Dow Jones 10877.75 -50.35 1:07 pm PDT, July 21, 2006 NASDAQ 2022.16 -17.26 For info, visit access.smallcapnetwork.com S & P 500 1241.46 -7.67 Change your subscription status here Russell 2000 673.03 -10.58 VOLUME 06: ISSUE 56 For Ckrush, Having Fun is Serious Business There's an old saying "If you give people what they need, you'll make a living. If you give them what they want, you'll make a fortune." Well, if that's the case, then Ckrush Incorporated (OTCBB: CKRH) is on the road to riches. Under the guidance of President Jeremy Dallow and CEO Roy Roberts, Ckrush is hitting the nail right on the head when it comes to providing entertainment for their target market. And if fans of Ckrush Entertainment have half as much fun with the company's productions as we did writing about them here, then we have little doubt investors will be thrilled too. On with the show. Although only two years old as of this month, Ckrush has become a major media force. The incredible part, however, is not how the company has become a key piece of one media outlet (such as movies, music, television broadcast, etc.), but rather, how the company has become a key piece of all media outlets. Better yet, they've done exceedingly well in all of them. Ckrush Entertainment, the film-making arm of the organization (and the premier division), has completed three films set for release later this year. Ckrush Sports already has a long résumé of pay-per-view events and exclusive cable television content - primarily boxing related. Ckrush Direct will focus on the development of revenue generating products that appeal to the company's current target demographic. All three of these divisions not only work well, but work well together. And as you'll soon read, the launch of yet a fourth media outlet will complete the circle. The demographic Ckrush is looking for is by far the most profitable demographic group out there -men, and women, between the ages of 18 and 44. The target market is neither coincidental, nor luck. Those consumers were deliberately chosen because Jeremy Dallow knows that's where the money is. There are more than 70 million consumers in this group in the U.S. alone, which translates into 24% of the domestic population. Annually, it's estimated they spend over $200 billion a year. But those numbers are only half the story. The other half of the story is getting the attention of this demographic, which is where Ckrush excels. How? The company has a great deal of understanding about buying behavior, for males in particular. First, you build up the brand-name, and then you can sell them the product. These consumers are known to be more influenced by benefits and brand names than by price. Of course, this makes it much easier to charge a bit of a premium for Ckrush's content, much to the delight of the company and its shareholders. It seems everyone is competing for the 18 to 44 year-old market. So, getting the attention of the target demographic is by far Ckrush's biggest challenge. Don't worry though - Ckrush, clearly has their finger on the pulse of these consumers... considerably more than others seem to (as you'll see below). Let's take a detailed look at all three divisions and how they're positioning themselves as the premier names in their respective industries. After that, we'll take a detailed look at the newest (and very exciting) venture.   The Three Divisions Like the Three Musketeers, Ckrush's three divisions are "All for one, and one for all". Cheesy? That's an understatement! All the same, it's still conceptually true. Each division is unique, and could stand alone as an individual entity. However, when combined, there's an additional synergy where one arm feeds off of the other's success. To really paint the picture, however, a closer look at each division is needed. Ckrush Entertainment The company's bread and butter is the film-making arm. And, based on the 'star power' they've managed to harness, things are looking great. Although they are technically an independent film company, some of the key names they're listing in the credits are proven draws. Heard of Artie Lange? He's huge among the target demographic, brought to fame by stand-up comedy, television's Mad TV, and his involvement with the high-profile Howard Stern radio (and TV) show. Artie is being featured in "Beer League" - one of the company's first features. His fans are, well, fanatical...and they'll definitely be in line at theaters when the movie is released in September. The film tested incredibly well at the CineVegas film festival (in Las Vegas) in June, so the company is rightfully excited about the box office potential "Beer League" has. Other upcoming films include "National Lampoon's TV: The Movie", and "National Lampoon's Pledge This", which stars Paris Hilton (and don't think for a minute she won't be a huge box office draw). Other Ckrush film projects are linked to equally impressive names, such as William H. Macy, Felicity Huffman (Desperate Housewives), Alan Rickman, Peter Krause, and Sean Penn (as a director). By the way, actors and actresses at that level can pretty much pick and choose whatever projects they want. The fact that they chose to work with Ckrush says a lot about the kind of work Ckrush is doing. Kudos. Ckrush