Dow Jones 10356.53 +54.24 7:32 am PST, July 8, 2005  NASDAQ 2082.67 +7.01 For info, visit access.smallcapnetwork.com S & P 500 1202.23 +4.36 Change your subscription status here Russell 2000 650.25 +0.95 VOLUME 05: ISSUE 52  Feature: Eden Screams. Xtreme's Tide Ready to Rise. Although different types of companies, we feel that both of these stocks deserve your focused attention. Let's begin with a technical look at the very undervalued recreational/Homeland Security watercraft concern Xtreme (OTCBB: XTME). Following, we will have a look at the recent very compelling trading action on elephant oil explorer Eden Energy (OTCBB: EDNE). XTME made a new 52-week low Thursday, which is interesting because the theme of the markets lately has been that many stocks make new long term up moves after creating a new low. All the weak hands get cleaned out on the new low then up they go. We feel that that scenario could well play out--and soon--for Xtreme shares. Technically, XTME stock is way oversold, so we feel strongly that the risk/reward at these levels is very good. Accumulation is suggested for risk-oriented investors.  Over and above the fact that the company continues to market and sell its security/patrol boats, recreational boating season is upon us. Those sales will likely show up in the fall/winter quarters. Needless to say, investors will want to get ahead of those announcements. With the shares trading at around 15 cents, even a small flurry of news could well move the stock significantly higher. By my calculations, XTME has sold in excess of $1.5 million of Challenger boats since March/April, both to dealers and individuals. Do the math. The company's current market cap is a mere $2.5 million. While still in its formative stage, XTME has made amazing progress in the last few months; signing dealers, selling boats and securing a foreign reseller in Turkey for its security/patrol watercraft. We are confident that new dealer signups will continue as well as more boat sales--both to the recreational and Homeland Security sectors. While the stock has seemingly fallen off of investors' radar screens, we feel that this price weakness represents a significant opportunity both for a decent short-term trade as well as to begin or continue to accumulate the core of a cheap, long-term position. For a bit of fun--and significant free marketing--Xtreme's Challenger boats will be featured in an upcoming episode of TLC's 'Town Haul' in the company's hometown of Washington Missouri. The makeover show has a large following and should be a great showcase for the boats, which will be used to transport the show's crew on the river. Challenger boats also took the win at the recent Offshore Class Marathon in Florida, broadcast on FOX sports in late June. The crew has their sites set on winning the World Championships later this year. Win on Sunday; buy on Monday. Works for NASCAR... And likely for those investors who take early advantage of XTME's current oversold share price. Get some Xtreme on board. We feel that the tide will rise for this unique company--and soon.     Eden Energy: 'Oil' cylinders firing. We first Alerted the readership to the massive potential of Eden Energy (OTCBB: EDNE) on April 26th at $2.80. That piece is a good overview/background of the company and it's potential. We followed the shares down and suggested buying on dips at the $2.50-$2.55 level and subsequently at the $3 price. As well, we have frequently updated the company on the SCBLOG. Apparently we were more prescient than we knew, as the daily share volume increased dramatically doing well over a million shares in several recent sessions. The shares closed Thursday at $3.32 or a quick 18 percent return from our $2.80 price. Buying on recent dips would have nicely enhanced that return. We think that there's way more to come for Eden. The shares opened at $3.38 on Friday. EDNE chart obviously looks very good. While the stock is in uncharted waters--hitting new highs on above average volume--there are no significant signs of the shares breaking down as of yet. All of our trend indicators remain positive. We will continue to advise if the stock shows any technical signs of a reversal; the first sign of which would be big volume on down daily closes. A down tick on a volatile day with big volume may signify a short-term top. We see no apparent signs of that eventuality as yet. For risk- oriented investors, especially those familiar with this type of 'elephant-potential' exploration play, we suggest continuing to accumulate shares and buying on dips. We imagine that other finds and activity in the area will continue to impact positively on Eden's share price even prior to the beginning of the company's own drilling program slated for this fall. Eden has 211,000 acres in eastern Nevada--the largest target in the Great Basin, so far--that it has dubbed the Noah Project. It has also leased a further 50,000 acres in the Great Basin of Nevada, although the exact location has not been declared-- obviously for competitive reasons. We suspect the company may well also be looking at other strategic leasing opportunities. Given all the recent attention and rising potential for this previously ignored area, courtesy of big finds such as Wolverine Gas and Oil's in western Utah and activity by others, I have to surmise that the value of Eden's Noah Project leases acquired between August and December 2004 could well have already risen significantly. I am supposing as I don't actually know the price per acre, but given the growing attention to the area, it would simply make sense. Oil is the global currency of the moment--and likely for the foreseeable future. With the potential for Eden to find multiple billions of barrels in the Great Basin of Nevada at Noah and elsewhere, the risk/reward parameters look more and more compelling. Will the shares be volatile? Sure. As we've said, this is a standup exploration play. Does Eden represent one of if not the best exploration in the area? We're thinking yes, both for the macro economic reasons, which we have espoused frequently, as well as the rising interest, activity and potential in an area where Eden appears to have both the largest and likely the best target(s). One or both of these stocks may appeal. The linking factor is that both appear to have great potential, albeit for different reasons. A good look at each is warranted in our opinion, depending on your investment style.     We Value Your Feedback Got comments, questions or suggestions? 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