Dow Jones 12778.15 +171.85 2:49 pm PST, January 14, 2008 NASDAQ 2478.30 +38.36 For info, visit access.smallcapnetwork.com S & P 500 1416.25 +15.23 Change your subscription status here Russell 2000 712.48 +7.83 VOLUME 08 : ISSUE 5 Applied DNA Keeps Good Company  They say you're judged by the company you keep. If that's the case, then I think Applied DNA (OTCBB: APDN) should move up a couple of notches in everyone's book. The company just announced they've been unanimously accepted into the Brand Protection Alliance, or BPA for short. The BPA is a collection of organizations that, together, offer a pretty thorough menu of anti-counterfeit and piracy protection choices.  What - you've never heard of the BPA? OK, confession time...I hadn't either. I knew what it was from the company's press release and my own subsequent digging, but I'm not on their mailing list. Nonetheless, this is actually a big deal within the brand protection world.  To put it in terms I think most of us would understand, these are the elite industry activists, and they don't just let anybody join. You have to bring something unique and worthy to the table. The fact that Applied DNA got in without a 'nay' vote speaks well for the company.  The long-term benefit of such an honor is pretty simple to figure out - being part of the alliance can get the company in front of more potential customers. Though nobody that I'm aware if has explicitly said this, I get the feeling that Applied DNA's wares are the only ones of their ilk within the BPA. (The 'ilk' in this case is forensics-caliber, DNA-based, counterfeit-testing equipment.)  Do I think this news is going to shoot APDN shares through the ceiling at tomorrow's open? No. I'm not even sure the stock will even flinch. I do feel, however, this is the kind of thing that may seem minor on the surface, but is actually major 'down the road' news.  Though their technology is superior compared to most things I've seen, Applied DNA has the same challenge any small cap company does - spreading the word about your product when you're competing with deep-pocketed companies. Now that much of their technology is at a commercial stage, effectively taking it to the streets is the key to taking the company to the next level.  So, though not a game-changer, the news is nice. The press release is below.  That said, Applied DNA had spent the better part of the last few weeks dormant in terms of news. Then last week they released the Supima news. Today they dropped the BPA update. I also know that earnings should be around the corner. You may also recall DermalRX (the company's other revenue-bearing venture) was put into motion in November. And above all else, their Signature DNA anti-piracy technology is being presented to potential customers.  What's my point? Maybe it's nothing, but I wonder if the company was sitting out the market's rough patch by sitting on some news as well. In turn, if we start to see a wave of consecutive little victories, I have to think the stock will respond. Pair up this currently un-loved (but gaining interest) stock with a bigger bullish tide, and my 'undervalued' radar starts to spin. Just something to think about.  In the meantime, I've got some thoughts on this long-awaited market bottom.    More Evidence of a Bottom?  Finally a decent day! Seven of the first eight trading days for the market were down days, so Monday brings the bulls' record up to 2 and 7. More importantly though, we got an up day shortly after we saw some of the market's underlying dynamics peak. I'm still not saying we're out of the woods yet, though I continue to think the market's telling us the worst is over.  You might recall my two biggest reversal clues are the ISE Sentiment Index, and the number of new NYSE lows (or highs, when searching for a top). Since our last update on those charts, we've seen some key milestones hit...and passed.  Last week, we saw 708 NYSE-listed stocks hit new lows. That was the highest reading since August, and the third highest reading in years. As the nearby daily chart indicates, readings that high are just too rare and hard to come by to persist; those tall peaks in new NYSE lows usually come at a bottom. (The weekly chart is even more of an eye-opener.) Though I'd still rather see a little more progress from the market to ensure this isn't a fake-out, I like the odds here.  My other favorite tool has been the ISE Sentiment Index.  Since its inception a few years ago, I've successfully found almost every major bottom within a few days using this tool. My weapon of choice was the application of Bollinger bands to the ISE Index reading....if the lower band was hit, we're probably in the midst of a capitulatory action.  You'll recall I was worried the last time I talked about this chart back on January 5th, as the reading really hadn't gotten KO'd...or beaten back down to a 70-ish reading where it gets when things are usually just painful for investors. Well, (and as I blogged on January 9th) we got finally got there. The chart tells the tale.  I'm still not married to the idea that a bottom has been made, but I guess you could say I'm engaged. In the grand scheme of things I prefer better odds with a slightly lower payout than a higher payout with weaker odds, and I think that's pretty much where things are with stocks right now....you gotta' decide for yourself how much risk you're willing to take.  The trump card is expiration week, which we're in right now. It's hard to tell whether this (today's) is the market's organic movement, or the effect of all those expiring options. The issue gets worse as the weak wears on.  That said, the new NYSE low and ISE Index charts make a heck of a compelling case, don't they? More to come on that matter. Here's the Applied DNA news:    Applied DNA Sciences Joins Brand Protection Alliance  Protecting the Integrity of Brands and Intellectual Property  STONY BROOK, N.Y.--(BUSINESS WIRE)--Applied DNA Sciences, Inc. (OTC Bulletin Board: APDN) and The Brand Protection Alliance, LLC (BPA) are pleased to announce that Applied DNA Sciences has been unanimously approved by the BPA board to join its organization. The BPA is committed to providing brand owners and global manufacturers with direct access to a comprehensive portfolio of technology and services providers in the field of product authentication and brand security.  "Applied DNA Sciences has a unique technological position that is a provocative example of the BPA's commitment to continually expand the depth and range of the technologies and services that we can offer to our clients. Applied DNA Sciences' technology broadens' our portfolio towards a defined goal of giving genuine brand owners more choices and the ability to authenticate products not only quickly but also cost effectively," said BPA President, Lynn Crutchfield. "We believe that Applied DNA Sciences' involvement in the BPA will also provide our customers with unlimited opportunities to employ forensic level products in their brand protection programs. We expect APDN's technology to integrate seamlessly with many of the offerings currently provided by other BPA members."  Applied DNA Sciences markets and sells DNA encrypted and embedded solutions that are forensically authenticated by machine readable devices. These solutions can be easily integrated with a range of thermal transfer ribbons, inkjet and laser inks, threads, varnishes, and labeling materials. Applied DNA Sciences' products can help protect a brands' intellectual property that can easily be eroded and/or compromised by counterfeiting, product diversion and other types of organized IP theft.  "Many companies are victims of these fraudulent activities and the problem is increasing in prevalence every year. As new members of BPA, we join an elite group of experienced brand security professionals whose products and services are selling through the broad marketplace of brands that require protection against counterfeiting and diversion. This is why we are honored to be invited to join the BPA," commented Dr. James Hayward, President and CEO of APDN. "We are very focused on providing unique DNA markers that fit with existing manufacturing processes and technologies. We believe that our SigNature DNA program is a highly viable and affordable approach that will be beneficial to the BPA membership and its current customer base, while also helping to attract new customers to APDN and the BPA."  About BPA  The Brand Protection Alliance was established to serve as a resource organization that assists brand owners in the design, development and implementation of customized, secure solutions against consumer product counterfeiting and diversion. For more information on the Brand Protection Alliance, visit the website at www.brandprotectionalliance.com.  About APDN  The statements made by APDN may be forward-looking in nature and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements describe APDN's future plans, projections, strategies and expectations, and are based on assumptions and involve a number of risks and uncertainties, many of which are beyond the control of APDN. Actual results could differ materially from those projected due to our short operating history, limited financial resources, limited market acceptance, market competition and various other factors detailed from time to time in APDN's SEC reports and filings, including our Annual Report on Form 10-KSB, filed on January 16, 2007 and our subsequent quarterly reports on Form 10-QSB. APDN undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date hereof to reflect the occurrence of unanticipated events.  MULTIMEDIA AVAILABLE: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=5584792 Contact:  Applied DNA Sciences, Inc.  Debbie Bailey, 631-444-8090  Fax: 631-444-8848/  info@adnas.com  http://www.ADNAS.com or  For The Brand Protection Alliance  Kim Windschitl, 716-691-6333 ext 2122  kim_windschitl@iimak.com  Source: Applied DNA Sciences, Inc.    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 Stockgroup Adds Another Recruit To Its Army To be a small cap company, Stockgroup Information Systems (SWEB) is adding some pretty big names to the team roster. Karl Buhr - former COO of Telemedia - is Stockgroup's new Chief Operating Officer. While at Telemedia he led the wireless mobile content company (sound familiar?) to a 400% increase in revenues. We suspect that's the key attraction to getting him on the Stockgroup team....to turn last year's purchase of Telecommunication System's Mobile Finance division into a revenue powerhouse. As you'll read below though, that's not the only feather in his cap. It was an idea we mentioned shortly after Stockgroup's last conference call. Wireless devices such as BlackBerries and iPhones (more than just cell phones) are a big revenue opportunity, as their users are willing to pay something of a premium for content they want delivered/displayed on their hand-held machine. That was kind of the point behind the acquisition of Telecommunication System's Mobile Finance arm as well as the rational for the deal with Reuters back in June. Up until then though, we felt that Stockgroup had only scratched the surface....and they had, as most of the company's attention since then was on the new website. Now that the website's mostly done though (the new one is winding down the beta test), it's pretty clear to us they're moving down the punchlist. Next in line is the proliferation and monetization of subscription-based wireless data delivery...something Karl Buhr has experience with.  The other item Buhr brings to the table is the successful monetization of websites (again sound familiar?). While he was the Director of Operations for 365 Plc., the company's sales grew from $12 million to $90 million. Not bad.  Again this points to an idea we brought up shortly after the most recent conference call...Stockgroup has a great revenue machine in StockHouse.com, but had not yet maximized its sales with the machine. We suspect Buhr's experience will aid that effort too. We suspect the impact to the top and bottom line could be found within two quarters.  Here's the press release.  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. To ensure newsletter delivery, you can add any additional email addresses you may have to the Small Cap Network Member List. Receiving the Small Cap Network 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 Small Cap Network recommends @yahoo.com or @aol.com for timely and reliable email newsletter delivery. 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