Dow Jones 10287.34 +70.75 8:36 am PST, October 15, 2005  NASDAQ 2064.83 +17.61 For info, visit access.smallcapnetwork.com S & P 500 1186.57 +9.73 Change your subscription status here Russell 2000 633.15 +9.87 VOLUME 05: ISSUE 80  Feature: Xtreme Impresses. Volatility of Eden. We last visited with Xtreme (OTCBB: XTME) on September 26th, when the shares were 14 cents. The shares hit 20 cents in the interim, closing at 18 cents on Friday. Volumes have picked up nicely and the shares continue to appear poised for a decent upside move. If you need more evidence of Xtreme's growth and progress, consider these substantive happenings just since late September 2005: International Patrol/Security craft sale to Taiwanese government Xtreme awarded Fire/Rescue Boat order from Philadelphia PD. Seasoned, veteran Production Manager hired. Production doubled since July to address increased order flow. Acquired worldwide license to manufacture and market the Avenger line of security/patrol watercraft to augment current offerings. Announced a large $630,000 Challenger boat order from Lifeline Marine Press Release details can be perused here: http://finance.yahoo.com/q/h?s=XTME.OB  We continue to be impressed with the progress and potential of Xtreme. Accumulation of the shares at these levels is strongly suggested. Over the last 3 weeks daily volumes have taken a marked turn higher. On several days, the daily volume has approached or surpassed 200,000 shares. In our opinion, there is a concerted accumulation of the shares taking place, which adds to our case that the shares represent a decent portfolio addition for both short-term traders and long-term investors. We have also noticed that management has become more aggressive of late with sales, deals and other substantive corporate news. With a market cap of a mere $3 million, the share price should be significantly higher in our opinion. With the several sales orders (over $2 million since March by our calculation) noted over the last few months and likely more deals, dealers and sales to come, current share price levels will likely appear very cheap in the months to come. XTME has made amazing strides in the bolstering and exposure of its patrol/security watercraft sector and now with the addition of the Avenger line, it has products to address the needs of those clients who need boats in the 10-100 meter category.  Adding Avenger's client base to its own can only add to XTME inroads to both the US as well as foreign governments. More and substantive deals and sales will likely come over the next few months. Each one drives the company further and, we believe, will continue to be reflected in rising trade volumes and share prices.  The low market cap and rapid growth of the company leads us to conclude that the current share price represents a significant opportunity for risk-oriented investors that won't last much longer.     Waiting on EDEN News-wise Eden Energy (OTCBB: EDNE) has been quite quiet, which is likely due to competitive reasons. Obviously, the rise in oil prices has made the entire industry more exploration-oriented and tight-lipped. Given the quality of its properties and the fact that Eden paid way less for its leases a couple of years ago than it would have to now, investors should continue to be excited about the prospects for the company. We have no reason to doubt that EDEN is continuing with its seismic and other geological testing which will eventually result in drilling in the area. Drilling plans always take longer as rigs need to be accessed, permits acquired etc, etc.  Until then, here's the chart and comments: While the shares are a trader's delight, long-term risk-oriented investors should use dips such as these to add to positions. With the shares at $3.60-ish, they are at a level we've seen before. Eden has been a wild trader and there have been several profitable trading opportunities, most of which we've noted. If the shares can develop some horsepower, it may well repeat what it did last time it was down here and retrace this decline back  to around the $6 level. We've mentioned the shares often both here and on the SCBLOG. Our last suggestion on the SCBLOG on September 8th was that $5 was a critical support area and buyers at that level should employ tight stops. Turns out that price level was eventually violated and the stops were a prescient strategy. As we wait for more news from both Eden and others in the area, buyers of the shares at this level should also employ stops at or around the $3.40-$3.45 level. The only guarantee is that the volatility of the past will continue into the future.  As we've oft said; Any exploration play--no matter the commodity-- is inherently risky. As we've seen with the large movement in Eden's share price, strategic trading has and will likely continue to prove profitable. Investors should continue to trade the shares strategically with solid buy and sell targets as well as stops while we wait for news from the area. A small core position in Eden Energy for the long-term would likely be a reasonable strategy, as well. Once news comes out, it will likely be difficult to buy shares at good prices.     We Value Your Feedback Got comments, questions or suggestions? 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TGR Group LLC has been paid a fee of $25,000 by the company for coverage of Eden Energy. In addition, TGR Group LLC has been granted 100,000 options, exercisable at $.50 into free trading shares of Eden Energy, by Mokandi International. TGR Group LLC has been paid a fee of $25,000 cash and 500,000 shares of newly issued restricted stock directly by Xtreme Companies for coverage. Additionally, some of the companies featured in the SmallCap Digest Newsletter pay an ESP (Electronic Service Provider) fee of $3,000 per month to an affiliated Technology Company for electronic delivery of this newsletter and other web related technology services. 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. 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