Dow Jones 10711.50 +22.73 1:02 pm PST, January 24, 2006  NASDAQ 2264.60 +16.13 For info, visit access.smallcapnetwork.com S & P 500 1266.63 +2.81 Change your subscription status here Russell 2000 718.05 +10.23 VOLUME 06: ISSUE 7  Feature: Sense Holdings - Detecting a Winner. If one could personify profit potential in a smallcap investment, it would likely have similar characteristics to those of biometric company Sense Holdings (OTCBB: SEHO): amazing proprietary security/detection technology (a dozen worlwide patents/licenses issued or pending) a market cap of just over $8 million and a low share price (around 25 cents).  As you read on, we're confident you'll agree that it's hard not to make a case for ownership of SEHO shares by risk-oriented investors. Tuesday's press release (see below) details the impressive progress SEHO has made in the development of its handheld detection technologies. So much so that the Company plans to move the initiatives into the commercialization phase later this year.  We continue to believe that the profit potential for shareholders who get onto SEHO early--read at these levels--will be significant in the 6-12 months hence. SEHO's detection technology works at the molecular level. A useful analogy demonstrating the robustness of the technology can be illustrated thusly: if a packet of sugar was dissolved into a swimming pool, the device could detect a molecule of sugar in the water. Now replace that molecule of sugar with TNT, heroin or anthrax--or any other substance within those categories--and water with air. The wide-ranging applications of the technology, not to mention the profit potential should come into very keen focus for shareholders. Let's look at the technical trading picture: As you will recall from our October Trading Alert, Beacon Equity Research produced a report and subsequent update targeting the shares to rise to 75 cents over the next few months--a triple from current levels. For our part, the shares have retraced 5/8 of last summer's up move. We like to get on stocks with this type of retracement pattern.  With a small amount of momentum--given the volatility of the shares and the decent volumes--this could well be an excellent entry point for a positive run. The price consolidation over the last few months bodes well for a move higher. Tiny Detectors. BIG Bombs. Huge Potential. I won't waste any ink on reiterating how dangerous a place the world has become. We know that. What we need are easy to use, cost effective, cutting edge products to avert those dangers. Alongside several proprietary biometric detection systems, SEHO's technology is on the forefront of the detection of explosives, narcotics and biological threats. In cooperation with the Oak Ridge National Laboratory (ORNL) the Company is rapidly developing technologies that will likely allow it to enter the commercialization phase of these handheld devices later in 2006. From the release: Sense also has expanded licensing and patent agreements with Oak Ridge and now owns all worldwide exclusive rights to the sale, manufacturing and distribution of this major new platform technology and all of its applications to detect explosives, chemical threats and narcotics. In addition, Sense has retained the right to acquire additional licensing rights for all biological sensing applications in the future.  As well, since ORNL is managed for the US Department of Energy, it's not much of a leap to conclude that SEHO occupies a favored place versus competitors to have its technology eventually deployed by the Government for Homeland Security applications.  As well, it is also not much of a further leap to see selected of these robust, cost-effective applications used in just about any venue where the public congregate--churches, hospitals, sporting events etc. From our November 14th piece: ... the flexibility, customization and robust nature of Sense's technology and products will undoubtedly open it up further to even larger markets in the private and commercial arena. Security and detection of a myriad of threats has become the province of corporations and businesses as well as all levels of government.  Realistically, this handheld detection technology could be used for airport luggage/passenger screening, a police officer sweeping a suspect's car, looking for biological agents in a hotel and virtually everything in between.  It should be obvious that the government/commercial potential is enormous for this type of detection technology. SEHO's patent protections, extremely competitive cost effectiveness coupled with ever increasing sensitivity and rapidly reducing size of the chips responsible for the detection will undoubtedly keep its technology at the forefront. Need another example? Perhaps the greatest terrorist risk comes from the thousands of cargo containers that land on US shores daily. Only 2 percent are swept for explosives or other nastiness. Picture the potential uses and profitability of deploying these handheld detection units at ports in the US or indeed worldwide. Finally, let me know if you can think of somewhere that wouldn't benefit from SEHO's detection technology, because I can't.  With commercialization likely on the horizon, accumulation of SEHO shares now looks like exactly the right timing.     PRESS RELEASE Sense Holdings Reports Key Progress in Development of Handheld Explosives Detection Device Technology  Sense R&D Partner Oak Ridge National Lab Designs New Generation MEMS Chips for Multi-Use Bomb and Chemical Detector  FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--Jan. 24, 2006--Sense Holdings, Inc. (OTCBB: SEHO - News; FWB:OUP), a developer of next-generation biometric and explosive detection security technologies for government and commercial security markets, today announced important recent progress report under a research and development project with the U.S. government's Oak Ridge National Laboratory to develop a new line of handheld multipurpose explosive and chemical detection device products for the global homeland security marketplace.  The recent advances include the development of a new generation of enhanced explosive detection chips with a range of enhanced capabilities, including increased detection sensitivity, increased flexibility and lower costs.  Sense is developing proprietary advanced Micro Electromechanical Sensor (MEMS) technology to create a line of low-cost, multi-use, handheld detection devices that security and law enforcement personnel can use to screen for concealed explosives, narcotics and chemical and biological threats. Sense is developing the technology under a joint research and development project with the Oak Ridge National Laboratory (ORNL), an advanced research facility managed through the U.S. Department of Energy.  