Dow Jones 11850.21 -16.48 5:57 am PDT, October 7, 2006 NASDAQ 2299.99 -6.35 For info, visit access.smallcapnetwork.com S & P 500 1349.58 -3.64 Change your subscription status here Russell 2000 739.81 -3.27 VOLUME 06: ISSUE 79 I'm Changing My Tune...Or At Least My Lyrics  Although I specifically try to avoid writing in a casual 'first person' for the SmallCap Digest, I'm willing to make an exception this time. After all, it is a weekend edition, and time to relax, right? Besides, it's much easier to make point when the barriers of journalistic stiffness are broken down. With that in mind, I'm pretty excited to be chatting with you about a company we already dissected a few days ago...it's just that something was brought to light yesterday that may merit an even closer look at the company's big upside potential. Multicell Technologies (OTCBB: MCET) - the biopharmaceutical company we first studied in our September 28th edition - may have more revenue firepower than any of us initially realized. Of course, this could really 'up the stakes' for shareholders.  You remember the Paul Simon song '50 Ways to Leave Your Lover'? After I read yesterday's press release (which is below, as always), I couldn't help but rewrite the lyrics in my head, this time with a Multicell slant....'50 Ways to Make Some Money'. Well, actually it's fifty-four ways to potentially make some money, in Multicell's case. And out of respect for Paul Simon - and all of you - I won't be uploading an audio recording of my version of the song. You'll just have to read my rant instead...    One Way, Or Another  In the biotech world, there are really only two revenue models. One of them is the production and sale of pharmaceuticals. The other is the development and licensing of patented drugs or treatments. For the most part, 'big pharma' companies are on the production side of the business. They are licensed to mass-produce the drugs previously developed and brought to market by other biotech outfits. The smaller outfits - like the micro-cap biopharmaceutical companies we might highlight here at the SmallCap Digest - tend to focus on the creation of new medicines and therapies...the kind of thing most pharmaceutical giants aren't willing to risk doing. (By the way, we'll be looking at the big pharma/small pharma dynamic in an upcoming edition).  Anybody care to guess which side of the business offers the most potential to investors? On the flip side, anybody care to guess which side of the business offers the lesser degree of risk? If you answered 'development' to the first question, and 'production' to the second question, then give yourself a gold star. It's just like trading or investing...the more risk you're willing to take, the higher your potential return is.  So what are the 'risks' in biopharmaceutical research and development? Well, it all centers around one single risk when you really think about it. The risk is simply devoting time, money, and resources to a particular drug or treatment that ultimately never gets to the market...and therefore never drives revenue. For some companies who were relying on FDA approval of the only drug they had in the works, that kind of risk has meant catastrophe. Conversely, a company that only devoted resources to one drug that did indeed end up getting a much-needed FDA approval, it may have meant a windfall.  But what if a biotech company didn't have to take an 'all or nothing' approach? What if a biotech company could do the same thing investors should be doing too...which is diversifying? Well, Multicell has, which is yet another reason why the stock deserves a close look.    A Whole Library of New Biopharma  When I first started doing some due-diligence-type of research on Multicell (and keep in mind I'm not a scientist or doctor...I'm an investor), I saw they had three basic treatment 'platforms'. They were also targeting three specific diseases at the time, and had just added a fourth disease - cancer - to their hit list. I figured it meant a handful of patents....maybe one for each platform, and one for each specific disease. That could mean a total of anywhere from five to ten patents, pending or approved. After I read through yesterday's press release though, I was pleasantly stunned at how much intellectual property Multicell owned...they have 54 issued or pending patents! No, that wasn't a misprint - Multicell has a total of 54 approved or pending patents. It makes me think back to something Multicell's CEO Stephen Chang said to me before we published our initial profile. In his own words, he described his company's competitive edge as 'multiple opportunities to hit home-runs'. With 54 patents on the table or in the works, he wasn't kidding around.  