Dow Jones 0.00 +0.00 9:13 am PST, February 3, 2007 NASDAQ 2475.88 +7.50 For info, visit access.smallcapnetwork.com S & P 500 0.00 +0.00 Change your subscription status here Russell 2000 809.42 +1.65 VOLUME 07: ISSUE 14 Web2Corp - Undervalued in Our Eyes  Sometime stocks trade at what they're worth, and sometimes not. We know there's nothing earth-shattering there, but it's a seed we wanted to plant early today. Why? Because we feel being able to distinguish between the two scenarios is where top traders make the majority of their money. Even better, we think we've spotted a scenario where a stock has been pulled down to well-undervalued levels. We can already see what we think are hints of a rebound, so if you like high-potential trading opportunities, then you'll definitely want to keep reading.  Plain and simple, in our view, Web2 Corporation's (OTCBB: WBTO) shares are currently below where we think they should be. Even better, we think they've got a very good shot at working their way back up (soon) to trading levels commensurate with the stock's actual risk-adjusted value. Better still....we've got a handful of ideas we suspect you'll agree are consistent with our positive opinion.  But first, to set the stage....  The technical-versus-fundamental war has been waged for years; we're not going to resolve it today. We are, however, going to make the best of both philosophies. WBTO's chart may have just presented an ideal time to become an owner. However, we think the company's underlying story is just as compelling.    WBTO's Chart: The Tale of the Technicals We have little doubt this stock has enormous upside potential - we've seen it before. Between December 1st and December 15th shares rallied from $1.17 to $2.43, rewarding shareholders by more than doubling in two weeks. Since then we've seen WBTO work its way back to the $1.60 area, but in so doing, we think some of the important pieces of the chart's puzzle have been laid into place.  There are two key technical (chart-based) reasons we like WBTO shares right now.....  First, the lingering gap has been closed. On December 7th, in the midst of the major surge, shares jumped from a high of $1.61 a day earlier, and only saw a low of $1.72 that day. Despite continuing higher, regular readers will know gaps such as that one concern us....the market doesn't like them, and will frequently fill them. The good news since then? We don't have to worry anymore - the gap was filled several days ago. Though shares had to fall a little to close the void, in many senses, we think it may have been a blessing in disguise. How so? We'd say it's better to fill it now with a small dip than to fill it later with a bigger one. Now free and clear of that particular worry, traders can get back to any bullish WBTO business they may want to take care of.  Second reason - the slide all the way back to the January low of $1.42 almost represents a perfect 61.8% Fibonacci retracement from the recent peak of $2.47. But here's the more key part we see...it looks like there was a pretty solid upside effort in place after finding a little support around that Fibonacci line at $1.50. Yeah, the buyers tapered off a bit the last couple of days, but we think the important legwork (the support at the Fib retracement line) has already been done.  Something else we found encouraging is what we didn't see. Though the stock has pulled back from $2.47 to the current $1.60 area, we've not seen any strong volume behind the selling. So, it's not as if the big players who may own shares are evacuating a burning building. On the contrary...we've seen the volume behind the pullback start small, and get even smaller. Point being, we doubt the recent move reflects the majority opinion.  More than anything, we attribute the dip to one idea...a well-deserved break. After running from $1.17 on December 1st to December 15th's close of $2.43 (a 107.7% gain), we'd say the stock had earned a breather. Could break-time be over, and are the buyers ready to get back to work? We think so.  If you're like us and think timing is half the battle in this business, then we have to think now could be a great time to jump in.    Web2 Corporation: Poised for Growth While the timing may be technical, our inspiration is still ultimately rooted in one key premise - we think Web2 Corporation has tremendous growth potential. After all, there eventually has to be some sort of basis behind the demand (or lack thereof) for a particular stock, right?  Though not a 'new' company in a technical sense, the key enterprises like ByIndia.com. Chamber of E-Commerce, and JobMatchPro just to name a few, were all launched within the last several weeks. Just look at the sites and initiatives undertaken recently. Most of them weren't around at all in 2006, and if they were, they were only launched late in the year. So, there's effectively been no way to drive any real revenue...until now. We feel this is the key to the WBTO opportunity - the likely difference between last year's results and this year's results.    