Dow Jones 12510.14 -63.71 9:06 am PDT, April 11, 2007 NASDAQ 2464.62 -12.99 For info, visit access.smallcapnetwork.com S & P 500 1442.63 -5.76 Change your subscription status here Russell 2000 808.66 -5.85 VOLUME 07: ISSUE 38 Feature: Phinder Today May Prove Prudent Tomorrow  Company Name: Phinder Technologies , Inc. Stock Symbol : PHDT Coverage Initiated: April 11, 2007 Current Price: $0.25 Average Volume: 133,100 52 Week Range: $0.11 - $0.34  Suggested Target: $1.25 Suggested Stop: $0.14 Though only a few days removed from our last small cap pick, we don't want to wait another minute to share what we think is another stock with monster-sized potential for gains. As a reminder, the suggestion from last weekend was MIV Therapeutics (OTCBB: MIVT), which is already up more than 18% in just a little over two trading days. Better yet, today's idea looks to us like it has just as much untapped upside as any of our recent suggestions. So what do we think is likely to be the next big winner in our hot streak? We're convinced Phinder Technologies (OTCBB: PHDT) is the right answer. After all, the company seems to have mastered the art of growth. Revenue for their quarter ending on December 31st, 2006 was merely 88% better than the same quarter a year earlier. Better yet, for the nine months ended on 12/31/06, Phinder is 180% ahead of the same period for fiscal 2006 (they ended their fiscal 2007 on March 31st).  And believe it or not, Phinder may have yet to actually hit the 'explosive' portion of its next growth phase. Like MCI and Sprint were in the right place at the right time when deregulation derailed telecom giant AT&T in 1984 (which eventually meant huge rewards for the investors in both of the upstart long-distance providers), it appears Phinder is in its own right place and right time. We think the 'right time' is 2007, and the 'right place' is the red-hot Latin American telecom market.  We suspect you'll want to get in on the action by scooping up some shares today before the rest of the market uncovers this fast-growing venture.   Three's Company Too  Though we all probably heard "two's company, three's a crowd" growing up, the popular late 70's/early 80's sit-com 'Three's Company' may have trumped the old cliché by reminding us with its theme song that "three's company too".  What in the world has that got to do with Phinder (which is pronounced 'finder', by the way)? We think if you only remember one thing about the PHDT opportunity, then you should understand the company has three ways to reward its investors. In a nutshell, Phinder Technologies Inc. is a wholesale VOIP provider of telecommunications (voice) services, specializing in international connections. For the time being, the crux of their focus is on the fast-growing Latin American market. Check out Phinder's three-legged revenue stool..... International Long-Distance Services: The most straight-forward profit center, Phinder - operating under the name 'Zupintra' - originates international connections for the major carrier's customers.  'Local' Phone Company Licensing: Quite literally, Zupintra can set up shop overseas and become the infrastructure for other carriers within that country or region. The license would include things like calling cards, IPTV, cell phone service, etc.  Retail Products (Primarily Pre-Paid Calling Cards): This is a hot business everywhere, but it's particularly lucrative in Latin American markets where phones are relatively scarce, and a calling card may be the only viable option. Nice, but connect the dots with us here.....the better one leg does, the better another is likely to do. Phinder has a presence in the 'originating' market by providing the communication service in the first place - a service which of course collects a portion of the per-minute usage charges. The 'local' phone companies Phinder intends to build in Latin American markets will serve as a connection 'termination'. The termination carrier also receives a portion of the per-minute long-distance charge, not to mention the fees it will be able to collect by acting as an intra-network carrier.  Oh - and as it just so happens, through its Zupintra subsidiary, Phinder can provide its customers with pre-paid calling cards to use those same origination and termination lines, again collecting (or should we say keeping?) a piece of the per-minute charge.  In a word, cha-ching! Phinder can literally be the front-end, the back-end, and the middle-man as well, providing multiple ways to reap rewards for its stockholders.  Needless to say, when we started studying the Phinder profit machine in that light, we were hooked on the idea of PHDT being a brilliant investment. Then - as if that weren't enough - we started looking at the company's historical growth patterns. Wow! Read on.    Growth with a Capital 'G'  So, what do we think PHDT shares could be worth in the foreseeable future? Like we said above, the company may be on the verge unprecedented growth rates, which makes it tough to compare apples to apples. However, our digging did turn up some very impressive data.  