Dow Jones 11125.33 -18.73 5:00 am PDT, May 23, 2006 NASDAQ 2172.86 -21.02 For info, visit access.smallcapnetwork.com S & P 500 1262.07 -4.96 Change your subscription status here Russell 2000 715.25 -7.29 VOLUME 06: ISSUE 39 Feature Profile: Growing...Growing...Gone. Every year we work to pull a few proverbial rabbits out of our hat, blockbuster micro-cap gainers, that we feel will challenge the return percentages of some of the most successful hedge funds on the planet. Most recently, readers will recall CEL-SCI (AMEX: CVM), revisited at $.50 on Feb. 10th, which since rocketed to a high of $1.50 for a 200% gain, and turnaround idea NeWave (OTCBB: NWWV), profile launched on March 22nd at $.18, charging to $.41 for a 128% gain. In our diligent quest to bring readers ideas that outperform our peers, we've recently identified Canadian based On the Go Technologies (OTCBB: OGHC) as an extremely compelling value play in what has, of late, been the very quiet space of Information Technology. I'll make an important point later in the article regarding the "quiet space." For now, we'll focus on getting you "in the know" about On the Go because when compared to its peers, this under followed situation would be fairly valued in the $.70 range - more than three times its current share price. Therefore, we feel now is the right time to start accumulating shares of this rapidly growing company. The Company has been flying under the radar as Stuart Turk, CEO and Chief Strategizer behind this brilliant roll-up strategy, has managed to assemble a holding portfolio of IT based companies that he is leveraging to the hilt, providing solutions in computing for many top corporate giants throughout North America such as Universal, Pricewaterhouse Coopers, PPG Industries, Citibank, Hertz, and Imax, among others. In just a little over a year, the Company has acquired four well-known VARs and system integrators in IT that have collectively and synergistically added to the accelerated pace of On the Go's rapid expansion. With now five key divisions underneath its high tech umbrella, the Company is leveraging its talent pool and numerous vendor relationships to provide an impressive clientele with creative IT solutions in a vast array of industry groups including health care, film and TV, manufacturing, banking, education and research. The Company recently added the insurance industry to their list, as evidenced by their announcement this morning of the phase I delivery of a product systems order to a major Fortune 100 Insurance Company (release below), North America's largest personal lines insurer. Turk was quoted as saying, "Being an active part of this client's expansion is a solid addition to our already strong 4th quarter revenue stream. It's also a pleasure working with clientele of this caliber. We look forward to long term growth with them." With a number of thriving revenue-producing divisions under their belt and their aggressive growth strategy, On the Go has positioned itself as a leading solutions provider, rich in versatility and revenue streams. We believe On the Go's corporate performance will be the catalyst for excellent share price appreciation in the coming months.   Value Revealed in the Numbers On the Go Technologies Group is among the likes of Electronic Data Systems (NYSE: EDS), Accenture (NYSE: ACN), Computer Sciences Corp. (NYSE: CSC), and the technology consulting arms of IBM (NYSE: IBM) and Hewlett-Packard (NYSE: HPQ) embedded deep in the IT industry, which includes 35,000 companies that generate a total of about $150 billion in annual revenue. Most companies are small with annual revenue less than $5 million; only about 100 have annual revenue greater than $100 million, but they control more than 55 percent of the market. This bodes well for On the Go, as they have sufficiently surpassed the "small" stage and appears well on their way toward establishing a major footprint in the North American IT Space.  For the six months ending January 31st of this year, the Company posted record revenue of $13,207,196, a 785% increase compared to the same period a year ago. Additionally, the Company appears to be on track to exceed $30 Million in sales for the year-end July 31, 2006 . Based on its current market cap of roughly 2 Million, this pencils out to a compelling price to sales ratio of 1 to 6. To put it into perspective, Electronic Data Systems currently trades at a price to sales ratio of roughly 1 to 2.  If the Company can start posting profits in the quarters ahead and hit their revenue projections of $30 Million for the current year's end, we see On the Go shares trading at a price to sales ratio of at least 1 to 4. This would peg the share price at $.73 cents based on its current price of $.20 cents, a potential 265% increase. We'd take it.  Anytime we're looking at small companies for potential stock price appreciation, we try to identify opportunities where there exists a discrepancy in the current market value when compared to its bigger brethren. Since smaller companies often grow at much more rapid rates, it becomes quite obvious to us when looking at On the Go's financials that there exists tremendous upside potential in the stock.    