Dow Jones 12567.93 -9.22 2:36 pm PST, January 18, 2007 NASDAQ 2443.21 -36.21 For info, visit access.smallcapnetwork.com S & P 500 1426.37 -4.25 Change your subscription status here Russell 2000 778.21 -10.56 VOLUME 07: ISSUE 8 Clearly Canadian Looks Ready To Roll We mentioned in a recent blog entry (several, actually) how Clearly Canadian (OTCBB: CCBEF) was popping up on investor's radars again after what had been a relatively quiet end to last year. This week, the theory has been verified with two press releases in two days - and the first since November. We often take news and events at face value, but sometimes, the best clues about opportunities are hidden in the less apparent places....like the sudden renewed interest in publicity.  With this idea in mind, we started taking an even closer look at what was going on up in Vancouver, Canada, where Clearly Canadian is headquartered. When we started assembling the pieces of the puzzle - like the stock's chart, the messages within the last two press releases, and the revived PR effort - the picture really started to come together for us.  Yes, we suspect a storm is brewing up north....a good one. Clearly's President, Brent Lokash, issued a letter to shareholders today (reprinted below) mirroring our thoughts. No need to be redundant, so we won't rehash what you can read for yourself in a moment. Instead, let's take a minute or two reiterate why we just can't let go of what seems like such a great investment idea to us.    A Better Fit Yesterday we learned Clearly Canadian had realigned the United States distribution network for its alternative drink lines. Frankly, we don't think the press release did the realignment justice. We'd equate it to a complete overhaul - the new distribution partners are far better suited to get alternative beverages on store shelves.  See, the market penetration of a product like beverages and snack foods largely lies with the distributor, and often directly with (literally) the delivery driver. The prior distributor may have had a strong presence in the carbonated drink arena - most likely its bread and butter - but may not have been well equipped to best promote a niche drink.  The new distributors, which are so far un-named, should be better suited at getting alternative beverages on the shelf at your local store. Why do we think that? Two reasons, one of which we inferred from the press release below.  The new distribution channel is no longer a single, national distributor. Rather, Clearly Canadian plans to use a network of small distributors, some of which are possibly regionally-based. Is smaller better? When it comes to non-mainstream items, yeah, we think it is. These smaller teams will likely have a more 'hands-on' approach with their products and manufacturers, and the distributor will be able to perform some salesmanship to get a little more/better square footage from the retailer.  As such, Clearly's drinks are likely to get the kind of attention they need (from distributors as well as drivers) to ultimately put their product in the hands of consumers.  Simultaneously, we expect advertising and promotion to become highly visible soon.  Where getting the right distributor in place could be considered a 'pushing' strategy, we're looking for Clearly to also throttle up their 'pulling' strategy. That is, by creating demand directly with the consumer (through print, TV, radio, etc.), customers are far more likely to grab a Clearly Canadian product the next time they've got a thirst to quench.  As Brent Lokash's post-script in the letter states, they'll be using NBA star Steve Nash in a promotion for the new product lines. In reading between the lines, we just get the feeling that the company has been brewing up something for months, and is now ready to introduce the reinvented Clearly Canadian brand.  When the push & pull approaches get firing on all cylinders, we think improved sales - and then earnings - could mean a total revitalization for the company, and its stock. In fact, we'd say the Clearly Canadian story is arguably one of the best turn-around stories we've seen in years. New management, new products, new partners....looks like they're pointed in the right direction to us.    The Supporting Evidence As we mentioned, there's no need to repeat the ideas found in the letter - it speaks for itself. However, there are a handful of other ideas we think point to better days ahead for this company and its shareholders.  The annual new age/alternative beverage market is worth $21 billion per year. That's a very big pond to be swimming in. For perspective, Clearly Canadian's typical annual revenues total in the $10 million range. As a major recognized brand in this market segment, we feel achieving further penetration should be relatively simple; even a small piece of that pie could be a windfall for Clearly.  