Dow Jones 13683.22 +105.35 7:26 am PDT, July 12, 2007 NASDAQ 2666.95 +15.16 For info, visit access.smallcapnetwork.com S & P 500 1528.17 +9.41 Change your subscription status here Russell 2000 847.92 +7.95 VOLUME 07 : ISSUE 67 CCBEF's Forest Is Behind All The Trees With earnings season now here, it could be easy to get sidetracked by all the noise. That could be unfortunate though, if it meant losing sight of Clearly Canadian (OTCBB: CCBEF) - you may end up missing out on a big move. So, today's edition is just to make sure you keep it on your radar. Why? Two reasons......technicals, and fundamentals.  As for the fundamental story, we've summarized some of the recent growth announcements below. I have to say I was blown away by the results they seem to be on track to achieve - I didn't realize some of the numbers were so big. In terms of the chart's technicals, I see a potential breakout on the horizon. Plus, some of the underlying dynamics tell me traders are just itching to push this stock higher soon. Read on to get my take on the whole scenario right now.    A Cliché For Every Occasion Most of you probably recognize by now I have mixed (ok, polarized) feelings about clichés. I love them because they're an easy way for me to make a point. Yet I don't like them, well, because they're clichés. Nonetheless, I certainly wasn't at a loss for them yesterday when I was doing some bigger-picture thinking about Clearly Canadian. You can't see the forest for the trees.  It's not like Clearly Canadian hasn't had a lot to tell the market recently. Quite the opposite - they've been on a roll with news, with six press releases over the last month or so (and not just a bunch of 'fluff' either....real news). That may be why the story still seems a little obscure....it's too much for investors to process during even a relatively short period of time. Today's newsletter should cut out some of the clutter.  So what does the forest look like? Here's the broad brush stroke as I see it....the company's recent entry into the organic food world is working well. Check it out.....    As of last month, the company expects revenue from My Organic Baby in 2007 to grow over 350% from its 2006 revenue. Same store weekly sales are already up nearly 100% in the past three months.  My Organic Baby sales are expected to add close to $5,000,000 worth revenue in 2007.  The number of stores offering My Organic Baby products has more than doubled so far this year to approximately 800 stores. That figure is expected to double again within 12 months to approximately 1,600 stores.  The acquisition of natural snack food company DMR Food Corporation is expected to add close to $4,500,000 worth of revenue in 2007.  Just for perspective, last year (before the DMR and My Organic Baby acquisitions) Clearly Canadian did about $7.4 million in sales, making the expansion of all their new lines a huge opportunity for improvement. What else is there to say?  Talk about being in the right place at the right time!  I was talking to a guy who works closely with the company yesterday, and he said something to me that just stuck in my head as being very true, but very unrealized. You know how Clearly Canadian was originally billed as an 'alternative' beverage? Well, maybe the old alternative is becoming the new mainstream. In just the last couple of years, healthy-choice drinks and snacks have really made their way into mass market channels. The My Organic Baby line is now found in Babies 'R' Us stores. Canada's largest grocery store now carries Clearly's new Natural Enhanced Waters. The new distribution channel still being assembled is going to have muscle comparable to Coke's or Pepsi's when it's all said and done.  I really think organic and healthy foods are much more than fad. I see enormous future growth in this segment, and I'm not the only one. The thing is, at this stage of the organic/health game, if you're not 'in', it's going to be tough to break in when you're up against established names like Clearly Canadian. Why do you think Coke bough Glaceau for $4 billion? I suspect Coke knows it would be nearly impossible to introduce a new line. Good thing Clearly already has a foothold.  The whole is greater than the sum of its parts. I think the root of Clearly's recent growth is also going to be the root of any future growth. In short, their product lines are all complimentary. Somebody who buys an Enhanced Water at a convenience store may also pick up some sort of organic snack. Someone interested in an organic snack at a convenience store is also likely to be interested in organic baby food. Health savvy consumers who opt for organic baby food may also choose to drink water rather than soda. Point being, these consumers tend to make consistently healthy choices. Why shouldn't one company tap into that consistency?  The other synergy is the distribution network. I think it's got to be easier to add a new product line where another one already exists. Clearly Canadian (and DMR and My Organic Baby for that matter) already had relationships individually with their own outlets. Now those relationships can be used to expand all their lines horizontally as well as vertically. In fact, we're already starting to see this happen. I predict that the bigger their footprint gets, the faster it will start to grow.    Charting These Choppy Waters  Clearly Canadian's recent chart reminds me of one of those 'super balls'.....you know - the little miniature rubber ball that once it's set in motion, seems to just go on bouncing up and down forever. The thing is, I think one of these days the up-and-down action is going to stop and we're finally going to see a prolonged trend play out. Is now that time?  The optimist in me wants to say 'sure, why not?' The realist in me (and the part that I think does you guys the most good) just says 'maybe'. But, it's an important 'maybe' - one I think some other folks are already counting on turning into a 'yes'. Here's what I mean.....  