Dow Jones 11006.14 -91.41 10:27 am PST, February 28, 2006  NASDAQ 2285.53 -21.65 For info, visit access.smallcapnetwork.com S & P 500 1281.90 -12.22 Change your subscription status here Russell 2000 731.03 -9.60 VOLUME 06: ISSUE 17  CEL-SCI Rockets Higher. Pre-opening, Tuesday, biotech CEL-SCI (AMEX: CVM) traded up to 92 cents. We Alerted the readership a scant two weeks ago when the shares were idling at 52-cents. At this writing the shares are trading strongly at 84-85 cents on significant volume--a rise of over 60 percent since February 10th. What to do now? Depends on whether you're a trader or an investor. The Company also announced today (release below) the issuance of another significant US patent regarding its LEAPS (Ligand Epitope Antigen Presentation System) technology platform for Autoimmune Conditions and Allergies. A discussion of this announcement follows our technical picture. There is little doubt that the shares of CVM have had an excellent early run. We believe that there is much more to come for CEL-SCI shares. What to do now depends on your perspective. As we have stated, the 83-85-cent level represents a technical resistance level. Traders might want to lighten up a tad and wait for either a 3/8 or 5/8 pullback as shown on the chart to fill in positions, but should maintain a decent core holding. Long-term investors should likely hold here and both groups should buy on dips should they occur. We see good upside potential for the shares, but we'd also like to see a sustained move above current levels at which time we will reassess our targets.  Given the volatility of these shares, as with most small caps, long-term investors--whether adding to or initiating a position--should always employ a physical or mental stop loss to protect capital/profits. More and Better. The newly issued patent announced today addresses the pretreatment and early therapy of Experimental Autoimmune Myocarditis with a compound developed by CEL-SCI resulted in significant reduction in heart enlargement and disease associated histopathological changes in mice. The detailed discussion of this significant development is in the release and I would direct you to give it a careful read, but the salient point is that:  "These findings could potentially lead to the development of a treatment for autoimmune myocarditis, a life threatening heart disease, which is characterized by an enlarged and weakened heart. Myocarditis is a precursor to dilated cardiomyopathy, a condition leading to a form of chronic heart failure (CHF) characterized by an inflamed heart. End stage CHF requires a heart transplant or death ensues." It is apparent that news and developments are increasing the visibility of CEL-SCI as evidenced by the both the rising daily volumes and increased share price. As we have noted, the discounted market cap of CVM when compared to a number of biotech peers should-- and may well already --be in the process of coming into line as investors weigh the commercial potential of the diverse and unique product mix of the company. CVM's addressing of some of society's most devastating diseases with novel immunology-based therapies appears to be gaining the attention of investors as it moves closer to Phase 3 trials, increases its patents and continues its robust R&D. The potential for CVM's technologies to use the immune system as a disease fighter represents a new therapeutic direction from the standard toxic, end-of-life, chronic disease management drugs/therapies of the Big Pharma companies. From the release:  Therefore, L.E.A.P.S. is thought to be a delivery vehicle that directs or controls the immune response to the desired outcome. This ability to preferentially direct the immune system is a major breakthrough. Any diseases for which antigenic epitope sequences have been identified, such as infectious diseases, cancer, autoimmune diseases, allergic asthma and allergy, are potential candidates for this technology. Those investors who wish to participate in this new generation of drugs/therapies would, we believe, be well served in the long-term by including CEL-SCI within the smallcap biotech section of a portfolio.   PRESS RELEASE CEL-SCI Receives U.S. Patent for Use of L.E.A.P.S(TM) Technology for Autoimmune Conditions and Allergies Feb 28, 2006 10:28:00 AM VIENNA, Va., Feb. 28 /PRNewswire-FirstCall/ -- CEL-SCI CORPORATION (Amex: CVM) has been issued a U.S. patent covering its L.E.A.P.S.(TM) peptide vaccine technology in the areas of autoimmunity and allergies. The new patent, U.S. Patent No. 6,995,237, is titled, "Preparation and composition of peptides useful for treatment of autoimmune and transplant related graft versus host conditions." The L.E.A.P.S. technology has also produced the patented CEL-1000 drug, which induced protection in animals against viruses and parasites and is being tested by the National Institute of Allergy and Infectious Diseases against the avian flu virus. This new patent builds on work by CEL-SCI scientists in collaboration with scientists from the laboratory of Dr. Noel Rose at The Johns Hopkins University Department of Pathology, showing that pretreatment and early therapy of Experimental Autoimmune Myocarditis with a compound developed by CEL-SCI resulted in significant reduction in heart enlargement and disease associated histopathological changes in mice. The compound used was derived from CEL-SCI's patented L.E.A.P.S. (Ligand Epitope Antigen Presentation