Consumers are more health conscious than ever before. While water (flavored or otherwise) may have been a novelty a few years ago, it's now an important choice as we consider health and fitness factors. Obviously water is a smart no-carb option, but the company also plans to roll out other health-friendly lines in the near future.  The company is now debt free. This only became a reality in the last few months, so historical results may have been limited by a proverbial monkey on the company's back. We can't wait to see what this rebuilt company can do with a new-found financial flexibility. Perfect timing too....becoming debt free at the same time they plan on introducing new products (like drinks and snacks) as well as expand the footprint of existing ones.  In any case, here's Mr. Lokash's letter. Some of it was detailed above, while other parts we didn't get to touch on at all. We'll be keeping a close eye on the chart as well as any news; we suspect doing so will bear fruit (i.e. gains) at some point in time in 2007. By the way, we're working on a brand new trading idea for you, which could be rolled out sometime next week. There's still a little due diligence to be done on our part before we can say for sure, but so far, the opportunity looks very compelling. We'll finalize our end within few days, so be sure to keep your eyes peeled for a possible trading alert.    Clearly Canadian Issues Update Letter from the President Thursday  January 18, 2007. VANCOUVER, British Columbia -- Clearly Canadian Beverage Company (OTCBB:CCBEF):  Dear Shareholder,  I'd like to update you on the outcome of 2006 and upcoming developments for 2007 for Clearly Canadian Beverage Company.  First, I would like to personally thank you for your interest in the company and for your continued support.  Throughout 2006, we analyzed each phase of our business practices as well as the alternative-beverage and snack industry.  That has allowed us to enter 2007 debt free and with $5 million in cash. More important, the groundwork has been laid to expand into the organic product areas.  Clearly Canadian to launch new products...  On January 25, 2007, we will be launching our new enhanced waters, promising a new era for Clearly Canadian beverages.  Our 2007 goals for Clearly Canadian...  Continue to develop and strengthen our management team.  Actively pursue acquisition opportunities to strengthen our foothold in the beverage sector and diversify into the complementary organic snack sector.  Develop new and improved formats for delivering our core line of sparkling flavored waters to consumers.  Explore licensing agreements for including our name on a variety of other products.  Expand our business in Asia. As we study our new plans we are mindful of being part of a $21 billion industry that includes Monster(R), Red Bull(R) and vitaminwater(R).  Clearly Canadian Beverage Corporation is set to capitalize on this market opportunity with all of the steps that were put into place in 2006, including:  A foundation for a strong distribution network  New products  A strong balance sheet  Streamlined operations  We are committed to building market share and brand awareness for our products, returning to profitability and growing shareholder value.  Sincerely yours,  Brent Lokash  President  P.S. In conjunction with the launch of our new product lines, watch for the release of a Clearly Canadian video featuring two-time NBA MVP Steve Nash and a Nash promotional contest. To preview the video, go to www.clearly.ca on January 25, 2007.  About Clearly Canadian  Based in Vancouver, B.C., Clearly Canadian Beverage Corporation markets premium alternative beverages and products, including Clearly Canadian(r) sparkling flavoured water and Clearly Canadian O+2(r) oxygen enhanced water beverage which are distributed in the United States, Canada and various other countries. Since its inception, the Clearly Canadian brand has sold over 90 million cases equating to over 2 billion bottles worldwide. Additional information about Clearly Canadian may be obtained at www.clearly.ca.  Forward Looking Statements  Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expects", "intends", "plans", "may", "could", "should", "anticipates", "likely", "believes", "estimates", "potential", "predicts", "continue" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analysis and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management, including, but not limited to, the Company's belief that it can capitalize on its goals and plans set forth in this letter. These assumptions are subject to many risks, and actual results may differ materially from those currently anticipated. These risks include, by way of example and not in limitation, general economic conditions, changing beverage consumption trends of consumers, the Company's ability to generate sufficient