Look at all those horizontal lines on the nearby chart. Though they don't mark every single peak and bottom with perfection, they catch most of them pretty well. I'd consider this a consolidation mode after the July-thru-August pullback from last year (consolidations don't just have to happen after a rally). These sideways periods are a chance for the market to basically regroup, and gear up for the next big move - whatever direction that may be.  So what makes me think the next move is likely to be a bullish one? Well for starters, just go back to the previous sections and reread the kinds of numbers the new and improved Clearly Canadian is putting up. Investors tend to take notice of that kind of stuff, and eventually, enough of them could take notice to really spark a buying spree. The other reason, though, is more objective and less objective - volume. I've also plotted an accumulation-distribution line and an on-balance-volume line on this chart. Both are confirming my suspicions with their general rise....the rallies are being made on higher volume than the dips. It hasn't been enough yet to yank the stock out of this trading range, but we seem to be getting closer to making it happen every week.  Right now, I believe the major hurdles are at $3.00, and at $3.25. Beyond there, we're back to new 52-week highs, without any real ceiling in sight until we get back to last year's high near $4.55. So, do I feel it make sense for anybody interested to wait for the breakout move, or to jump in now? You know, I think a decision like that has to be up to the individual. I will say this though....as each resistance line is breached, breaking the next one is apt to get easier. So, if now is indeed the beginning of something bigger, just understand you're sacrificing gains for added certainty by waiting. (But isn't that always the trade-off?)  Our target of $5.15 still stands, with a suggested stop of $1.99. We established that expectation early last year, based on the potential progress the company said they could make. So far, they haven't let us down. They may not get there tomorrow, but we still feel CCBEF shares are worth every bit of $5.15.      We Value Your Feedback   Got comments, questions or suggestions? Send 'em on over: Email the Editor 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 MIV Conference Call Scheduled..... ....and I for one am more than a little excited. After learning in early June that an MIV Therapeutics (OTCBB: MIVT) biocompatible heart stent had been implanted in a human for the first time, I really felt like the company had passed a milestone. It looks like some other (big) investors agreed, as MIV raised $11.7 million a few days ago with a private placement deal. Other than those two tidbits though, we haven't heard a lot from the company lately.  So why am I excited? Because the company had a bunch of things going in before that....things I'd like to hear more about. Specifically, in April, we learned MIV's acquisition of Biosync Scientific (and its heart stent technology) was finally reaping rewards, as the company began selling those Biosync stents and related devices in India, parts of Asia, and parts of Europe. It was MIV's first-ever revenue, and though those stents being sold weren't the highly-promising biocompatible stents MIV has been developing for a while now, revenue is still revenue.  Plus, I'd also like to hear the company's initial thoughts on getting their first hydroxyapatite-coated stent into a patient.  Fortunately, we won't have to wait much longer for an update - MIV Therapeutics will be hosting a conference call to get all of us up to speed.  The call is scheduled for Friday, July 13th, at 11 a.m. EST. Callers within the United States can access the conference call by calling (800) 398-9402. International callers can dial (612) 234-9960. When prompted, just tell the operator you would like to connect to the MIV Therapeutics conference call.  You can also listen to the online audio web simulcast of the call, accessible by clicking here.    Earnings Scoreboard (So Far) It's only just begun, but already we've seen some surprises and disappointments from major names. Motorola (NYSE: MOT) warned their Q2 sales and earnings would fall short of forecasts, and they followed that announcement with a dire mobile phone forecast.  J.C. Penney (NYSE: JCP) didn't release quarterly earnings yet, but did reaffirm their expectation of 77 cents per share in Q2.  Marriott Hotels (NYSE: MAR) improved their quarterly earnings by 11%.  Yum! Brands (NYSE: YUM) topped their estimates with an 11.5% rise in profits.  Genentech (NYSE: DNA) saw their earnings improve by 41% in Q2.  Home Depot (NYSE: HD) has not yet reported, but already warned of a shortfall.  Sears Holding Corp. (NASDAQ: SHLD) also lowered their guidance.  Alcoa (NYSE: AA) officially reported a 3.9% drop in Q2 earnings.  Lexmark (NYSE: LXK) reeled in its profit outlook as well.  Last month's retail sales, however, seem to be more of a mixed bag. J.C. Penney's June sales (same store) were off by 1.5%, while Wal-Mart's (NYSE: WMT) were up 2.4%. Chico's (NYSE: CHS) sales dropped 7.3% last month, and Costco (NASDAQ: COST) saw a 6% gain in June's top line.  Subscribe Information is power and timely information is profitable. Become informed and profit from Small Cap Network 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 Small Cap Network Email Newsletter on a regular basis. To ensure newsletter delivery, you can add any additional email addresses you may have to the Small Cap Network Member List. 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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 SCN. To the degrees enumerated herein, SCN 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://access.smallcapnetwork.com/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 and pledged 150,000 warrants with an exercise price of $2, currently convertible into restricted shares of Clearly Canadian, by Level III Research, for its coverage of Clearly Canadian. The aforementioned shares have become eligible to be free trading as a result of a registration statement. From March of 2005 through July of 2006, TGR Group LLC was paid a fee of $40,000 by MIV Therapeutics for coverage of the company. 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