The company-wide growth trend has been very positive. They pulled in $8.2 million (Canadian) through the first nine months of last fiscal year (their full fiscal year ended on 3/31), versus just $2.9 million for the same period a year earlier. Better still, in Q3 alone (which ended on 12/31), Phinder raked in $3.2 million, topping the previous Q3's total of $1.7 million. And that $3.2 million from last quarter? It almost rivals the prior fiscal year's $5 million in total revenue. The point is, Phinder has more than proven to us they know how to grow a business. Now, fast forward to today. Sensing where the major opportunity is for future growth, Phinder has turned its focus solely on the telecom side of their business. And if you thought their history was impressive, wait until you get a load of the potential they see in store now that the Latin American business potential has been fully sized up.  So what kind of dollars might be in store? We'll answer the question, but we also want to preface it with this....the telecom enterprise is still very young, meaning there's phenomenal room for growth - of the 'explosive' variety like we mentioned earlier.  Though it's only our estimate for now, we wouldn't be surprised to see the telecom venture soon generating about $30 million in revenue per year. That would mean roughly $2.5 million per month. Sound crazy? Maybe a little at first, but the thing to keep in mind is simply that all the pieces are really just now falling into place. Plus, we can't stress enough how big we think the opportunity in Latin American could be. We have to believe the best is yet to come, especially in light of Phinder's penchant for incredible growth.    Throwing Your Hat In The Ring Based on what we've seen so far, we wouldn't be surprised to see a quadruple in the stock's current level of 25 cents. So, our suggested target is going to start out at $1.25....a 400% gain from where we are now. Let's go with a suggested stop of 14 cents, just a hair under last month's low.  Where'd we get $1.25 cents? Though the company doesn't release revenue forecasts, here's a model we think could help provide some perspective on how we view stock's upside potential....  With about 70 million issued and outstanding shares, the market cap is around $17.7 million when shares are trading at 25 cents - as they are right now. That hypothetical revenue of roughly $30 million (or so) we discussed above loosely translates into about 42 cents worth of revenue per share, and a price-to-sales ratio of about 0.6 (six tenths).  The thing is, a price/sales ratio of 3.0 (or even more) is closer to the 'norm'. See how the math is working? A more typical price/sales ratio of 3.0 for Phinder - based on our own guess-timate - would mean a share price closer to five times the current level...or about $1.25.  Perhaps even more telling is the recent high-volume surge to the 25 cent level. In fact, the prior three days' worth of volume is the strongest accumulation we've seen in over a year. When we see this kind of sudden interest, we have to think other investors are finally starting to see the positives we already see. And as you may well know, often when demand is sparked, a snowball effect could create a massive rally. The question is, would you rather be early or late to any party?  As always though, we don't think it pays to get too bogged down in the math or by the chart. The point we're trying to make is simply how we feel PHDT are currently undervalued relative to the kind of potential the company is facing, while the chart looks like it's ready pop. In our opinion, Phinder's potential upside compared to any downside easily makes it worth becoming an owner today.      We Value Your Feedback   Got comments, questions or suggestions? 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For web based email addresses, the Small Cap Network 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 Small Cap Network Newsletter, simply follow the instructions located at the bottom of every Small Cap Network Newsletter Edition. Unsubscribe Here D I S C L A I M E R: The Small Cap Network, its website and email newsletter (hereafter, cumulatively referred to as "SCN") , is an independent electronic publication committed to providing its readers with factual information on select publicly traded companies. SCN is owned and operated by TGR Group, LLC ("TGR"). 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.  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. In addition, TGR Group LLC was also awarded 272,000 warrants with an exercise price of $.26 by Trilogy Capital Partners for coverage of MIV Therapeutics. All of the aforementioned warrants have been exercised and shares have been sold in the open market. On April 3rd of 2007, MIV Therapeutics renewed coverage and paid TGR Group, LLC $30,000 in cash and 100,000 warrants, convertible into restricted shares at $.50. In addition, TGR Group has been awarded 190,000 warrants, convertible at $.50 into free trading shares, by Trilogy Capital Partners for coverage of the company.  TGR Group, LLC has been paid a fee of $30,000 cash and 1,000,000 shares of newly issued restricted stock by Phinder Technologies, Inc. for coverage of the Company.  From time to time TGR sells shares received as compensation for coverage of client companies. Shares received are sold in the open market. 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