Sports If you've ever watched boxing by pay-per-view, on HBO, or on Showtime, then odds are you've probably got Ckrush Sports to thank for it. But it's not just about setting up some cameras...Ckrush is just as adept at event promotion, and developing individual boxers into major names. Heavyweight contenders David Tua and Shannon Briggs are under an exclusive promotional contract with Ckrush. The company has also brought famed boxing trainer Lou Duva into the fold as a consultant. If the name rings a bell (no pun intended), it's because he also guided the career of Evander Holyfield...so he clearly knows the sport. The point is, Ckrush Sports (like Ckrush Entertainment) is associating with all the right names. That's why we're convinced the company knows precisely how to keep expanding the pay-per-view business, even into other sports. Ckrush Direct Where Ckrush Entertainment and Ckrush Sports are the 'content' providers, think of Ckrush Direct as the 'product' and 'service' providers. This is the arm of Ckrush designed to actually market pay-per-view and on-demand broadcasts. But, the company is also looking forward to DVD sales, as well as licensed products related to any and all of the company's other productions. Who knows? Maybe a "Beer League" t-shirt will be the next big fashion fad among the gen-x'ers and gen-y'ers. The nice part about the 'Direct' division is its flexibility to sell or offer items to meet ever-changing consumer demand. Bringing It All Together Notice anything about the three divisions? They're all different, but they're all related. As we said above, they can feed off of each other to enhance their success (and the bottom line). But equally important is the focus the company can keep on creating and providing entertaining content. Rather than get distracted by venturing into businesses that aren't quite the right fit, Ckrush has defined what they do very clearly. In fact, president Jeremy Dallow probably said it best..."We build and control exciting content that people pay for." Quite frankly, we think that's an understatement, and doesn't do Ckrush justice. Their content is of the highest quality, and as such, people can and have paid a nice premium for it. Hence, we're touting the company to potential shareholders today.   LiveMansion.com...the Latest Installment Just a few moments ago, the last piece of the puzzle was placed, completing the whole Ckrush picture. Realizing how the target demographic is starting to utilize the internet as an alternative to traditional forms entertainment, Ckrush unveiled their final piece de'resistance...LiveMansion.com. At first glance it's just another website. After a closer look, however, it becomes clear LiveMansion.com is so much more than just a website. It is (and at the risk of being melodramatic) a glimpse into the future of the internet, where entertainment, community, and participation are all seamlessly integrated. Be sure to visit the site and see for yourself, but for now, let's just highlight the key points. The site includes... Music downloads Chat rooms Video games A chance to create your own profile for other participants to see An option to promote yourself or your business to the rest of the community Ability to upload your own videos for others to see and more... And if you can't read between the lines, the over-arching theme here is 'community'. The social networking aspect of the site is what's going to keep people coming back to the site, as well as attract new users. No other website quite captures the same community spirit while simultaneously offering it with such an entertaining spin. We'll warn you now, when you go check the site out, be prepared to browse it for a while. The cost to use the site? Zilch. Nada. That's why we're so confident it's going to be a big hit with...you guessed it, men and women between the ages of 18 and 44. The full press release is below.   The Opportunity (For Investors) OK, so you're probably wondering how a free social networking website is supposed to help an entertainment-content company. Honestly, it's an absolutely brilliant concept, which is why we're pumped to let you know about it here. In short, think of the internet as a two-way street (although you hopefully did already). You can send and receive anything that can be digitized. THIS INCLUDES VIDEO. Ckrush recognizes the next new media is digital media, and they're collecting their customer base now rather than try to compete for them later (like we said earlier, they really do have their finger on the pulse of their target consumer). Even though the internet broadcast industry is still in its infancy, it's still here, and it is the future. Think of it...pay-per-view sporting events and theatrical releases piped right into your computer. The flexibility over traditional television - and even theaters - is tremendous. And as far as the kind of content and delivery options are concerned, the sky's the limit. Oh, and did we also mention Ckrush just happens to create that kind of entertainment content? See the brilliance now? Ckrush not only creates the content - they also run their own delivery channel. But wait, there's more...remember how the internet is a two-way street? LiveMansion.com will also