Dow Jones 8,645.77  +22.49 3:30 pm PST, December 6, 2002  NASDAQ 1,422.44  +11.69 For info, visit access.smallcapnetwork.com S & P 500 912.23 +5.69 To be removed, please click here Russell 2000 396.72 +2.27 VOLUME 02: ISSUE 80 Raging Bull in Defense? President Bush signed the fiscal 2003 National Defense Authorization Act into law this past Monday, December 2nd. The NDAA authorizes the Department of Defense to spend $375 billion to continue the transformation of the military to face future challenges and to fight the global war on terrorism. In the first quarter of this year, as shown in this chart, defense and homeland security related stocks were tearing up the charts while the NASDAQ was being flushed down the proverbial toilet. These indices have been tracking a little closer since the early September lows. More recently, as the NASDAQ broke out in November, the Defense sector dropped suggesting fund managers were reallocating dollars back to technology. Despite this divergence, there is one indisputable fact. Defense and homeland security spending is going up and is likely to stay that way for the forseeable future. The peace dividend we enjoyed in the 90's when the Cold War ended, the Berlin Wall came down, and both Russia and China embarked on the process of evolving to free societies is over. We are back in a heightened defense posture, but this time with a different enemy. The war on terrorism is likely to last for a long time, and many smaller companies that provide specialized technology for this enormous military and domestic security effort will prosper. In our never ending quest to uncover the next profitable idea, next Wednesday after the market closes we are going to introduce to you a small company that has fallen off everyone's radar screen. However, major fundamental news which we will share with you next week should put this stock squarely back in the crosshairs of investors seeking the next exciting rebound situation. SmallCap Digest Recent Track Record Alert Date Company Name Symbol Price at Alert Closing Price on 12/06/02 Return % to date 11/25/02 World Wrestling Entertainment, Inc. WWE $8.46 $8.64 +2% 11/08/02 Cel-Sci Corporation CVM $0.21 $.27 +28.5% 10/30/02 Take-Two Interactive TTWO $26.13 $28.92 +10.6% 10/21/02 Genesis Technology Group GTEC $0.13 $.185 +42.3% 09/07/02 Decorize, Inc. DCZ $1.90 $1.40 -26.4% 08/18/02 BarnesAndNoble.com BNBN $0.74 $1.87 +152.7% 08/08/02 Covad Communications COVD $1.17 $1.20 +2.5% 07/24/02 Covad Communications COVD $1.01 $1.20 +18.8% As you can see from the included table, the SmallCap Digest has compiled an enviable track record since the market bottom at the end of July, an accomplishment most other financial newsletters only dream of. As per the above table, one of our most recent ideas, Cel-Sci (AMEX: CVM) closed today at $.27 on the AMEX, up a stellar 28.5%, since introducing it to you one short month ago. We expect next Wednesday's trading alert to be just as exciting. Be prepared to check your inbox on Wednesday after the close. 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.  TGR Group LLC has been pledged a fee of $25,000 and 250,000 shares of newly issued restricted stock of Cel-Sci for coverage of the company for a period of one year.  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. 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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.