8/07/06 - Chamber of E-Commerce is launched  12/4/06 - ByIndia.com is ranked #1 in growth among Indian search engines  1/5/07 - AdAgencyPro.com is launched  1/8/07 - Web2 Corp. eliminated its preferred stock and reduced debt by $400K  1/10/07 - ByIndia.com's web traffic is now twice that of any other Indian search site  1/12/07 - TemplateSuperStore.com launched  1/22/07 - JobMatchPro.com launched  1/29/07 - ByIndia.com's $5 million sweepstakes began  After scouring through those last few weeks worth of news, we've become convinced of three key things about Web2 Corporation.....(1) they know the shape of things to come for the Internet, which is Web 2.0 (2) they know how to attract web traffic, and (3) they know how to monetize a web site.  Ergo, we feel WBTO shares are undervalued. We just don't think the rest of the marketplace has been keeping the same close tabs we have, which is why a few folks got out in January. In our eyes, they may have made a mistake....we suspect WBTO has a ton of upside potential left to tap. Why? Just look back up at the charts - somebody obviously liked this stock in early December when the stellar traffic reports came out on the newly-launched ByIndia.com. Is it possible we could see another news-based doubler like that one? We don't see any reason why not - Web2 certainly has enough news to talk about.  Bottom line....we think this is a second chance to own shares at what's still a relatively low entry level. No, it's not 90 cents like we saw in November, but it sure beats the heck out of $2.47 like we saw in December. Between the chart and the way Web2 is putting its properties together, we think the current $1.60 level is still a pretty low level when we weigh the potential risk against the possibly enormous reward.    And now for something completely different...  Prediction: Bears 37, Colts 27. While it's a myth Indianapolis can't stop the run, I just don't think they'll be able to stop Thomas Jones and the rest of the potentially-explosive Bears offense. If Chicago is 'on' like I think they'll be, I believe their relative naivety could keep them playing smart - and well - on Sunday evening. Of course, the Colts will be ready as always, under Dungy's and Manning's leadership....two of the coolest cats in the NFL. They've both been in the spotlight enough to not worry about being in it again. But, at the end of the day, I just think the Bears are really hungry for it. Strictly a hunch. Of course, in many ways I hope I'm wrong. Nobody deserves a Super Bowl ring more than Peyton Manning. By the way everybody, if you have topics or ideas for future newsletter editions, please send them in. Tells us what you like or don't like. This is your newsletter, and while we intend to keep bringing you great small cap trading ideas, we want you to participate in the community as well. Any ideas or feedback can be sent using the link below, or you can post a message on the blog. We try to respond to all comments and questions.     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 If You're Not Reading Our Blog.... .....then you're missing some of our best stuff. Remember, not everything we think makes it to the newsletter. If you want every morsel of opinion, you've got to visit the blog daily.  Plus, it's a chance for you to respond to our opinion....or ask a question...or add one of your own. Get involved.    Hear the Latest on BioCurex Through MoneyTV If you're looking for the latest on the progress of BioCurex's (OTCBB: BOCX) RECAF cancer marker, take the easy route......sit back and watch it on television (or even through the Internet). Gerry Wittenberg, Chairman, will be discussing recent news on RECAF's development with MoneyTV's host Donald A. Baillargeon. The nice part is it's a pretty detailed review, and comes straight from the top.  This episode will be available for a few days if you'd like to watch on the air. Or, if it's more convenient, you can watch the show online. Links to air times as well as the web-based version can be found here at the MoneyTV.net site.    Titan's PCB Spin-Off Conference Call Transcript Now Available If you weren't able to join in on Titan Global Holding's (OTCBB: TTGL) conference call on Tuesday, you can still get the whole scoop through the transcript - now available by clicking here (Adobe PDF required). The crux of the call was going to focus on the likely spin-off of Titan's two printed circuit board (PCB) divisions.  An audio replay along with some other impressive multimedia information about Titan are available here. A name and e-mail address may be required, but they're not used for any promotional purpose.    