Dow Jones 11247.87 -12.41 1:05 pm PDT, June 2, 2006 NASDAQ 2219.41 -0.46 For info, visit access.smallcapnetwork.com S & P 500 1288.21 +2.50 Change your subscription status here Russell 2000 737.33 +0.83 VOLUME 06: ISSUE 42 Getting in the Growth Groove A week ago Tuesday, we launched our initial profile of On the Go Technologies Group (OTCBB: OGHC), a leading multi-industry computer hardware and software reseller, systems integrator and corporate multimedia solutions provider. A compelling value play to say the least, the Company seems to be in quite a groove of late reaping the benefits of recent acquisitions that CEO, Stuart Turk, has masterminded over the last 24 months or so. In just ten short days since our initial profile, On the Go has announced over $1 Million in new order sales from leading North American and Canadian corporate giants. Now that's growth. Today, after the close, On the Go, we'll refer to them as OTG from here on out (welcome to the wonderful world of Internet acronyms), announced a $425,000 order to a major motion picture & TV digital effects studio (release below ), which wasn't the first order either to this internationally respected visual effects studio. Not too shabby considering it took OTG almost six months for the period ending January 31st of '05 to drum up as much revenue as they've managed to announce in the last two weeks. I should also add the stock was trading ten times higher then than it is now. That alone suggest shares of OTG are as ripe as ripe gets for a profitable summer harvest. Do farmers harvest in the summer? One of the biggest keys to investing in micro and small cap stocks is to get ahead of the growth curve of a company. Too often, investors wait until all of Wall Street's big name analysts are all over a stock issuing buy recommendations before they'll consider hopping on board. Unfortunately, it's often too late when this happens, as the future growth of the company in reference has already been priced into the stock. Yes, it does take some guts and even a bottle of Pepto Bismol from time-to-time, but if you can handle the risk associated with the micro cap and small cap market, there is no better reward than identifying a winner before the herd. The goal is simple. Be selling when the herd is buying. First in, first out. There's plenty of clichés out there. However you want to put it, you get the point. We believe we're way ahead of the OTG growth curve, and we are very compelled by the present value and growth prospects this stock represents at current price levels. You Are Whom You Hang Out With Something I tell my kids at least once a month, however, it being one of my favorite sayings, can be applied to business development and growth as well. Leveraging these well-established relationships can only assist OTG's growth efforts. The Company touts an impressive clientele. Among the many well-known industry leaders, OTG's client list includes: Air Canada Vacations, All State, Baxter Corp., Canadian Broadcasting Corp., Citibank, Fairmont Hotels, Four Seasons Hotels, Hertz, Hitachi, Imax Corp., Ingersoll Rand, Mary Kay Cosmetics, Mazda, PPG Industries, PricewaterhouseCoopers, Standard & Poors and Universal. The list goes on. One aspect of OTG we didn't go in length to cover in our initial profile is specifically what segments of the IT industry OTG operates. We believe the Company is focusing on some of the hottest growth areas of the IT market over the next few years. The Company is rapidly establishing itself as a respected industry competitor through its five major divisions: Compuquest and Infinity Technologies - Value added resellers to major North American and Canadian industry leaders, including Fortune 1000 clientele and vendors such as HP, Apple, IBM, SGI, Extreme Networks and Adobe. Helios/Oceana - A prominent systems integrator in the U.S. and Canadian entertainment and education sectors. Island Corporation - Compiling sophisticated digital solutions and networks for the medical community. Go Motion & Design - The Company's complete in-house multimedia studio offering distinctive multimedia services. Calm Before the Storm...An Investment Perspective From an investment perspective, I believe tech now, and in the coming months will present an excellent long-term investment opportunity when we look back five, ten and twenty years from now. With the launch of Microsoft's new Vista operating system scheduled for release early next year, Sun's new CEO, Jonathan Swartz, shaking up the vision of network computing as we know it, and the gazillions of dollars being spent on nanotech R & D, the technology frontier, arguably the catalyst of our new age economy, has oddly been ignored for the most part of late since oil, metals and housing have come to the forefront. As a side note, if you're anywhere near as fascinated with the future of the Internet as I am, reading Jonathan's Blog (link above) is seriously worth the time. If you had been selling tech during the bubble and putting your