I'd say the mission has pretty well been accomplished, though I also know some more European outlets are still being worked on.  But, the part that really sticks with me - and the point I wanted to make today - is when they say Asia, Central/South America, Australia, and Africa will follow, I for one believe them. Why? Because they've already done it in Europe (plus one Chinese distributor)....just like they said they would.   Chart & Epilogue Since we've been watching, SMGY shares have been a little stagnant. However, I think that could be a good thing. I attribute a great deal of any sluggishness to the market environment rather than the company, but some if it may indeed be a lack of current interest. To all of those who haven't taken notice of Smart Energy's stock yet, we say thanks -we plan on letting you chase this one later rather than us.  And exactly what do we see here? Mostly a range-bound consolidation, and maybe the calm before the storm. The stock has eased off since hitting a peak of 65 cents in February, currently trading at 57 cents. A combination of the 50 day moving average line and a long-term resistance line (orange) has been the baseline for the move, which hasn't been really all that bad. On the other side of the chart, the 38.2% retracement level at 53 cents has (except for one intra-day blip to 46 cents, on June 25th) acted as a floor. But take a closer look. Since that wash-out day on the 25th, we've seen higher lows. Before that, we were seeing lower lows. In other words, that day may end up being the pointy end of a 'V' shaped reversal. We haven't broken past the upper edge of the range yet.....but you know what? As a buyer, I'd be ok with that - 'cause I don't want to have to chase it later. The likely downside to owning today may just be more sideways movement for a while. No harm, no foul. The upside, however, is being in front of any breakout move. The company certainly is putting together the fundamental foundation needed to drive those kinds of technicals. I also think this summer lull is a great opportunity to really go shopping.  As for the potential catalyst, I believe Smart Energy's introduction into the auto parts world has been well underestimated. It doesn't seem nearly enough people appreciate just how brilliant this little device is. They will though. Just reread today's news as proof. Nothing about the chart has stopped the company from rolling Battery Brains out to consumers at a pretty brisk pace. So.....  What I think could happen here is simple - SMGY shares may make up for lost time in a fairly short period of time later. Today or tomorrow? I don't know, but I think soon - the international accounts alone speak for themselves (not to mention the domestic outlets being added to the Smart Energy army). I believe the issue may be sex appeal, metaphorically speaking. A simple car gizmo isn't cancer-beating biotechnology or an iPhone, and therefore, doesn't create the media buzz too many of us are used to.  You know what I fiend sexier than anything though? Numbers. Results. Sales, Profits. Call it whatever you want - more and more Battery Brains are getting through to consumers. I feel Smart Energy is going to surprise the market with their next couple of quarterly updates. I think 2008 could be even bigger. Are you ready?  Here are the details...    SMART ENERGY SIGNS DISTRIBUTION AGREEMENT WITH CLP SYSTEM AB, SWEDEN - TO EXPAND INTERNATIONAL PRESENCE  POMPTON PLAINS, N.J., July 25, 2007- Smart Energy Solutions, inventor and manufacturer of the innovative Battery BrainTM vehicle aftermarket device, today announced that the Company has signed a product distribution agreement with CLP System AB.  CLP System, headquartered in Stockholm, Sweden, is a leading producer and marketer of machines, spare parts, equipments and services within the branches of safety, security and maintenance. An initial order of the Battery Brain device has been shipped to provide CLP System an opportunity to supply their sales force and test the markets with Battery Brain. CLP Group's dominant position in the market helps them maintain a national and international distribution network.  "We have searched for a high quality product like Battery Brain for some time in order to complete our assortment of Battery and Battery maintenance with a much needed security device like Battery Brain. We are sure that our customers will appreciate the product and its services since it will not only protect them from being stranded without battery power, it will also prevent theft of their vehicles and boats! The cooperation with Smart Energy Solutions will be interesting and of benefit for us!" stated Tomas Jagerman, Managing Director, CLP.  "CLP System will proactively position Battery Brain to key markets and businesses providing solutions to dead battery issues. We look forward to increasing our market penetration rate in the Scandinavian marketplace for Battery Brain through this relationship. In Sweden alone, there are more than 4.2 million passenger cars and over 475,000 commercial vehicles on the road. It's a tremendous opportunity for Battery Brain," said Andy Knowles, Vice President of Sales and Marketing. "We are excited to be forging this relationship with CLP System. They are a well-respected market leader in parts and equipment distribution, with a focus on products and services that are beneficial and unique in their fields, and Battery Brain is a perfect fit,"  Battery BrainTM is Smart Energy's flagship device that constantly monitors electrical discharge of the battery for nearly all kinds of vehicles including autos, SUVs/trucks, medium and heavy duty trucks, military, buses, RV's, boats, commercial vehicles and personal watercraft. Should Battery Brain detect that the battery is losing sufficient charge to start the vehicle's engine; the device automatically disconnects the battery to preserve its starting power. In addition, Battery Brain offers a built in anti-theft feature.  About Smart Energy Solutions  Smart Energy Solutions, Inc. (OTC Bulletin Board; SMGY; Berlin: UBM.BE; Frankfurt: UBM.F) is the sole owner of the Battery Brain line of vehicle accessory products. The company is headquartered in Pompton Plains, N.J., with operations in Zhuhai, China, Milan, Italy, Petach Tikva, Israel, and Clifton, NJ. Visit www.smgy.net.  About CLP System AB  CLP System AB is the mother company consisting of several subsidiary companies that produce and sell machines, spare parts, equipment and services within the branches Safety, Security, and Maintenance. Their main customers are military forces, police authorities, security services and industrial firms. Their product assortment includes everything from weapon maintenance, batteries, and electronic technology to anti-mine protection of vehicles as well as explosion and fire protection, metal detectors and much more. Visit www.clp.se  Press Contact:  Bruce G. MacDonald, Liebler!MacDonald-248-233-8062, bmacd@liemac.com  Investor Concact:  Ed Braniff, CFO, Smart Energy Solutions, Inc.-973-340-6000, ebraniff@optonline.net    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 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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