Dow Jones 10059.63 +113.41  6:50 am EST, Wed., May 1, 2002  NASDAQ  1677.53 -10.70  For info, visit access.smallcapnetwork.com .  S & P 500  1086.17 +9.53  To be removed, please click here .  Russell 2000    510.83 +0.16  VOLUME 02: ISSUE 32 Finding The Needle In The Stockstack The SmallCap Digest is pleased to announce that our May profile will be released in less than two weeks.  In honor of this occasion, we will be running a contest in this weekend's edition.  Five Compaq Pocket PCs will be awarded to the winners.  These PDAs are the top of the line models.  We will have all the details for you in this weekend's edition. This is not some dopey drawing.  Instead we will post a chart and the contest is to guess what company the chart corresponds to.  Yes, this means there is a bit of work involved and that is why we are giving out the high end Compaq Pockets PCs instead of the cheaper Palms of Handsprings. Last week in our Monday edition What A Wireless World We Weave, we told you that investing in the wireless sector may be bad for your heath.  Specifically, investing in carriers and tower companies.  On paper these entities have been able to achieve substantial revenue and subscriber growth.  However, the debt loads of the companies have grown equally fast.  To add insult to injury, there are no signs of profitability in the foreseeable future.  Take a look at charts of the companies mentioned in last week's edition. Readers will find that although they may cherish their cell phones, owning stocks in the industry has been a very unprofitable endeavor. Not all was gloom and doom because we promised to bring you wireless related companies that are doing well.  Without further adieu, we have found three companies that have leveraged wireless capabilities to develop a niche market.  They are all profitable, have relatively low debt and most importantly have given their investors returns that we all dream of. Numerex Corp. (NMRX) is a wireless data communications company that utilizes proprietary network technologies. The Company offers products and services in wireless data communications through their subsidiaries Cellemetry and Data1Source, and digital multimedia through PowerPlay and IP Contact. These services enable customers around the globe to monitor and move information for a variety of applications, from home and business security to distance learning. In addition, the Company offers wireline alarm security products and services, as well as telecommunications network operational support systems. Numerex is up over 40% in the past 12 months.  The company has zero coverage on Wall Street and only twenty one institutions that own shares.  Like other companies in the wireless space profitability has not been something familiar to Numerex.  However, losses have been substantially cut and this quarter or next the company should be able to achieve a profitable quarter.  With a market capitalization a tad north of $100 million, the company is a bit small for most funds but if they continue to execute shareholders will be rewarded handsomely.     Lifeline Systems, Inc. (LIFE) provides 24-hour personal response monitoring services to its subscribers, primarily elderly individuals with medical or age-related conditions as well as physically challenged individuals. These subscribers communicate with the Company through products it designs and markets, consisting principally of a communicator that connects to the telephone line in the subscriber's home and a personal help button, which is worn or carried by the individual subscriber and which, when activated, initiates a telephone call from the subscriber's communicator to the Company's central monitoring facilities. As of December 31, 2000, Lifeline was monitoring approximately 313,000 subscribers and estimates it serves, along with its customers, more than 400,000 subscribers in a North American personal emergency response services market estimated by the Company to serve between 550,000 and 600,000 subscribers as of December 31, 2000. Lifeline is up over 43% this past year but even more impressive is the two year gain of over 100%.  The company may remind people of those late night infomercials decrying "I've fallen and I can't get up" but Lifeline has proven to stand tall as an investment.  As the number of elderly Americans increase each year, Lifeline will see its business continue to flourish.  Lifeline is still relatively small with a $173 million dollar market cap.  The company has one firm covering it and approximately forty five institutional shareholders.  This year the company is expected to earn $1.18 per share on revenues of $100 million dollars.      EMS Technologies, Inc (ELMG) designs, manufactures, and markets products that are important in many kinds of wireless communications. The Company focuses on the needs of the mobile information user, with an increasing emphasis on broadband applications for high-data-rate, high-capacity wireless communications. The Company is organized around two business segments: Space and Technology, and Wireless Products. The Space and Technology manufactures custom-designed, highly engineered hardware for use in space and satellite communications, radar, surveillance and military counter-measures. The Wireless Products segment manufactures standardized antennas, terminals, and other wireless network products for use in logistics, healthcare information management, transportation, PCS/cellular communications, and satellite communications. EMS is more of a mainstream stock compared to Numerex and Lifeline.  Four brokerage firms have coverage on the company and over eighty institutions own a stake.  In the past twelve months the company is up over 55%.  Revenues in 2002 should be $327 million dollars and earnings should be $1.00 per share. Successful investments like the three companies mentioned in this edition are what investors dream about.  Finding these hidden gems are certainly not easy. Despite the profits that these companies have reaped for shareholders they are all relatively unknown.  By the time Main Street and Wall Street jump on the bandwagon the gains are all but gone.  Numerex, Lifeline, and EMS have done something incredible and that is flourishing in the wireless space despite the carnage that has sacked the industry.  Our readers now know about these three companies but we would've liked to have written about them a year ago. You probably do too. Fortunately our May profile is an undiscovered wireless company that shares many of the same characteristics as the three companies mentioned.  The key is to keep debt low, increase revenue, and find a niche. We believe our May profile has the potential to surpass the impressive gains achieved by all three companies.  In less than two weeks we will profile this company to our readers.  Unlike the companies mentioned in our edition today, the May profile is completely unknown and in a year will join the ranks of the outstanding performers in the wireless sector. In our next edition we will have the details to the contest we will be running in honor of the May profile.  Five top of the line Compaq Pocket PCs will be awarded to the winners.  Look for all the details in this weekend's edition. 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. All statements and expressions are the sole  opinions of the editors and are subject to change without notice. A profile, description, or other mention of a company in the newsletter is neither an offer nor solicitation to buy or sell any securities  mentioned. While we believe all sources of information to be factual and reliable, in no way do we represent or guarantee the accuracy thereof, nor the statements made herein. The editor, members of the editor's family, and/or entities with  which the editor is affiliated, are forbidden by company policy to own, buy, sell or otherwise trade stock for their own benefit in the companies who appear in the publication. The profiles, critiques, and other editorial content of the SmallCap Digest and SmallCapNetwork.net may contain forward-looking statements relating to the expected capabilities of the companies mentioned herein. THE READER SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. INVESTING IN  SECURITIES IS SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK. THE INFORMATION FOUND IN THIS PROFILE IS PROTECTED BY THE COPYRIGHT LAWS OF THE UNITED STATES AND MAY NOT BE COPIED, OR REPRODUCED IN ANY WAY WITHOUT THE EXPRESSED, WRITTEN  CONSENT OF THE EDITORS OF SMALLCAPNETWORK.NET. 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.