An Appreciation for Founding Fathers... If you believe in investing in management, then in our opinion, you definitely want to own a piece of Turk and his Team. Featured in CDN, one of Canada's premier IT industry publications, Turk is quoted as saying; "I want to create an empire, but strictly in IT." He goes on to say he will continue building his empire through organic growth and acquisition. Nothing profound yet, right? Here's what caught my attention. Turk stated, "We acquire company founding fathers, we will not acquire a company without its founders coming on board. We need the relationships, continuity and their vision." That's a big statement, in my opinion, since I do have a pretty extensive business management background. I could write a whole edition on the importance of that statement, but the bottom line is, Turk realizes the value of bringing the founders on board and letting them do what they do best. A winning formula if you ask me.   Timing IS Everything Whoever said timing isn't everything should be taken out back to the woodshed. Would you have rather bought On the Go back in November of '04 at $3 per share or today at around $.20 cents? Sometimes it pays to avoid the noise (see our previous edition on noise). There are a couple of reasons why we feel now is the time for On the Go. First, usually when a company starts getting aggressive on the acquisition trail, the acquiring company initially gets hammered as it issues stock and cash, often diluting the company in the process. This was obviously no exception for On the Go in the last couple of years. However, eventually, if you're patient and the company's acquisitions start to bear fruit, that's ultimately what starts driving the share price in the other direction. The second reason is (you'll likely agree) that most investors simply don't care about stocks within the IT sector right now. Most are well off their highs and investors are currently infatuated with energy and metals. Well, one thing we can always count on in the market is for things to change. I firmly believe that the optimal time to start adding positions to one's long-term portfolio is when a particular industry or sector is just plodding along in what I call the "quiet space." Nobody could care, little volatility, boring if you will. IT is in that space right now. Identifying the turning point of these particular situations is no easy task. However, volume is your friend. This weekly chart shown of OGHC clearly shows shares of the Company have been on a decline for the last couple of years, but note the significant volume interest of late, as the stock reached the $.20 cent level. This is a signal for us that the stock may be turning the corner now. Couple this with the recent record revenue announcements, and it appears the Company is getting traction. We obviously want to be out in front of any big moves; therefore, we feel the current risk reward for OGHC right now is optimal.   ON THE GO TECHNOLOGIES GROUP DELIVERING ON SYSTEMS ORDER FOR FORTUNE 100 INSURANCE COMPANY CONCORD, ON - May 23, 2006 - On The Go Technologies Group (OTCBB: OGHC) ('the Company', 'OTG'), a leading multi-industry computer hardware, software and peripherals VAR and systems integrator, and corporate multimedia digital service solutions provider, announced today that the Company has shipped Phase 1 of a Toshiba product systems order to a Fortune 100, North American insurance company. A second, and final, phase is to be shipped shortly.  The entire order is designated as part of the client's expansion of their Claims Department. OTG has worked with many other Fortune 100 and 500 clients in this same respect, both as a valued alliance in building upon and adding unique improvements to existing system structures and networks, or developing entire IT projects from the ground up.  Founded in 1931 and publicly traded on the NYSE, this major client is North America's largest personal lines insurer. The corporation sells 13 major lines of insurance and works with 70,000 industry professionals. They have over $150 Billion in assets and operate in 49 states throughout the US , and in Canada. "Being an active part of this client's expansion is a solid addition to our already strong 4 th quarter revenue stream. It's also a pleasure working with clientele of this caliber," Stuart Turk, Company CEO, stated. "We look forward to long term growth with them." About On The Go Technologies Group On The Go Technologies Group is a leading, North American corporation focused on acquiring versatile and profitable companies in the IT sector. By way of its five divisions to date: Value Added Resellers Compuquest and Infinity Technologies, both catering to Fortune 1000 clientele and vendors like HP, Apple, IBM, SGI, Extreme Networks and Adobe; Helios|Oceana, a prominent systems integrator in the US and Canadian entertainment and education industries; Island Corporation, compiling sophisticated digital solutions and networks for the medical community; and Go Motion + Design, the Company's complete in-house multimedia studio, OTG has established itself as a respected industry competitor. The Company's intention is to maintain sustained growth in the years to come via both continued development in their existing divisions and an aggressive acquisition schedule.  For more information, visit: www.oghc.com or www.otcfn.com/oghc To be added to On The Go Technologies Group's email list for Company news, please visit: www.onthegohealthcare.com/new_site/inv_pkg_form.htm This press release contains forward-looking statements that involve a number of risks and uncertainties. These forward-looking statements contains words such as "expects," "believes," "anticipates," and "intends." Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include, but are not limited to, economic conditions affecting the B2B environment; continued ability to obtain hardware, software and peripherals at competitive costs; the Company's ability to finance its planned expansion efforts; the Company's ability to manage its planned growth; and changes in regulations affecting the Company's business and such other risks disclosed from time to time in the Company's reports filed with the Securities and Exchange Commission. The Company does not intend to update any of the forward-looking statements after the date of this document to conform these statements to actual results or to changes in management's expectations, except as required by law.   