Dow Jones 11094.43 -184.18 1:38 pm PDT, May 30, 2006 NASDAQ 2164.74 -45.63 For info, visit access.smallcapnetwork.com S & P 500 1259.87 -20.29 Change your subscription status here Russell 2000 711.04 -18.51 VOLUME 06: ISSUE 41 The Picture is Getting "Clearer" We featured Clearly Canadian (OTCBB: CCBEF) back in January of this year, well before it hit radar screens of the small cap investing masses. Since then, shares of Clearly Canadian have appreciated over 20%. Clearly a decent return compared to the averages, however, we're looking for bigger and better things to surface in coming months from this unique turnaround beverage story. To sit here and roll through what has been with a Company like Clearly doesn't do much for me and likely wouldn't do much for you. Although it is a fairly interesting story, the history of Clearly is not going to make us any money, but speculating (and being right) on what transpires from here is how we try and stay ahead of the pack and that's likely why you read this newsletter anyway. This morning, the Company announced the "official launch" of its reformulated sparkling flavored water product line (release below). Typically, when we see and here pr with this kind of tone, we assume a Company has put its ducks in a row and is now ready to go on a major offensive blitz. In Clearly's case, if you've been following the story, it appears the Company has successfully reorganized itself, implanted the right folks at the top level, formulated their product strategy and brought on board a well renowned marketing firm. Just maybe it's go time? As one of my funniest business associate always says, "Duh". The Trend Is Your Friend I believe one of the most successful qualities to making better than average returns in the market does not require rocket science like intelligence, it simply requires good old- fashioned common sense. The Trend is your friend. Get hold of this concept and you'll probably be way ahead of the rest. Just like it's much easier to swim down stream (I have no idea why salmon make it so tough on themselves) or to fly with the wind at your back, it's much easier to make money in the market if you simply just go with the trend. Identifying trends early and going with them is a skill many of Wall Street's greatest are so quick to shrug off. Why? Because that would be too easy. The Street likes to make things sound overly sophisticated, and difficult to understand, hence the old saying, "If you can't dazzle them with brilliance, then baffle them with bull*#$!" In the best interest of avoiding digression, which it appears I've already embraced, Clearly Canadian seems to be making the trend their friend, in more ways than one. As today's teenagers like to call it, "old school" is back. Music, clothes and much more from the 80's and 90's is making a rapid resurgence, so what better than for Clearly to re-launch their "old school" product line from the same time period, Clearly Canadian sparkling flavored waters, f eaturing eye-catching graphics reminiscent of the product's true heritage. Included will be two new zero calorie flavors, which once again meets another ongoing trend demand, that of low calorie beverages. With various "water" type beverages rapidly becoming the beverage of choice in America , we believe Clearly has clearly identified the trends and is going with them. Sounds like a winner. Beverage Seal of Approval Further confirming our belief that Clearly is on track with its vision and strategy, the Company's relaunched product line was recently the subject of review by BevNET.com, an internationally recognized resource for beverage industry professionals and consumers. Results predict the Company's product line to be nothing short of a hit. BevNET is quoted as saying, " Oh, how this brings back memories. One of our favorite flavors of Clearly's original lineup, the 2006 rendition does not disappoint. Using cane sugar, a beautiful glass bottle, and a great tasting blackberry flavor, Clearly Canadian has created something that is a hybrid of super premium CSD and new age. Technically, very well done... the question is, does this product have a place in the market? We think so, and we believe that consumers who are seeking a super premium alternative to mainstream CSDs will agree." Seems we're not the only ones in favor of Clearly's new product plans.  Whether shares of Clearly can inevitably trade back to its all-time high of over $250 a share back in October of 1991, who knows, but I think it's safe to assume we're in the early stages of the game on Clearly, so we're extremely optimistic as to what may be in store for Clearly shareholders in the months ahead. Clear Sailing?  