Dow Jones 12468.67 +23.15 11:17 am PST, December 18, 2006 NASDAQ 2449.17 -8.03 For info, visit access.smallcapnetwork.com S & P 500 1426.78 -0.31 Change your subscription status here Russell 2000 786.21 -6.50 VOLUME 06: ISSUE 99 Focus Edition   Company Name: Siena Technologies (OTCBB: SIEN) Coverage Initiated: April 5, 2006  Release Price: $.40 Average Volume: 24,950 52 Week Range: $.20 - $.99 Suggested Target/Stop: $.21 - $.95   Siena Technologies: Raising The Stakes  Take yourself back to April of 2000. The market was getting rocked, really for the first time in years. A few investors made a small fortune because they knew where to find the right opportunities.....the kind capable of shrugging off broad market weakness. While the S&P 500 gave up nearly 15% between its 2000 peak and where it ended the same year, the average casino and gaming stock actually gained 44.6% during that span. By the time the S&P 500 hit a bottom in October of 2002, it had pulled back by 46% from its all-time high. During that same time period, the typical casino and gaming stock appreciated by a hefty 117%.  Coincidence? We doubt it. Might instead there be a meaningful hint for investors somewhere in there? We think so.  If an industry's stocks can overcome the worst the market has to offer, then we're definitely interested in learning more about these amazingly strong companies. And as such, we're more than happy to present to you what we feel is a stock perfectly positioned to capitalize on the major growth we expect in the near future for a particular gaming segment.  We see Siena Technologies (OTCBB: SIEN) as a pioneer of what seems to be materializing as the 'next big thing' within the gaming world. Their primary subsidiary - Kelley Technologies - designs and custom-builds Race & Sports Book (horse racing and athletic events) betting systems for casinos that want to improve their current sports-betting offer. And after reading today's news of Siena's/Kelley's latest achievement, we don't think we could be any more convinced of their stock's potential. Our opinion is simple....we think this company's capitalization on a fast-growing sliver of the gaming pie could mean big returns later for today's investors. More on that in a second though.    The Ultimate Endorsement  You know, there are probably dozens (maybe hundreds) of effective ways to endorse anything. Celebrities can tout cologne on TV, and an elected government official can publicly support a candidate by throwing a fund-raiser/dinner. But you know which endorsement means as much to us as any of those? The endorsement casinos provide when they add a new attraction. Think about it. Casinos may be the tightest run ships in the country, as absolutely no level of detail is overlooked. Everything from the color and design of the carpet, the placement of the casino between the hotel registration desk and the elevator, and the 'clinking' sound made by a slot machine.......every meticulous nuance about how to draw and keep a crowd has been deliberately thought out.  What's that got to do with Siena? If a casino is willing to spend some big bucks to enhance part of their betting floor (Siena's design service is far from inexpensive), then we think there's just got to be something enormously attractive about the technology. See, casinos aren't likely to spend a nickel if they don't think there's something even bigger down the road. As far as we're concerned, that's the most powerful endorsement Siena could ever achieve....being sought out by people who (ironically) leave nothing to chance.  Point being, that's an awful lot of interest in what Siena brings to the table. We have to believe there's something special - and likely profitable - about their technology. In other words, investors take note...we believe this company could be on the verge of providing major rewards for investors, especially in light of its currently-low trading level.    Siena's Ace - The Technology In a nutshell (which doesn't do it justice), Siena's Race & Sports Book betting systems allow the casino to display and re-arrange all sorts of sports betting information on one screen, which can be adjusted 'on the fly' by a floor manager. Take a look at the nearby image....the technology allows for a completely customizable display, with odds, betting information, and the actual sporting event all one screen.  So what? Like we said, casinos leave no detail un-addressed.  The more common Racing & Sports Book rooms at casinos display an event on a big screen television, and show the lines or odds on an LCD screen somewhere else. And, it may not be possible to customize the way in which each sporting event or race is presented.  Siena Technologies, on the other hand, designs systems that fully integrate the sporting event and the odds on one screen. Plus, the technology allows for easy-to-optimize presentation of events.  