Dow Jones 11019.11 0.00 6:30 am PDT, June 23, 2006 NASDAQ 2122.98 0.00 For info, visit access.smallcapnetwork.com S & P 500 1245.60 0.00 Change your subscription status here Russell 2000 688.04 0.00 VOLUME 06: ISSUE 47 Timeless Lessons Lately we've been focusing on our watchlist stocks with major news to discuss, but with nothing hard-hitting to look at today, we'll devote some attention to a couple of names we haven't looked at recently. This includes a detailed look at charts. Along the way, we're going to use our real-life examples to illustrate key lessons that investors should remember for any stock trade. Plus, this look will get any new readers up to speed on at least two of the companies we're covering.   Novelos Therapeutics Want proof that lightning can strike anywhere, anytime? Novelos Therapeutics (OTCBB: NVLT) had been walking lower since March, but over the last three sessions, the stock did an about-face. The close at $0.93 cents last week was just a fraction above its low for the year (which by the way was $0.85, reached just last Thursday). Yesterday, the stock closed at $1.11, or 19% better than last week's close. A serious resistance line was broken in the process too, so we at least have to acknowledge there's a potential breakout in the works. The big gain, however, isn't even the exciting part. What we like even more (and any shareholder should) is the major volume behind yesterday's $0.11 gain. It was the highest volume ever seen for this issue...and it was bullish. It's still not clear whom it was buying all those shares. It could have been an insider, or possibly a fund or pension. Either way, it's a professional endorsement of the company. Those are leads usually worth following, especially in the early stages of the breakout before the accumulation is complete. For an example of how bullish volume can precede a nice upside move, just look at a recent Commerce Planet (OTCBB: CPNE) chart by clicking here. The high volume surges got bigger and bigger, as the stock went higher and higher. There's a good chance the same is happening with Novelos now.  So what news prompted the recent move? Well, none. That's another bullish point. If it was a news-driven rally, we might hesitate to even respond to it, since those moves can be short-lived (as you'll see with Biocurex below). In this case though, there is no news - at least none yet. This stock is going higher on its own merit instead of on hype. Given the choice, it's best if a company's stock can move higher without the help of the media or public relations efforts. Generally, news doesn't keep investors interested long enough to keep a stock pointed upward.   Biocurex Biocurex (BOCX.PK) hasn't had any news in a long time. That may be the challenge for the stock. After surging from a close of $0.81 on April 11th to the April 12th close of $1.09, it looked like a paradigm shift for shareholders - multi-month highs were hit, and the volume behind the move was huge. Since then, however, the stock has eased back from the April 12th high of $1.34. Yesterday's closing price was $0.79.That's not too easy to swallow as a shareholder, but a little perspective may help.  Let's be honest...the 34% gain on April 12th was nice, but maybe a little much. The stock went from being stuck in a range to being launched like a rocket. The news certainly merited interest in the company - Biocurex announced success with a breast cancer detection test that day. On a personal level, we're thrilled with progress in that important arena. And as investors, we'd be crazy to ignore a company doing that kind of research with any amount of success. But as traders, we have to recognize instances of when the market over-reacted. April 12th may have been one of those times. In a rush to 'get in now', investors didn't really have time to think it over, or examine the details of the cancer detection test. Expectations of the company were obviously high at the time, but the jump in the stock price reflected more hope than any company could feasibly satisfy. When the dust started to settle, the stock lost some luster. It happens.  Now, we said all that, so we could day this...trading is one thing, and investing is another. However, there's nothing wrong with being both. We are. In fact, it can make sense to be both. Biocurex is an example of that. The April 12th move made for a great trade. We expressed our interest in Biocurex a few days before the big rally, not knowing what was about to happen. Our interest at the time was in the investment opportunity. But after April 12th, we couldn't blame anyone for becoming a trader, and locking in some profits. In fact, it looks like most people did. Thus, the stock slipped back to the same levels we saw before the surge. Quite frankly, we're not surprised. Between the big bullish gap (which the market hates), and the big one-day gain staring shareholders in the face, it was going to be tough for the stock to follow through to the upside. It's probably not exactly what the company wanted, but it's just one of the distinct realities for pink sheet stocks. Well, as of Tuesday, the trading mode has come to an end. The recent lows of $0.79 have fully closed the bullish gap from April, and we're back to the trading range we were in for the latter part of last year. So, without the worry of what the stock might or might not do next, we can now re-focus on Biocurex as in investment.  So what is the investment potential here? The fact of the matter is Biocurex is still an amazing company doing some amazing research. The breast cancer test obviously has promise, yet it's only a part of what the company is doing with cancer detection.  Of course as stock investors, you only make money if shares go higher. Can BOCX do that? You bet. But as we mentioned early on, there's been a lack of news for Biocurex, so there's been no renewed interest in the stock. That's ok though, as that can change without warning. It may be tomorrow, or it may be two months from now. Being patient is just one of the keys with speculative investments. Perhaps the next bit of news will be like the last bit, and create a big surge that ends up putting BOCX shares into a trading mode, which traders love. Maybe it will start a slow and well-paced bullish move, which investors love, since they're easier to sustain. As of right now, it's still on our coverage list, so we obviously think it has potential. But as far as what kind of potential is yet to be determined.  The point is this...small cap investing is an art, and a science. The charts don't always work how we'd like them to, but that's entirely out of your control. What is in your control is what you do under a certain set of circumstances. Sometimes the wise choice is to be a scientist, and sometime the wise choice is to be an artist. We applaud investors and traders who can stick to their chosen methodology. However, the most successful (i.e. profitable) market participants are the ones who can successfully implement the best parts of both methodologies, when the time is right.   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 New Name For NeWave The name change for NeWave is now complete. As of today, the company will be called 'Commerce Planet', with a new stock ticker symbol 'CPNE'. The updated stock ticker is already trading over-the-counter as a bulletin board stock should, but don't be surprised to see a transitional period for some data providers. For instance, Yahoo is listing the correct symbol, but the wrong company name. Some stock quote providers are still listing Capital One Inc. as the company name for 'CPNE'. All of those errors will be corrected soon; we just wanted you to know in case you saw something unusual in the meantime (or couldn't get a quote) for the company formerly known as NeWave.  CEO Michael Hill commented the new name 'Commerce Planet' (OTCBB:CPNE) is more descriptive of what the company does. He also added (and this is the exciting part for us) the revised moniker will be better suited for the new growth initiatives to be added in the latter half of this year. Based on his track record so far, we think it's going to be something really exciting.  As for the shares, it's business as usual. Each wave of selling is quickly met with an even stronger wave of buying, pushing the stock to new highs. So, not only has the ebb and flow become predictable, it's also made for a pretty nice uptrend since mid-March when we first started covering the company. At the time, shares were priced at $0.19. The current reading of $0.52 translates into a 173% gain, with more likely on the way (see chart here). 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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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 $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.  TGR Group LLC has been 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 are now eligible for sale into the public market. TGR Group has submitted the appropriate filings to sell the shares. In addition, on March 22, 2005, TGR entered into an extended agreement with Biocurex for a fee of 25,000 newly issued restricted shares. TGR Group LLC has been paid a fee of $60,000 by Commerce Planet for coverage of the company. In addition, one of the principles of TGR Group LLC is also a principle of MarketByte LLC. In a separate contractual relationship in 2004, MarketByte LLC was paid a fee of $25,000 in cash and 750,000 newly issued, restricted shares by Commerce Planet for coverage of the company. The aforementioned shares are all currently eligible to be free trading. The term of MarketByte's obligation to Commerce Planet has expired. 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. 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