For shareholders, now or later, the news may be just as compelling. The licensing of patented drugs is very lucrative, or if Multicell wanted to get into the production business, they have that option too. Even if just a handful of those patents leads to a fully-approved drug or therapy, it could still potentially mean enormous revenue. So, like we said last week about MCET shares...  Based on the kind of potential rebound MCET shares could make, paired with the early steps towards significant revenues, we think this company's stock is worth putting on your radar...at least from a long-term view, and possibly a short-term view as well.  Read the press release for yourself...    MultiCell Announces Intellectual Property Portfolio of First-in-Class Technologies Crosses Threshold of 50 Issued or Pending Patents Company Extends Scientific Leadership in Development of Next-Generation Immune Modulation Drugs  Friday October 6, SAN DIEGO -- MultiCell Technologies, Inc. (OTCBB: MCET), a biopharmaceutical company developing first-in-class drugs based on advanced immune system modulation and other proprietary technologies, today announced that its intellectual property portfolio now totals 54 issued or pending patents that cover its novel drug development platform technologies and new drug candidates.  The Company is leveraging its breakthrough technology platforms to develop a new generation of therapeutic candidates which stimulate or suppress the immune system to treat such conditions as multiple sclerosis, diabetes and infectious and viral diseases such as HIV.  "The aggressive expansion of our patent portfolio is central to both our scientific as well as our growth strategies. Achievement of this latest threshold of 54 issued or pending patents is an indication of our commitment to extend MultiCell's leadership as a developer of the next generation of immune-modulating drug therapies," said Dr. Stephen Chang, President and Chief Executive Officer of MultiCell. "Through our key drug development platforms, MultiCell is taking a leadership role in creating first-in-class immune-modulation drugs to target extensive unmet medical needs."  The US Patent and Trademark Office recently published MultiCell's US patent application (US Patent Application 20060193855) for its novel therapeutic immunoglobulin-peptide molecules which target disease-specific T-cells.  MultiCell also recently announced it has filed a patent that provides a potential new cancer therapy via a method for treating a range of malignant tumors using the Company's unique technologies to manipulate the immune system.  Modulation of the immune system is central to humans' ability to combat disease. MultiCell's therapeutic development strategy targets both the innate and adaptive immune systems via platform technologies known as Toll-like receptors and disease-specific T-cell targeting.  MultiCell is leveraging its platform technologies to develop new drug candidates that effectively ward of disease; some by boosting the immune response, such as would be needed in the case of virus infection. Other MultiCell drug candidates are designed to selectively suppress only those immune cells which are the underlying cause of such serious and difficult-to-treat diseases such as multiple sclerosis or type-1 diabetes.  "MultiCell is developing technologies and drug candidates that can be described as the fourth generation of immune system therapeutics," Dr. Chang added. "They are continuing in the tradition of the immunological research that saved lives with the first vaccines, then progressed to immune suppression therapy, and more recently to multibillion-dollar markets for targeted immune system-based therapies."  MultiCell is currently focused on three disease targets with products already in the clinic: multiple sclerosis (MS), type-1 diabetes, and influenza.  The Company's first-in-class therapeutic pipeline includes:  MCT-125 for the treatment of chronic fatigue in MS patients. MCT-125 completed a 138 patient Phase II clinical trial and demonstrated strong efficacy in reducing fatigue in MS patients. There is no drug specifically approved for the treatment of chronic fatigue in MS patients anywhere in the world.  MCT-175 for the treatment of relapsing-remitting MS. MCT-175, in preclinical development for the treatment of relapsing-remitting MS, targets disease specific autoaggressive T-cells that destroy the myelin sheath of nerve cells. MCT-175 successfully ameliorated the disease in animal models.  MCT-275 for the treatment of type-1 diabetes. MCT-275, in preclinical development, targets disease-specific autoaggressive T-cells that destroy insulin producing cells in the pancreas. MCT-275 completely reversed the type-1 diabetic phenotype and prolonged life in animal models.  MCT-465 for the treatment of virus infection. MCT-465 in preclinical studies successfully reduced pulmonary influenza virus levels 1,000-fold in animal models, and has demonstrated effectiveness in reducing virus levels of HIV and HCV in animal models.  