Reader Question About Stockgroup's Debt Situation We recently got this question regarding Stockgroup's (OTCBB: SWEB) debt situation. This is one of those nuggets we think everybody should be aware of, so, here it is in the blog.  Q: I was an owner of this company way back in the good old tech bubble days and haven't paid much attention to it since other than using their bullboards. What I remember from the past was a debt problem. Is this still an issue?  To answer the question, no, the debt is no longer an issue. In fact, the company has no debt at all.    Are CEL-SCI Shares Gearing Up? After announcing the news on January 16th the FDA had given the CEL-SCI Corporation (AMEX: CVM) the green light for phase III trials of Multikine, the stock - as we expected - went ballistic. And as we also expected, CVM shares pulled back a bit after the initial runup. Now being past all the emotionally-based volatility, and in calm waters, reading the chart is a little more meaningful to us.  And what do we see now? The stock is above the surge high from the same day the announcement was made. Only this time, the trip up to those levels seems well-paced, and well thought out....the kind of trend we like to see. It possibly indicates the 'smart money' is getting in. Better yet, the volume behind the upward move is growing.  As we said on the 16th, we think CVM shares are worth owning if you don't already.    Reader Submitted Idea - N-Viro In an ongoing effort to make our site a true 'network', we temporarily opened the window for readers to submit their own trading ideas. Though it has only been an experiment so far, we've found a handful of interesting stocks to consider.  N-Viro International Corporation (OTCBB: NVIC) was mentioned to us several days ago. The company hauls away sludge for a fee, then turns that same waste into alternative fuel used in power plants...and collects a fee for providing it. Our understanding is that the sludge waste/coal mix creates more energy (heat) than coal would alone. Two birds - one stone. Not bad. Along with the sheer attraction of being providing a clean 'alternative fuel', the company also enjoys those alternative fuel tax credits. And you don't need us to tell you the White House is clamoring for alternative fuel technology.  For more thoughts on N-Viro, be sure to click here and review the rest of the blog entry.  If you've got a legitimate small cap trading idea, let us know. Please give us a little background and justification - we may do a little legwork of our own as well. Maybe your idea will be the next one we mention here. You can contact us with the info at the bottom of this newsletter.  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. Receiving the Small Cap Network 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 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"). 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 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.  January 19th, 2007 TGR Group LLC entered into an agreement with Stock Group Media, Inc. (a wholly-owned subsidiary of Stock Group Information Systems, Inc.) whereby Stock Group Media, Inc. will provide $50,000 worth of advertising and marketing services to TGR Group, LLC in exchange for coverage of Stock Group Information Systems, Inc. on the Small Cap Network web site and newsletter. TGR Group LLC has been paid a fee of $30,000 cash by Titan General for coverage of the company. In addition, TGR Group LLC has been pledged a fee of 100,000 warrants convertible at $1 into restricted shares by Trilogy Capital for coverage of the company.  TGR Group, LLC has been paid a fee of $25,000 cash and 75,000 shares of newly issued restricted stock by Web2 Corp. for coverage of the Company. TGR Group LLC has been paid a fee of $25,000 and 150,000 shares of newly issued restricted stock by Cel-Sci for coverage of the Company. Additionally, back in November of 2002, TGR Group LLC was paid a fee of $25,000 and 250,000 shares of newly issued restricted stock of Cel-Sci for coverage of the company until November of 2003. The aforementioned 250,000 restricted shares became free trading under SEC rule 144 and were sold in the open market prior to the company entering into a new contract agreement with TGR Group in February of 2006. In October of 2003, TGR Group LLC was paid a fee of $25,000 and one million newly issued restricted shares by Biocurex for coverage of the Company. Under SEC Rule 144, all one million issued restricted shares have been eligible for sale into the public market since October of 2004. In addition, on March 22, 2005, TGR entered into an extended agreement with Biocurex for a fee of 25,000 newly issued restricted shares and on July 1, 2006 TGR entered into another extended agreement with Biocurex for an additional 100,000 shares of newly issued, restricted stock. 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 SCN 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.