allow its participants to upload their own video content. All of those videos can then be taken by Ckrush and redistributed as licensed content through third-parties. Or, maybe even the next Artie Lange will be discovered through a home-made video uploaded to the site. Who knows? The sky really is the limit. We can't even conceptualize all the ways the company could drive lots of revenue within the very near future. The only limitation would be a lack of imagination about how to use all that content. But trust us, Ckrush has plenty of imagination, and more than enough know-how, to become a premier name in whatever entertainment or media outlet they choose. In simplest terms, we recommend adding Ckrush shares to your mix of holdings. The current price of 30 cents is a great entry point for a company on the verge of some huge achievements. True, one could argue Ckrush is still an unknown, but quite frankly, you know by now the best time to own a stock is before the company becomes a hot name. If you're waiting until afterwards, then you've missed the bulk of the gain. Case in point - Lion's Gate (NYSE: LGF). They too were an unknown independent film company when the company first went public in the late 90's. But, the current LGF price of 9.43 is almost three times higher than where it was when first issued in November of 1998 (and that can't be said about very many stocks). We see a lot of parallels between Lion's Gate and Ckrush. It just takes one great movie to put a company on the proverbial map. Considering "Beer League" or one of the National Lampoon's could be dointhat g so soon, it makes sense to get your position now. In fact, the fire has already been lit for some investors today, with the stock rallying from 25 cents to 31 cents just on the news about LiveMansion.com. However, there's still an enormous amount of upside potential for shares...just don't wait too long.   Ckrush Digital Media Launches LiveMansion.com Representing in Next-Generation Potential High-Growth Business Model for Digital Content Aggregation New Online Community Leads Proactive Strategy to Capitalize on Significant Valuations of Digital SectorMarket NEW YORK--(BUSINESS WIRE)--July 21, 2006--Ckrush, Inc. (OTCBB: CKRH), a cutting-edge media group capitalizing on the convergence of entertainment and digital technologies, has announced the launch of LiveMansion.com, an advanced online social networking website created to harness the burgeoning influence of youth-oriented online communities and to capitalize on cross-marketing opportunities and other potential high-value revenue sources. Ckrush's LiveMansion combines a number of marketing-driven innovations that target the Company's central strategy to build a substantial foundation of monetizable digital assets. LiveMansion.com is a vibrant community experience where members can meet and interact; create customizable rooms to explore and share personal interests, post photos, audio, and video, email one another and chat on line. ,. Members can enjoy exclusive content produced by Ckrush, including content generated from Ckrush's slate of feature films. Members will have the opportunity to post their own content as well. The Web site is the latest move to harness the immense cultural impact of interactive media to influence the Company's youth-targeted demographic. LiveMansion.com has been strategically designed as an engine for generating digital assets to build a long-term community that can be licensed to third-party marketers and leveraged for all of Ckrush's future entertainment projects. It has been developed to be a cornerstone medium as the Company develops a robust multi-media business - that includes film making, sports events, direct sales and now, a formidable social network on the World Wide Web. "LiveMansion.com gives us an essential tool for synchronizing our growing entertainment assets," said Jeremy Dallow, President of Ckrush, Inc. "Having followed and studied the trends in the online social network space, we developed the site to exploit gaps both functionally and operationally. As membership in these networks tends to build on itself, growing exponentially, we believe that LiveMansion.com's member audience will be the source of potential huge digital assets with significant potential for generating revenues." Ckrush plans to continue developing projects that are at the forefront of the industry's paradigm shift towards integrated multi-media. The Company is making aggressive moves in this category to solidify its market position for continued growth. While Ckrush continues to explore options for integrating the Web site into future projects, online social networking provides an environment rife with cross-promotions, advertising and branding opportunities, all of which can be powerfully combined with various media channels to mitigate investment risks and help generate the production of more profitable content. Ckrush plans on releasing a series of interrelated entertainment concepts, websites and promotional campaigns as part of its digital initiative. About Live Mansion.com LiveMansion.com is an advanced multi-media web destination that builds upon the growing strength of online communities and new-era viral marketing. The online social