About MultiCell Technologies  MultiCell Technologies, Inc. is an integrated biopharmaceutical company committed to the development of breakthrough therapeutics based on a portfolio of therapeutic candidates and patented drug development technology. MultiCell's drug development program is focused on modulation of the immune system. The Company's lead drug candidates include drugs to treat MS-related chronic fatigue, relapsing-remitting multiple sclerosis, type-1 diabetes and infectious disease. The Company also holds unique cell-based technology for use in drug discovery screening applications and the production of therapeutic proteins, and is the leading producer of immortalized human hepatocyte cell lines needed by the biotechnology and pharmaceutical industries to develop new drugs and therapeutics. For more information about MultiCell Technologies, please visit http://www.MultiCelltech.com. For investor information about MultiCell, please visit http://www.trilogy-capital.com/tcp/multicell. For current stock price quotes and news, visit http://www.trilogy-capital.com/tcp/multicell/quote.html. To view the Company's Investor Fact Sheet, visit http://www.trilogy-capital.com/tcp/multicell/factsheet.html. To listen to an archived investor conference call, visit http://www.trilogy-capital.com/tcp/multicell/conference/html.  Forward-Looking Statements  Any statements in this press release about MultiCell's expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and are forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995 (the "Act"). These statements are often, but not always, made through the use of words or phrases such as "believe," "will," "expect," "anticipate," "estimate," "intend," "plan," "forecast," "could," and "would." Examples of such forward-looking statements include statements regarding plans to develop new drug candidates, plans to expand intellectual property holdings, the ability of MultiCell to accelerate any of its therapeutic programs, or the ability of MultiCell to commercialize any drug candidates. MultiCell bases these forward-looking statements on current expectations about future events. They involve known and unknown risks, uncertainties and assumptions that may cause actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by any forward-looking statement. Some of the risks, uncertainties and assumptions that could cause actual results to differ materially from estimates or projections in the forward-looking statements include, but are not limited to, the risk that we might not achieve our anticipated clinical development milestones, receive regulatory approval, or successfully commercialize our lead drug candidates as expected, the market for our products will not grow as expected, and the risk that our products will not achieve expectations. For additional information about risks and uncertainties MultiCell faces, see documents MultiCell files with the SEC, including MultiCell's report on Form 10-KSB for the fiscal year ended November 30, 2005, and all our quarterly and other periodic SEC filings. MultiCell claims the protection of the safe harbor for forward-looking statements under the Act and assumes no obligation and expressly disclaims any duty to update any forward-looking statement to reflect events or circumstances after the date of this news release or to reflect the occurrence of subsequent events.  Contact:  MultiCell Technologies, Inc.  Dr. Stephen Chang, CEO  MCETInvestor@MultiCelltech.com or  Trilogy Capital Partners (Financial Communications)  Paul Karon, 800-592-6067  paul@trilogy-capital.com   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 Commerce Planet Buys Another Company Commerce Planet (OTCBB: CPNE), now with a long list of recently acquired enterprises, announced yet another one today. Formerly paying Interaccurate Inc. to serve as the Planet's primary software developer, President Charlie Guggliuzza announced today his company would be buying its former vendor. Now Commerce Planet has yet another cost savings, in that the software development effort is now in-house. Why? No more hosting or licensing fees. However, we suspect that the real bottom-line benefit will be the additional revenue generated by Interaccurate once the Planet starts to promote the service. After all, they certainly already have the right customer base.  And just for the record, it didn't take long for Commerce Planet's last outright purchase of OS Imaging to become a new profit center. We blogged the acquisition announcement on June 6th. By July 26th, it had already become a proven venture. So, given Commerce Planet's magic touch, we're looking for this to be a real win-win scenario.  Click here to see the full press release.   