System) platform technology. These findings could potentially lead to the development of a treatment for autoimmune myocarditis, a life threatening heart disease, which is characterized by an enlarged and weakened heart. Myocarditis is a precursor to dilated cardiomyopathy, a condition leading to a form of chronic heart failure (CHF) characterized by an inflamed heart. End stage CHF requires a heart transplant or death ensues. The incidence in the United States alone of dilated cardiomyopathy is about 200,000 people. The protection against experimentally induced myocarditis was statistically significant for both pretreatment and early therapy with the L.E.A.P.S compound. The response was antigen-specific and was associated with an increase in IL-13 in both the sera and heart tissue and of IL-1 alpha in the sera of the protected mice. Other studies from Dr. Rose's laboratory with IL-13 knockout-mice (mice missing the IL-13 gene) demonstrated the importance of IL-13 in this animal model of Experimental Autoimmune Myocarditis. Dr. Daniel H. Zimmerman, Senior Vice President Research, Cellular Immunology, at CEL-SCI said, "These studies showed that we are able to treat mice with ongoing heart disease. This may lead to treatment of autoimmune myocarditis in humans where the disease process is similar to the animal model being studied and reported here. The issuance of a U.S. patent protecting our novel work is very critical to our effort." The most well-known and common autoimmune diseases are insulin dependent diabetes mellitus, rheumatoid arthritis, lupus, multiple sclerosis, inflammatory bowel and Graves Disease. A common thread among these diseases is an immune response that "perceives" the person's own body, cells and organs as foreign. This, in turn, results in relentless attacks by the person's own immune system against his/her own body, eventually leading to debilitating disease, and occasionally to death. Likewise, the rejection in transplant condition is an immunologically based reaction. In immune mediated allergic reactions the L.E.A.P.S. vaccine is intended to redirect the immune response away from the harmful response in humans to a more subdued response that is not harmful. Current therapies for these conditions generally treat the symptoms of the disease but not the underlying cause of the disease as is done with the L.E.A.P.S. vaccine. L.E.A.P.S. is a novel T-cell modulation platform technology that enables CEL-SCI to design and synthesize proprietary immunogens. L.E.A.P.S. compounds ("constructs") consist of a peptide epitope associated with a disease-causing agent linked to a T-cell binding peptide ligand (TCBL). Together they induce the immune system to mount either a cellular (e.g., T-cell), humoral (antibody) or a mixed immune response as a means to treat, control or prevent disease. Therefore, L.E.A.P.S. is thought to be a delivery vehicle that directs or controls the immune response to the desired outcome. This ability to preferentially direct the immune system is a major breakthrough. Any diseases for which antigenic epitope sequences have been identified, such as infectious diseases, cancer, autoimmune diseases, allergic asthma and allergy, are potential candidates for this technology. More information on L.E.A.P.S. is available at http://www.cel-sci.com. The myocarditis work was supported in part by grants HL071352-01A1, HL67290, HL70729, AI51835 and HL077611 from National Heart, Lung and Blood Institute (NHLBI) and National Institute of Allergy and Infectious Diseases, Institutes of the National Institutes of Health (NIH). CEL-SCI Corporation is developing new immune system based treatments for cancer and infectious diseases. The Company has operations in Vienna, Virginia and Baltimore, Maryland. The Company's lead product Multikine(R) is cleared to enter Phase III clinical trials with advanced primary head and neck cancer patients. Other products, in the pre-clinical stage and funded with U.S. government support, have induced protection against a number of diseases in animal tests and are being tested against diseases associated with bio- defense and avian flu. SOURCE CEL-SCI Corporation   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 SmallCap ETF's. In future additions, we will be looking at some of the SmallCap Exchange Traded Funds (ETF) that have popped up. Most are similar in approach, but we'll delineate the differences and suggest some of our favorites and why some would be a good miss. Click here to view a list of several funds for your initial perusal. You'll see there are many types vying for your consideration. We'll attempt to cut the wheat from the chaff for y'all in future articles.   Russell MicroCap iShares Would be interested if anyone has found a chart of the Russell Microcap Index, which opened last summer. There is an iShare (NYSE: IWC) based on that index and it has done pretty darn well, up about 20 percent since a low last fall of $48. Volumes aren't that great, averaging less 50,000-100,000 shares a day, but I suspect it will grow as more folks get on the SmallCap train. The index is a capitalization-weighted index and includes companies ranging in total market capitalization from approximately $50 million to $550 million. Let me know what you think. Or any other thoughts you may have on the SmallCap market... email me here... 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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