Dow Jones 10717.50 -67.32 10:30 am PST, January 2, 2006  NASDAQ 2205.32 -12.84 For info, visit access.smallcapnetwork.com S & P 500 1248.29 -6.13 Change your subscription status here Russell 2000 673.22 +0.00 VOLUME 06: ISSUE 1  Feature: Winning Calls of '05. Moving On to '06 Profits. The biggest sector holdover from 2005 will likely be the investor focus on energy stocks. Let's review where we are in that sector and then we'll pound the table a bit on some of the calls we made in 2005 that made--or saved you--some significant coin. Finally, we'll have a big finish detailing our promise for 2006. Our battle cry for 2006 is quite simple: to bring the most interesting, focused trading ideas/strategies that will make or save our readers a significant amount of money. We've Got Oil... On September 2nd, when the rest of the world was looking for $70-plus a barrel oil, post Katrina, we took the contrary view and called for price weakness and a return to more rational levels for both oil and natural gas. Our target was $56.50 and by late November/ December, the price had dropped slightly below that level. On December 14th, we further quantified the weakness and suggested investors use the Energy Select SPDR (AMEX: XLE) as a proxy for a renewed rally once the index hit $50. On December 27th, the XLE closed at $49.74. So what do we do now? The XLE slightly exceeded our $50 downside target. Since the year has been relatively warm so far, a stop loss at our $48.50 red line would be prudent. On the other hand, and probably more likely, when Ma Nature brings in the snow, this level could well be a significant entry point to take advantage of a quick rise to $55 and perhaps beyond.  Those 2006 March 50 call options, which were $4.20 a contract back on December 14th have, as we suspected, declined to under $3, making them more attractive. Might even want to look a bit deeper in the money or at the longer-term calls if that suits your view.  The link for the March 2006 XLE options follows. http://finance.yahoo.com/q/op?s=XLE&m=2006-03 Scroll across the top for shorter or longer expiries. Be vigilant as both the oil price, the XLE and its options as all can move quickly. We aren't even at the worst part of winter yet and as we've said and noted before, we're one cold snap away from a good rally in oil and natural gas. Stay frosty... Oh yes, there's lots more... On June 14th we alerted the readership to the coming biotech boom and noted the turn on the Amex Biotech Index (AMEX: ^BTK) for a sustained rally. The index has subsequently moved to 680.91 by year-end for a run of over 25 percent. Contiguous to that call we noted that the Biotech iShare (AMEX: IBB) looked a good bet at $65.57. Closing year-end at $77.24, investors have snapped a return of close to 20 percent. On October 28th, we called for a tradeable rally in the housing sector with the Housing Sector Index (AMEX: ^HGX) at 476. The index closed the year at 518. Throughout the year we made frequent, focused market calls regarding the NASDAQ, DOW and various sectors including those previously mentioned as well as drugs, interest rates and special situations such as Time Warner (NYSE: TWX) and Merck (NYSE: MRK). The latter was the pariah of Wall Street after the first Vioxx trial. Again, on August 26th, we took a strong contrary view and suggested at $27 to begin accumulating the shares. At a year-end price of just under $32, the almost 20 percent short-term return has been very pleasant for those who chose to follow our rationale. There are many more examples of both the value and uniqueness of the opinions and commentary found in the SmallCap Digest-- check out our 2005 archive. For 2006 we will continue to bring you great SmallCap names with both fundamental and technical opinions detailing buy, sell and stop price levels; something we feel is unique to our publication and puts it a cut way above our 'peers'. As well, we will bring you frequent market calls; both for the major indices as well as those sector specific coupled with ideas that you can use to take advantage of our opinion--be it long, short or utilizing options. And, as always, we will be scouring the market to bring you more amazing names such as MicroMuse (NASDAQ: MUSE) which doubled in less than a year, Informatica (NASDAQ: INFA) up 50 percent-plus in the last year as well as excellent trading opportunities afforded by the likes of Eden Energy (OTCBB: EDNE) and MIV Therapeutics (OTCBB: MIVT) among others--all of which we covered extensively and saw their share prices frequently rise by significant multiples. Every SmallCap article in 2006 will be heavy on what we refer to as the 'Wow' factor. Whether a it's a new trading name for your consideration, or a unique piece of economic, political or educational news, or more of our focused market calls, we guarantee to bring to readers' email boxes the most timely, interesting and profitable commentary and opinion available anywhere. Promise.   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 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 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 licensed investment professional 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 Group, LLC.  To the degrees enumerated herein,  this newsletter should not be regarded as an independent publication. Visit 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. From time to time TGR Group LLC sells shares in the open market it receives as compensation for coverage of client companies. Since the shares are received as compensation for services as previously disclosed, and not for investment purposes, the editors do not view the sale of the shares as contradictory to any advice delivered in the content. This should be viewed as a conflict of interest by shareholders or prospective shareholders of the client companies. The editor, members of the editor's family, and/or entities with  which the editor is affiliated aside from TGR Group LLC itself, 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 unless specifically disclosed in the newsletter. The profiles, critiques, and other editorial content of the SmallCap Digest and SmallCapNetwork.net may contain statements that appear forward as it relates to the expected capabilities of the companies mentioned herein. Some of the companies featured in the SmallCap Digest Newsletter pay an ESP (Electronic Service Provider) fee of $2,500 per month to an affiliated Technology Company for electronic delivery of this newsletter and other web related technology services. 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.