network has introduced a new-economy business model based on "participatory pop culture," creating multiple potential revenue streams. LiveMansion.com members can create their own virtual mansion with dozens of rooms, allowing them to explore their interests and socialize with other like-minded members, all in real time. The website is the cornerstone for a holistic entertainment experience and the engine for generating digital assets and building a long-term community . For more information, visit www.LiveMansion.com. About Ckrush, Inc. Ckrush, Inc. is a cutting edge entertainment and digital media group capitalizing on the global convergence of the traditional entertainment industry and the "participatory pop culture" revolution of online communities and digital technology. The Company produces feature films, sports programs and other content, and has developed an interactive social network, that targets young adults, a highly-coveted entertainment industry demographic comprised of 70 million-plus consumers with an estimated spending power in excess of $200 billion annually . Ckrush feature films slated to be released in 2006 include, "Beer League," starring Artie Lange, "TV the Movie," starring Steve O and Wee Man of "Jackass" fame; and National Lampoon's "Pledge This," starring Paris Hilton. Ckrush also - promotes and distributes televised sports events and other programming through pay-per-view, video-on-demand and retail channels. For investor-specific information about Ckrush, Inc., including recent news and stock price data, please visit http://www.trilogy-capital.com/tcp/ckrush/quote.html. For General Investor Information, please visit http://www.trilogy-capital.com/tcp/ckrush/. For additional information, visit http://www.ckrush.net. Forward-Looking Statements This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on management's current expectations or beliefs, and are subject to uncertainty and changes in circumstances. Actual results may vary materially from those expressed or implied by the statements herein due to changes in economic, business, competitive, technological and/or regulatory factors; acquisitions of dispositions of business assets; and the potential impact of future decisions by management. More detailed information about these factors may be found in filings by Ckrush, Inc. with the Securities and Exchange Commission. Ckrush, Inc. is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise. Contact: Ckrush, Inc. Jeremy Dallow, 212-564-1111 or Trilogy Capital Partners, Inc. Paul Karon, 800-592-6061   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 The Blog is Back! If you haven't checked out the blog lately, you're missing some of our best commentary (not everything we write ends up in this e-mail). Get our take on recent events, ask questions, gain access to the ideas and angles we don't have time or space to publish. Best of all, it's a chance for you to participate in our small-cap community. Take a look today.   Where's Oil Headed Next? Crude oil futures (light) ran all the way up to $80 per barrel last week on Middle East fears. But, the type and size of runup was nothing new. Over the last two years, each of those rallies has been met with a commensurate pullback to a long-term support line. Despite the panic, we're taking a cue from the last three days worth of price decline, and saying crude futures are likely to once again retest that support line. It's currently at $66.50, but rises slightly each day. By the time it might actually be reached, it could be closer to $68.00 or so. Longer-term, we still contend oil could go as high as $100. Between persistent turmoil in the OPEC region and the newly-realized vulnerability we have to hurricane-related threats to domestic oil production, it shouldn't be a surprise to see it happen. However (and as we're clearly counting on today), it's not going to get there in a straight line. (By the way, if the support line breaks, it would be a significant shift in the price trend as well as a major reason for consumers to rest easy. In other words, it could potentially be bullish for the rest of (non-oil-related) the market. However, it's only a long-shot chance at this point.) See the chart (and more) on the blog page. 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. Receiving the SmallCapDigest Newsletter in multiple locations is the best way of making sure you don't miss the next investing or trading opportunity! For web based email addresses, the SmallCapDigest recommends @yahoo.com or @aol.com for timely and reliable email newsletter delivery. Subscribe Here Note: Your email address will be kept strictly confidential, and will not be shared with any other entity for any purpose at any time. 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. Ckrush, Inc. has paid TGR Group LLC a fee of $30,000 for coverage of the company. In addition, TGR Group LLC has been granted 500,000 restricted warrants convertible into common stock at $.25 by Trilogy Capital Partners. In addition, TGR Group LLC has also been granted 750,000 free trading warrants convertible into common stock at $.25 by a non-affiliated third party shareholder for coverage of Ckrush, Inc. 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.