money to work in oil, metals and housing, then you'd be in excellent shape in the last few years, right? Here's the lesson many should have learned; for investors, take part in what nobody wants, wait until they want it, then wait a little longer and give it to them. So, with that being said, now would be the time for tech, right? Let's have a big picture look at a couple of major tech related indexes to assist my point. First, I've overlaid three major tech indexes: The Goldman Sachs Hardware (Green), Goldman Sachs Software (blue) and the AMEX Networking Index (red). I've circled the high of the bubble. All three of these indexes are well off their highs. Will they ever achieve those highs again? My best educated guess is yes. Do you want to be caught up in the buying hoopla when they're testing those highs, or would you rather be well positioned selling into those over exuberant rallies? The choice is yours. So when all of this starts to come to fruition, who is going to reap the benefits of all of the changes that will need to be made at the enterprise level? With respect to hardware and software transitioning, regardless which way the industry chooses to go, the value added resellers and system integrators will be right in the mix of it all. Bingo. So, with a Company like OTG well off its highs, trading in a range where many have given up and thrown in the towel, and showing the growth it has revealed of late, we believe some exposure in shares of OTG is well warranted in the speculative end of your portfolio. A Trader's Perspective on OGHC Upon profile launch, shares of OGHC traded on record volume, trading as high as $.22 cents on the day, a 10% gain for those who jumped in and out early. The stock has since pulled back to around $.18 cents, which is no surprise, as it appears to be up against a fair amount of selling for those who obviously have had enough. There's an old joke in the market, that as soon as you sell, the market will go up, so the selling does not come as a surprise to us. If you didn't have an opportunity to get in last week, this week's pull back appears to provide excellent risk reward if shares of OGHC can muster a new leg up. Like we mentioned in Wednesday's blog, if shares of OGHC can break above the $.22 cent level, it may prove to be a critical turning point in the stock. This daily chart of OGHC shows the short-term 3/8-retracement level of OGHC pegged at $.32 cents. If we can experience that move, it would represent a 78% gain from its current share price of $.18 cents. In order to minimize risk in the case of an unforeseen short-term move to the downside, we suggest a stop loss of $.15 cents for those trading in and out of the stock. Regardless when OGHC wants to make its move, when the selling in this stock is finally exhausted, this baby may rebound like a tightly wound rubber band. Let's get on with it. On The Go To Ship $425,000 Order To Major Motion Picture & TV Digital Effects Studio Concord, ON, Canada - June 1, 2006 - On The Go Technologies Group (OTCBB: OGHC), a leading multi-industry computer hardware, software and systems integrator, announced today that its Entertainment Division has received a $425,000 order from a leading motion picture and TV digital effects studio. The order, scheduled to ship within the next two weeks, consists of assorted computer hardware from manufacturers including Apple, BlueArc and ExtremeNetworks as well as cutting edge applications from software giants Autodesk and Adobe. This is On The Go's (OTG) inaugural order with BlueArc and its award winning Titan 2200 Storage Server technology. BlueArc storage solutions are optimized to improve the artistic, rendering and compositing capabilities of digital production studios and are regarded by the industry as the ideal solution for computer graphic production environments. OTG's Toronto-based client is an internationally respected visual effects studio specializing in the production of high-end digital effects and custom solutions for the television and film industry. Offering services from pre-visualization and on-set supervision to 3D modeling, animation and digital compositing, the studio has produced full-length movie feature work and television projects for several major studios and national networks. OTG president and CEO Stuart Turk said, "With the addition of BlueArc's server systems to our already stellar hardware ranks, OTG is better equipped than ever to provide unique and multi-tiered solutions to the broad spectrum digital industry. This order is one of many we have supplied this client. We look forward to continuing a strong relationship 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. OTG has established itself as a respected industry competitor through its five divisions: Value Added Resellers Compuquest and Infinity Technologies, both catering to Fortune 1000 clientele and vendors such as HP, Apple, IBM, SGI, Extreme Networks and Adobe; Helios|Oceana, a prominent systems integrator in the U.S. 