The Oak Ridge-based scientific team working under the Sense Holdings agreement has designed a new generation of explosives detection chips that have shown improved sensory capabilities in ongoing experiments. These MEMS-chip components will be used to enable more sensitive detection of a variety of explosive materials that could be used in concealed bombs. The new-generation MEMS chips are also smaller than previous versions, with each chip now measuring 2mm x 3mm yet containing six sensors.   Other recent progress under Sense Holding's exclusive research and development agreement with the Oak Ridge National Laboratory (ORNL) includes the completion and installation of advanced laboratory and experimental equipment.     "Since executing our Company's CRADA research and development agreement with Oak Ridge in November, we have made exciting strides in our research facilities, scientific resources and the detection technology itself," said Dore Perler, CEO of Sense Holdings. "We believe this accelerated progress will enable us to move the explosive detection technology into the commercialization phase this year."  Sense has focused its initial efforts at Oak Ridge on developing for commercialization a powerful explosives detection technology, whose key advantages would include low cost, extremely high sensitivity and real-time operation while maintaining an almost complete immunity to false alarms. The technology is based on novel chips that would each fulfill different detection needs in the war on terror, including hidden bombs, unexploded ordnance and landmines.  "Additional research and development will enable us to develop more chips for testing, which will ultimately go into the final product," said Bruce Warmack, Principle Investigator on the Oak Ridge/Sense joint development project.  "Our goal is to produce a range of different chip sets for different applications, with each chip set having perhaps a dozen or more sensors, each responsible for sniffing out, or sensing, different types of chemical, biological and narcotic agents." A combination of U.S. agencies over the past decade has dedicated about $10 million to ORNL for the further development of this MEMS-based sensor technology, including the US Department of Energy.  "We feel confident that these tiny but highly robust sensors will be a valuable contribution to U.S. Customs, border patrol, and law enforcement for applications such as sniffing out cargo containers along with many other potential uses," Mr. Perler said. "Many advanced explosive detection technologies are quite expensive, but a key part of Sense's business strategy is to produce a next-generation detection device that will be extremely affordable, in order to put the this safety and security technology within reach of all the agencies and organizations that need such products, in the United States and around the world."    As previously announced Sense also has expanded licensing and patent agreements with Oak Ridge and now owns all worldwide exclusive rights to the sale, manufacturing and distribution of this major new platform technology and all of its applications to detect explosives, chemical threats and narcotics. In addition, Sense has retained the right to acquire additional licensing rights for all biological sensing applications in the future.    About Oak Ridge National Laboratory (ORNL)  ORNL is a research and development laboratory managed by UT- Battle for the U.S. Department of Energy (DOE) with core competencies in basic and applied sciences that offer many opportunities for strong partnerships with U.S. industries and academic institutions such as: Biological, Environmental, and Social Sciences Computational Sciences and Informatics Instrumentation, Sensors, and Controls; and Physical, Chemical, and Materials Sciences.  Licenses grant intellectual property rights to companies capable of transforming government funded inventions into commercial products or processes. As part of its licensing program, ORNL may negotiate upfront fees and royalties in exchange fro granting defined rights to the license. About Sense Holdings, Inc.  Sense Holdings is a developer of next-generation biometric identification systems, and nanotechnology-based micro-sensor technologies for government, military and commercial security marketplaces. The Company's wholly-owned subsidiary Sense Technologies deploys proprietary biometric technology based on advanced fingerprint technology and biometric integration to create a range of solutions for prisoner identification, time and attendance, access control applications and other markets. Sense's major customers include the U.S. Army, the U.S. Department of Corrections, Federal Express, and American Airlines. A second wholly-owned subsidiary, MSTI, is an emerging nanotechnology-based explosives detection technology development division developing a pipeline of advanced bomb detection technologies, including a prototype handheld explosive detection wand device for Homeland Security applications in airports and other security checkpoints. This hand-held detection alternative is designed to be a cost-effective solution with extremely high detection sensitivity and real-time operability. Currently, a proof-of-principle prototype is undergoing further research and development at the U.S. Oak Ridge National Laboratory. For investor-specific information about Sense Holdings, including recent share price data and news announcements, please visit http://www.trilogy-capital.com/tcp/sense. To view or download an Investor Fact Sheet about the Company, please visit http://www.trilogy-capital.com/tcp/sense/factsheet.html. Sense is also listed on the Frankfurt Stock Exchange under the ticket symbol, OUP. For other information, please visit http://www.senseme.com.  Cautionary Statement  This presentation includes statements that may constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect" or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, continued acceptance of the Company's products and services in the marketplace, the ability of the Company to develop effective new products and receive governmental approvals of such products, competitive factors, dependence upon third-party vendors, and other risks detailed in the Company's filings with the U.S. Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.  Contact: Sense Holdings, Inc., Fort Lauderdale Dore Perler, 954-726-1422 x 101 dore@senseme.com or Trilogy Capital Partners Paul Karon, 800-592-6067 (Financial Communications) 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 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. 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