cash flows to support general operating activities and capital expansion plans, competition, pricing and availability of raw materials, the Company's ability to maintain the current and future retail listings for its beverage products and to maintain favorable supply, production and distribution arrangements, laws and regulations and changes thereto that may affect the way the Company's products are manufactured, distributed and sold and other factors beyond the reasonable control of the Company. Additional information on factors that may affect the business and financial results of the Company can be found in filings of the Company with the U.S. Securities and Exchange Commission and with the British Columbia and Ontario Securities Commissions.  Contact:  Clearly Canadian Beverage Company,  Vancouver Shareholder Relations  Steve Cook, 800-983-0993  E-mail: investor@clearly.ca    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 Clearly Canadian's Stock May Be On The Verge Of A Breakout If you haven't gotten a chance to look at a Clearly Canadian (OTCBB: CCBEF) chart lately, you might want to. As we mentioned a few days ago, the stock was on a path to break past a critical resistance line. If it did, it could possibly open the upside flood gates, so to speak.  As of today, that resistance line around $2.80 has been breached. Today's high was $2.88, and the close was at $2.84.  To jog your memory, we first presented the possibility on January 10th, in a regular newsletter edition. At the time, it appeared as if CCBEF shares might be completing an upside-down (bullish) head-and-shoulders pattern. It would be complete - and confirmed - when and if the 'neckline' at $2.80 was finally breached. Although there are no guarantees with anything, the pattern does make upside follow-through a little more likely.  Don't forget, we have an official alert date of March 16th, 2006, when shares were at $2.55. It's been a wild ride between then and now, but our target of $5.15 still stands. And, based on the current chart, our optimism is growing by the minute.    Titan to Host Quarterly Results Conference Call They released the data a couple of days ago. We published our thoughts on the quarterly results yesterday morning. But if you're still looking for more, then we encourage you to participate in Titan Global Holding's (OTCBB: TTGL) conference call this Friday, January 19th, at 1 PM EST.  We're sure the same information we laid out will be reviewed, but we suspect there will be some detail added about the company's six divisions, and what the future may hold....near term, and long term. CEO Bryon Chance will be leading the conversation.  There will also be a chance to ask questions.  To listen in, callers within the United States can access the conference call by calling (800) 230-1085; when prompted tell the operator you would like to connect to the 'Titan Global Holdings conference call.' International callers can dial (612) 288-0340. An online audio web simulcast of the call will also be accessible at http://www.trilogy-capital.com/tcp/titan/.    No Need to Wonder - TTGL's Gap is Closed On Tuesday we brought up the possibility that Titan Global Holdings (OTCBB: TTGL) heroic rally was possibly going to falter, as it had left a (relatively) big 4 cent gap when it opened so much higher on Tuesday.  It's not that it would have been that big of a deal if it happened - it was only the four cents between $1.26 and $1.30. A pullback wouldn't necessarily unwind all of TTGL's chart momentum established over the last few weeks. The worry was that such a dip, slight as it may have been, could have inspired a panic. If the wrong traders get nervous at the wrong time and start bailing out of a stock, it could actually turn a short-term blip into a long-term headache.  Well, you don't have to worry any more. The concern over whether or not the gap will be filled has been answered.....it was filled yesterday. Better still, it doesn't seem to have jump-started a selling spree. The stock has stabilized pretty nicely, despite volume being greater than average behind this profit-taking.  With all this in mind, our bigger-picture opinion of Titan's per-share value doesn't change. We just view the gap's closure as the removal of on external force that could have potentially been working against any uptrend. Better now than later.  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. 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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 $30,000 and pledged 150,000 warrants with an exercise price of $2, currently convertible into restricted shares of Clearly Canadian, by Level III Research, for its coverage of Clearly Canadian. TGR Group LLC has been paid a fee of $30,000 cash by Titan General for coverage of the company. 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