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. The company's intention is to maintain sustained growth in the years to come via continued development in its existing divisions and an aggressive acquisition schedule. For more information, visit http://www.oghc.com or http://www.onthegohealthcare.com/video For investor relations information, contact Frank Hawkins or Julie Marshall, Hawk Associates, at (305) 451-1888, e-mail: info@hawkassociates.com . To be added to On The Go Technologies Group's e-mail list for company news, visit http://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. 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 NeWave's Money Machine We're extremely excited about the prospects of our March profile, NeWave, Inc. (OTCBB: NWWV). Up over 100% since our initial profile piece, it appears we've identified NeWave at just the right time. And yes, it is about timing. The Company came out prior to the open this morning announcing during the month of May, the Company reduced debt by $550,000 with cash from operations. NeWave's CEO, Michael Hill, goes on to say, "Over the past month, we've repaid $550,000 in debt from cash flow. One of our stated strategic objectives for 2006 was to decrease our debt by 50% and I am thrilled to announce that we've achieved that in just five months. That being said, we will continue our pursuit of significantly stronger financial performance through further debt reduction and earnings growth. We believe that these goals are attainable this year given the current robust state of our overall business and look forward to sustaining our momentum." Click here to read the release in its entirety. For you cash flow lovers, in reviewing the Company's most recent 10Q, NeWave's net income went from a ($1,291,480) loss in the quarter ending March 31 st of '05 to a profit of $194,380 in the same quarter of '06. Now they announce the reduction of 50% of the Company's debt in five short months, it appears the Company is on the fast track toward continued record revenue and profitability, all of which should serve the price of NWWV shares well.   Clearly Canadian Gets Picked Up We discovered yesterday, Dr. Robert M. Valuk, Editor of the value-based, conservative newsletter, The Financial Report Card, picked up Clearly Canadian (OTCBB: CCBEF), our darling beverage stock, for spotlight coverage. We're in good company considering Dr. Valuk is regarded as one of America's top value stock experts. It appears Dr. Valuk announced a strong recommendation for Clearly Canadian. Dr. Valuk identified a variety of reasons for his recommendation, including new management, a newly appointed advisory board and members of the board of directors with extensive experience in the beverage business. He also cited the launch of new products that included the new reformulation of its original drinks, as well as the introduction of an oxygenated sports water drink. According to Valuk, "While the company is not currently showing profits, their revenues have increased 33% over April figures for 2005, and their private-label beverage business was up 147% in the 6 months ending March 2006." A new marketing strategy also looks promising with a plan to make the company profitable by 2007. Given the current revenue growth, Dr. Valuk believes Clearly Canadian can reach its goals. Considering its current price and the strong possibility for earnings in 2007, Dr. Valuk is estimating a 1-year target price of $5 a share. However, he goes on to say that his own estimate may be too conservative and if the management team can convert the marketing strategies and anticipated revenue growth to "bottom-line" profits, a price of $10 in 24 months may be possible. Since we profiled Clearly before anyone else, what does that make us, the foremost expert on value stocks? Seriously though, this is good news, as it continues to validate what we've thought all along about Clearly Canadian. Give this play some time and we believe we've got a real winner on our hands. Subscribe Information is power and timely information is profitable. 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If you no longer wish to receive the SmallCapDigest, simply follow the instructions located at the bottom of every SmallCapDigest Newsletter Edition. Unsubscribe Here D I S C L A I M E R: The Small Cap Digest, the Small Cap Network, its website and email newsletter (hereafter, cumulatively referred to as "SCD") , is an independent electronic publication committed to providing its readers with factual information on select publicly traded companies. SCD is owned and operated by TGR Group, LLC ("TGR"). 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 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 $60,000 by NeWave 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 2004, MarketByte LLC was paid a fee of $25,000 in cash and 750,000 newly issued, restricted shares by NeWave for coverage of the company. 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