No such thing in the market. But if shares of Clearly can do half of what shares of Hansen's (NASDAQ: HANS) have done in the last few years, then we're all going to look like geniuses, right? What is so interesting about the Hansen's story is their product was on the shelf years before the stock decided to go nuts. Prior to the tremendous stock performance, most of us could find numerous cans of Hansen's buried deep in the ice chests at those hot summer Fourth of July parties. And, most all of us enjoyed the soda then, just as much as we do now. Lesson? Go out to your favorite grocer and buy some Clearly Canadian. You be the judge. If you love it, then I suggest you buy the stock and sit on it. Technically, CCBEF shares hit a new 52-week high this morning of $2.88 on decent volume. A clear break above the $2.87 level could send this stock on a whole new leg up, which we previously pegged at $3.30 before running into any potential resistance. After a nice April to mid May move, the stock backed off, thus presenting an excellent entry for those who were looking to capitalize on the next move up. So for the short-term traders, we like the prospects of CCBEF, as the stock continues to inch its way up the charts. Entering on pullbacks and selling into the rallies appears to be a theme that's working right now. Stocks rarely go up in a straight line anyway, so a little patience always goes a long way.  On a long-term basis, we ultimately would consider CCBEF a huge winner if it can trade to the 5/8-retreacement levels of the '02 - '05 sell off shown in this weekly chart, which would be in the neighborhood of $6.26 a share. For investors, I believe it's ludicrous to try and pinpoint perfect entry points. If you like the story, and you like the prospects of a Company's product, you simply consider how much you want to allocate toward a position in the stock and do it.   CLEARLY CANADIAN ANNOUNCES LAUNCH OF ITS REFORMULATED SPARKLING FLAVOURED WATERS; NEW PRODUCT LINE-UP RECEIVES RAVE REVIEWS FROM INDUSTRY EXPERTS, INITIATES RETURN TO HERITAGE OF EXTREMELY POPULAR BRAND Tuesday May 30, 2:35 pm ET  VANCOUVER , British Columbia-- (BUSINESS WIRE)-- May 30, 2006-- Clearly Canadian Beverage Corporation, Vancouver , British Columbia (OTCBB:CCBEF - News) is pleased to announce the launch of reformulated Clearly Canadian(R) sparkling flavoured water. The new line-up is delivered in a clear, maple leaf embossed bottle; features original, all natural, no preservative flavour formulas (offered in Cherry, Blackberry, Raspberry and Strawberry); a new zero calorie flavour formula (offered in Pink Grapefruit and Blueberry); and updated label graphics reminiscent of the product's true heritage (which has sold over 2 billion bottles).  Stated Brent Lokash, President of Clearly Canadian, "Consumers have overwhelmingly missed the original flavour formulas and familiar packaging, which propelled this brand to the forefront of the alternative beverage category. In fact, the industry has already recognized the strong appeal of Clearly Canadian returning to its roots."  BevNET.com, an internationally recognized resource for beverage industry professionals and consumers, has given an extremely positive review of the new sparkling flavoured waters. On the original flavour formulas, BevNet.com says, "Oh, how this brings back memories...", and on the zero calorie formulas, proclaims, "...the effervescent formulation (zero calorie) is among the best of what we've seen in the diet category." Recognizing the product's place in the market, BevNet.com asserts, "...we think Clearly Canadian has a real opportunity with its revamped line-up...without a doubt the most appealing and timely Clearly Canadian line-up yet."  "We are excited about the relaunch of Clearly Canadian's sparkling flavoured waters and the reviews the product is receiving," noted Sonia Manson, Marketing Manager for Clearly Canadian. "We look forward to delivering our new product to consumers through our current distribution network and through new sales channels which we expect to open as a result of this relaunch."  About Clearly Canadian  Based in Vancouver , B.C., Clearly Canadian Beverage Corporation markets premium alternative beverages and products, including Clearly Canadian(R) sparkling flavoured water and Clearly Canadian O+2(R) oxygen enhanced water beverage which are distributed in the United States , Canada and various other countries. Since its inception, the Clearly Canadian brand has sold over 90 million cases equating to over 2 billion bottles worldwide. Additional information about Clearly Canadian may be obtained at http://www.clearly.ca.  CLEARLY CANADIAN BEVERAGE CORPORATION Brent Lokash, President  Forward Looking Statements  Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties. Words such as "expects", "intends", "plans", "may", "could", "should", "anticipates", "likely", "believes", "estimates", "potential", "predicts", "continue" and words of similar import also identify forward-looking statements. Forward-looking statements are based on current facts and analysis and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management, including, but not limited to, the Company's or other's belief that its new sparkling flavoured water lineup has an opportunity to succeed in the marketplace and open up new sales and distribution channels. These assumptions are subject to many risks, and actual results may differ materially from those currently anticipated. These risks include, by way of example and not in limitation, general economic conditions, changing beverage consumption trends of consumers, the Company's ability to generate sufficient cash flows to support general operating activities and capital expansion plans, competition, pricing and availability of raw materials, the Company's ability to maintain the current and future retail listings for its beverage products and to maintain favourable supply, production and distribution arrangements, laws and regulations and changes thereto that may affect the way the Company's products are manufactured, distributed and sold and other factors beyond the reasonable control of the Company. Additional information on factors that may affect the business and financial results of the Company can be found in filings of the Company with the U.S. Securities and Exchange Commission and with the British Columbia and Ontario Securities Commissions.  