Company Contact: Al Kau 888-795-3166 (California) al@thesearchforvalue.com Investor Relations Contact: Geoffrey Eiten OTC Financial Network Tel: 781-444-6100 ext. 613 geiten@otcfn.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 NWKI - The High Rise Life Vegas 888, ever heard of it? Las Vegas is going through an astounding residential overhaul in and around the City, and will likely emerge as the New Millennium example of metropolitan living when it's all said and done. Vegas 888 is an in-process condominium development with lofty plans of becoming the Premier Vertical Residential Address upon its completion. The development promises to set new standards in design, lifestyle, location and amenities for its owners. If you've been to Las Vegas recently, you know what we're talking about. State-of-the-art high-rise living with amenities that rival the most luxurious in the world is cropping up all over the Sin City . This new breed of high society residential resort-like living is opening the door for tech heavy solutions' providers such as Kelley Technologies, a subsidiary of Network Installation Corp. who recently identified these trending opportunities in Vegas. So much so, the Company moved its operations there. It appears things are going as planned. Yesterday after the close, Network Installation Corp. (OTCBB: NWKI) announced that subsidiary, Kelley Technologies, was awarded an exclusive contract for the provision of interior technology amenities for the Las Vegas-based Vegas 888 luxury condo development. The contract is valued in excess of $10 million. The Vegas 888 project was launched in November of 2005, with site work and sales center construction commencing in early December of 2005. Currently the project is on schedule for its intended completion during the first quarter of 2008. Click here to read the press release in its entirety. For those that missed it, the recent Network announcement comes on the heels of the Company also announcing record quarterly revenue of $6.8 million for its first quarter of '06, an increase of 800% over the comparable quarter in '05. Now if that's not significant revenue momentum, then I don't know what is. Hopefully, the Company has more mojo queued up in the pipeline. Time will tell.   A Russell Perspective For all of those panicky market naysayers out there screaming from the mountaintops to sell your micro and small caps, we've got a little something to put things into perspective. Here's a monthly chart of the Russell with our favorite moving average, the 3x3 DMA. Although we agree that volatility has finally arrived once again, the Russell has simply pulled back to the 3x3 DMA on the monthly chart. A move it has made at least three times in the last three years before heading much higher. Sure, the broader markets are starting to look a bit toppy (if there's even such a word), sell in May go away, we are entering the summer doldrums, oil's through the roof, yada yada yada. But remember, money has no home, so it's going somewhere. And if you think I'm the only technician that sees small caps as an excellent buying opportunity right now, then you're giving me way too much credit. Lastly, consider this: Which size company is more apt to making quick adjustments and modifying their operational and/or financial strategies to adjust to a changing economic environment? If I have to answer that question for you, then maybe you're reading the wrong newsletter. As always, we welcome your comments, suggestions and feedback. Write me at: editor@smallcapnetwork.com. I look forward to reading your mail. 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 of fee of $30,000 cash and 1,000,000 shares of newly issued, restricted stock by On the Go Technologies Group for coverage of the Company. TGR Group LLC has been paid a fee of $30,000 and 200,000 newly issued restricted shares of Network Installation for coverage of the company. In addition, one of the principles of TGR Group LLC is also a principle of MarketByte LLC. In a separate contractual relationship in 2003, MarketByte LLC was paid a fee of $25,000 in cash and 500,00 newly issued, restricted shares by Network Installation for coverage of the company. The term of MarketByte's obligation to NeWave has expired. The aforementioned 500,000 shares issued to MarketByte LLC have become free trading, and whatever number remains could be sold at anytime. This should be viewed as a potential conflict of interest.  From time to time TGR sells shares received as compensation for coverage of client companies. Shares received are sold in the open market. Since the shares are received as compensation for services as previously disclosed, and not for investment purposes, TGR does not view the sale of the shares as contradictory to any opinions delivered in the content. This should be viewed as a conflict of interest by shareholders or prospective shareholders of the client companies.  TGR, its Members and Members' families, 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.  All statements and expressions are the sole opinions of TGR and are subject to change without notice. A profile, description, or other mention of a company within SCD 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.  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 TGR.  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.