From a Purely Technical Perspective...a Look at CEL-SCI, Novelos Charts Although news can always drive charts in the short run, truthfully, we'd rather see a stock make moves without needing news - good or bad - to get going. Why does it matter? The news-based volatility is short-lived, only lasting as long as the news echoes (which isn't very long). Stock trends set in motion relatively slowly, by the market's natural and nominal pressure, tend to have some longevity.  With that in mind, and in the absence of any news behind the movement, we think shares of CEL-SCI Corp. (AMEX: CVM) and Novelos Therapeutics (OTCBB: NVLT) may be worth a closer look. Both may have the appearance of the early stages of a rally.  CEL-SCI has been tough to own since April. After hitting a high of $1.78 on April 4th, it's been nothing but downhill since. But, just over the last four days (through October 6th), we're seeing a slightly different complexion. For the first time in months, CEL-SCI shares are above the 50 day line for a reason other than some explosive, border-line psychotic, move. Being undervalued, and seeing them just quietly work their way back above the 50 day line, has the qualities of the early stages of a nice upward move. >From here, resistance at 68 cents is kicking in. If CVM can break that barrier, the upside path will be much easier to follow.  Novelos shares pretty much look the same, at least in terms of what's different now. The 50 day moving average for NVLT had actually been a resistance line until September 25th, when a big rally pushed shares well past the intermediate-term moving average. The next day, buyers were deservedly tentative, as the stock opened even higher, then sank a little throughout the day. There has been no comfort since then, as shares have been unable to get past the high of 96 cents reached on September 26th. If anything, it looked like NVLT was going to roll over and sink under the 50 day line again. That is, until Thursday. Shares were up then, and hit an even higher high on Friday...with outstanding volume behind the buying effort. So for the time being, it seems like the bulls are going to hold their ground. A strong break past resistance at 96 cents, though, would make it much easier for NVLT to break loose to the upside.  Click here to see both charts.  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! For web based email addresses, the SmallCapDigest recommends @yahoo.com or @aol.com for timely and reliable email newsletter delivery. Subscribe Here Note: Your email address will be kept strictly confidential, and will not be shared with any other entity for any purpose at any time. If you no longer wish to receive the SmallCapDigest, simply follow the instructions located at the bottom of every SmallCapDigest Newsletter Edition. Unsubscribe Here D I S C L A I M E R: The Small Cap Digest, the Small Cap Network, its website and email newsletter (hereafter, cumulatively referred to as "SCD") , is an independent electronic publication committed to providing its readers with factual information on select publicly traded companies. SCD is owned and operated by TGR Group, LLC ("TGR"). TGR 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, 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 $15,000 by MultiCell Technologies for coverage of the company. In addition, TGR Group LLC has been pledged 100,000 warrants with an exercise price of $.60, convertible into restricted shares of Multicell, and 100,000 warrants with an exercise price of $.40, convertible into free trading shares of Multicell by Trilogy Capital Partners for coverage of the company. TGR Group LLC has been paid a fee of $60,000 by Commerce Planet for coverage of the company. In addition, one of the principles of TGR Group LLC is also a principle of MarketByte LLC. In a separate contractual relationship in 2004, MarketByte LLC was paid a fee of $25,000 in cash and 750,000 newly issued, restricted shares by Commerce Planet for coverage of the company. The aforementioned shares are all currently eligible to be free trading. The term of MarketByte's obligation to Commerce Planet has expired. TGR Group LLC has been paid a fee of $25,000 and 150,000 shares of newly issued restricted stock by Cel-Sci for coverage of the Company. Additionally, back in November of 2002, TGR Group LLC was paid a fee of $25,000 and 250,000 shares of newly issued restricted stock of Cel-Sci for coverage of the company until November of 2003. The aforementioned 250,000 restricted shares became free trading under SEC rule 144 and were sold in the open market prior to the company entering into a new contract agreement with TGR Group in February of 2006. 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. Shares received are sold in the open market. Since the shares are received as compensation for services as previously disclosed, and not for investment purposes, TGR does not view the sale of the shares as contradictory to any opinions delivered in the content. 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