MULTIMEDIA AVAILABLE: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=5158415 For further information Clearly Canadian Beverage Corporation, Shareholder Relations: Steve Cook, 1-800-983-0993, investor@clearly.ca --------------------------------------------------------------- Source: Clearly Canadian Beverage Corporation   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 Novelos Update Novelos (OTCBB: NVLT) was in the news Tuesday morning. The Company announced that it has finalized a Special Protocol Assessment (SPA) with the Food and Drug Administration (FDA) for a single pivotal Phase 3 trial in advanced non-small cell lung cancer (NSCLC) for its lead product NOV-002 in combination with first-line chemotherapy. Click here to read the release in its entirety.  The Company, which focuses on the development of therapeutics to treat cancer and hepatitis, has been in the process of getting a Phase III clinical trial go ahead from the FDA for its leading drug candidate, NOV-002. If they can get the proverbial "nod" from the FDA, we'll likely start seeing much more volatility in the stock. Until then, it appears to be a "hurry up and wait" scenario.  Financially, the Company appears to be in great shape with a recent $15 Million financing via private placement back in March of this year. So in terms of moving forward with their clinical trial plans, funding should not be an issue. However, it appears the financing may have created some sell side pressure in the stock. Novelos issued 11.5 Million shares of common at $1.35 per share and some warrants to raise the $15 Million bucks. Not far from where it currently trades. Guess the financiers may not have been in this stock for the long-term.  Technically, it's not easy to ignore NVLT shares' negative momentum of late. Where it stops, is a whole different game in and of itself, however, traders may have an opportunity here. If you've ever heard of a "wash and rinse" move in the market, then you'll understand where I'm going with this. A wash and rinse is the result, usually consisting of a couple of days in a daily chart, whereby the market takes out all of the weak hands in a stock in one big sweeping move, closes back up where it started, then rallies ahead leaving everyone behind wondering what happened. Hence, wash and rinse.  I bring this up because in looking at this daily chart of NVLT, one can see the wash half of the equation taking place today, but it does not to necessarily suggest that this is what NVLT is going to do. The stock made a big down move this morning on good volume. In order to confirm our wash and rinse pattern, we need to see it close roughly around where it opened and get some follow through to the upside over the next couple of days. Bottom line; watch what shares of NVLT do tomorrow and the day after. That will likely tell a trader if there exists a tradable rally.  If you're a trader, keep an eye out for the "wash and rinse" pattern in any stock or market, and you may very well be identifying a great entry point.  As for investors of NVLT, we've been covering this stock for a while. At this point, investors should reevaluate their risk/reward tolerance and apply it to their own individual buying or selling strategy accordingly. If you can't stomach the risk associated with a stock like NVLT right now, then you best get out. Not every micro or small cap is going to work. Having a little left for another idea is far better than having nothing left for an idea. Profound, eh?  For the record, we still really believe in the potential product prospects Novelo's brings to the table, regardless of its share price at this point. If it weren't for that, we'd have given up on this idea a while ago because the selling pressure of late is definitely no vote of confidence.  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. 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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. TGR Group LLC has been paid a fee of $30,000 and pledged 150,000 warrants with an exercise price of $2, currently convertible into restricted shares of Clearly Canadian, by Level III Research, for its coverage of Clearly Canadian. TGR Group LLC has been paid a fee of $25,000 and 100,000 shares of newly issued restricted stock by Novelos for coverage of the Company. The aforementioned shares have become free trading under Rule 144.  From time to time TGR sells shares received as compensation for coverage of client companies. 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