Dow Jones 10972.28 -33.46 2:02 pm PST, March 9, 2006  NASDAQ 2249.72 -17.74 For info, visit access.smallcapnetwork.com S & P 500 1272.23 -6.24 Change your subscription status here Russell 2000 718.28 -3.56 VOLUME 06: ISSUE 20  Stem Cell Stocks - Early Is Always Better. Investors can take this to the bank: the promise and efficacy of stem cell therapies will ultimately trump the politics. The medical potential is simply too great to ease suffering, salvage patient lives and save the healthcare industry a massive slug of money. Not to mention throwing off some great investment opportunities. Over 70 companies --the vast majority of them small or microcaps-- are doing some amazing work on stem cell therapies. We have recently unearthed a great smallcap biotech company that deals directly in this realm and plan to bring it to you in the next week or two. In the interim, it would be to your benefit to get to know the ins and outs of the stem cell landscape Here's a link to several other stem cell companies worldwide. http://www.stem-cell-companies.com/. Be advised, many are in their formative stages. Careful review is warranted. As in every new sector, not all will prosper or even survive. Profits soon. Well, pretty soon. Revenues from current stem cell initiatives should begin to bite in a meaningful way by 2009, exploding to almost $4 billion-plus by 2015. Beyond that, the sky is likely the limit. Investors who see the potential, now, will likely garner the best returns as the scenario unfolds. Nearly $15 billion will be spent over the next decade on both embryonic and adult stem cell research/therapies. States, such as California, recently passed a contentious initiative (Proposition 71), which earmarks $3 billion --by way a pending bond issue-- over the next ten years for stem cell research. Other states are looking at California's lead to acquire stem cell funding in an effort to make up the R&D shortfall that has resulted from limited federal participation.  The companies that currently, and arguably, dominate the space are; Geron Corp (NASDAQ: GERN), StemCells (NASDAQ: STEM) as well as private biotechs ES Cell International, and NovoCell. Although revenues are, in most cases spotty, even scarce, savvy investors are already establishing a long-term beachhead by accumulating select names now. While there are currently limited ways to get stem cell investment exposure, a practical way to play a stock like Geron as well as many other of the most cutting edge biotechs is through the State Street SPDR Biotech (AMEX: XBI) ETF. Although it only recently began trading, the names and approach appear unique from the standard biotech ETF. Here's the tear sheet: http://advisors.ssga.com/fund_doc/fund_doc_20060207_092228/spdrbiotech.pdf and the chart: While there is too little history to give a focused technical assessment, the trade volumes have been increasing nicely. There was an initial 3/8's pullback that cleaned out some weak hands and the XBI looks to want to move higher. All in all looks to be a decent vehicle to get pure biotech industry exposure, especially in some great smallcap names. On the threshold of greatness. And profits. We believe that investors are on the threshold of a whole new and extremely exciting genus of therapies. While acknowledging the controversy around this sector, the over-riding fact is that the formative science is just too compelling to ignore both for healthcare and especially those patients suffering debilitating disease.  Is it too early to consider stem cell investing? Would it have been too early to buy Microsoft years ago or to be an early investor with a young(er) Warren Buffett? That's the type of long-term trend we believe is in the early process of unfolding for stem cell companies. For those investors who have the patience and risk tolerance, there will be some very exciting names coming forward, including those that we will illuminate for readers. The Two Types of Stem Cells. Stem cells differ from other kinds of cells in the body. All stem cells--regardless of their source--have three general properties: they are capable of dividing and renewing themselves for long periods; they are unspecialized; and they can give rise to specialized cell types. Adult stem cells are thought to reside in a specific area of each tissue where they may remain quiescent (non-dividing) for many years until they are activated by disease or tissue injury. The adult tissues reported to contain stem cells include brain, bone marrow, peripheral blood, blood vessels, skeletal muscle, skin and liver. Globally, scientists are trying to find ways to grow adult stem cells in cell cultures and manipulate them to generate specific cell types so they can be used to treat injury or disease. Some examples of potential treatments include replacing the dopamine-producing cells in the brains of Parkinson's patients, developing insulin-producing cells for type I diabetes and repairing damaged heart muscle following a heart attack with cardiac muscle cells. Embryonic stem cells as their name suggests, are derived from embryos after about five days. Specifically, these stem cells are derived from embryos that develop from eggs that have been fertilized in vitro --in an in-vitro fertilization clinic--and then donated for research purposes with the informed consent of the donors. The differences. Human embryonic and adult stem cells each have advantages and disadvantages regarding potential use for cell-based regenerative therapies. Of course, adult and embryonic stem cells differ in the number and type of differentiated cells types they can become. Embryonic stem cells can become all cell types of the body because they are pluripotent. Adult stem cells are generally limited to differentiating into different cell types of their tissue of origin. As well as being a medium through which scientists can further understand how basic cell development occurs, stem cells could be used to test new drugs and to augment the replacement of transplanted tissues and organs, which are in very short supply. Most importantly stem cells, directed to differentiate into specific cell types, offer the possibility of a renewable source of replacement cells and tissues to treat diseases including Parkinson's and Alzheimer's diseases, spinal cord injury, stroke, burns, heart disease, diabetes, osteoarthritis, and rheumatoid arthritis. I could write a whole article detailing the myriad types of potential stem cell therapies, as well as the rise in newborn cord blood collection by parents, and the almost weekly reports of promising stem cell R&D. The bottomline? Getting early exposure to the companies and the sector makes sense. Thankfully, nothing will keep this therapeutic tide from rising, and quickly. We'll be back with names. Until then, consider the XBI ETF.      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 AT&T Rings Back Lots of varied speculation over the AT&T purchase of Bell South. Stock took a bit of a hit, but cooler heads prevailing. Part of the deal is the rest (40 percent) of the largest wireless player Cingular Wireless. We like wireless. We like AT&T and Verizon. Being the big kahunas surfing the wireless wave, decent divvies and a growing market, what's not to like? Hope you grabbed some stock or options on the pullback.   Oh, Canada. This story is interesting and should be a wakeup call to wi-fi companies. Staid anmd boring utility Toronto Hydro is installing wi-fi equipment on hydro poles and traffic lights turning that whole city into a giant hotspot. That means you can access the internet and email in a taxi, streetcar, bus or even on the beach. Yes, Toronto has a beach--Lake Ontario. No more searching for a coffee shop hotspot or not being in touch if your job takes you all over all day. Cool. And the system will all in place by the end of 2006. Surfers will connect to the internet via Toronto Hydro's own network. Imagine Rogers, Telus and Bell Canada are less than amused. Whatever. Should be a good earner for Toronto Hydro, which plans to charge for access after a six-month free trial. 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. 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