The difference in the two may seem minor, but subconsciously, Siena's functionality is considerably better. While the more common LCD/static display design may be functional, it may also be equally frustrating - perhaps annoying - to use if you're a serious bettor. There's nothing more dangerous to a casino's bottom line than a bettor walking out the door just because it was too much of a pain to keep playing. Siena offers casinos a very easy and fully customizable tool for their Race and Sports Books....the kind of thing that makes it easy to keep playing. Ultimately, anything that draws and keeps people in the casino should boost a casino's bottom lines. We think this opportunity is as simple as that.....casinos are likely to demand a technology like this because it drives traffic, and owning Siena shares is a shot at capitalizing on the concept.  However, there are two additional ideas to tuck away if you're mulling over this trading idea.  The first one is the pending patent on the impressive technology. See, Siena isn't just reproducing the old technology...they're offering something that appears to be much better than most current Sports Book rooms. And that, to us, could be the feather in the cap for what we already think is a powerful opportunity for investors.  The second idea - and this is an important one - is a reiteration that we think the 'I want it' mentality is much more powerful than the 'I need it' mindset. To us, given that gaming stocks were able to rise at all in the 2000-2002 bear market validates the 'Wow!' factor behind their Race & Sports Book technology.  Imagine....not only could investors benefit from what we see as a high-demand technology, but if the patent is approved, investors may also benefit from several years worth of Siena's exclusive rights to design and deliver the technology.    Today's News  Care to know why our excitement has been renewed? Siena just delivered a custom-built Race & Sports Book system Santa Fe Station Hotel and Casino. It was the fourth they designed and delivered this year. The net revenue generated from these and other similar projects totaled around $4.1 million last quarter, and now the Santa Fe Station Hotel and Casino (Las Vegas) installment will be beefing up their Q4 figures.  Is that a lot of dough? Compared to where they were a year ago, yeah. Just for perspective, Siena raked in $15.9 million through their third quarter of 2006. For all of 2005 - prior to the Kelley acquisition - they pulled in only $5.9 million. Gross margins doubled that quarter.  Based on the trend we see, we come to two conclusions....(1) the Kelley acquisition seems to have been a brilliant move, and (2) it seems like it's going to be a wise fiscal move. In turn, that's the kind of thing that's likely to whip up demand for shares, which is why we feel you may want to scoop some up now.....before the rest of the crowd beats you to it.  The full press release will appear below. In the meantime......    Putting Your Money on the Table  So what's the investment scenario look like for SIEN right now? We have to say, knowing how we feel about the underlying opportunity for the company, we're equally excited about the outright opportunity in being a shareholder. Yes, in our opinion, this stock is tremendously undervalued in comparison to where we think it could go once more and more casinos recognize their Race and Sports Book technology could be so much better.  Our suggested target area for Siena shares right now is 95 cents, with a suggested stop level of 21 cents. Both are mostly technically driven. The target is approximately a 38% Fibonacci retracement of the high reached in early 2005, and will serve as a good initial upside possibility. The stop of 21 cents is roughly based on the lows seen in September. Both of those may be adjusted in the future, depending on how we re-interpret the chart as time passes.  Currently at 35 cents, shares are obviously on the low end of that range, so the potential upside from here is tremendous for those who also understand the downside risks. But as we said, with the addition of Kelley, is sure seems like Siena is well positioned for a nice future. We don't think shares should be too far behind. If you want to be involved with trends in their early stages, and if you like the idea of Siena's superior technology, then we think you might be very pleased with Siena come this time next year - it sure looks like a strong hand to us.    Siena Technologies Subsidiary Announces Successful Design and Delivery of Patent Pending Race and Sports Book Technology System at Santa Fe Station Hotel and Casino  Kelley Technologies, a pioneer in advanced gaming and entertainment systems, continues to expand footprint in real-time race and sports book venues  LAS VEGAS (DECEMBER 18, 2006) - Jeff Hultman, CEO of publicly traded Siena Technologies (OTC Bulletin Board: SIEN), announced today its Kelley Technologies subsidiary has successfully completed the design and delivery of its patent pending Race and Sports Book Technology at Santa Fe Station Hotel and Casino in Las Vegas.  This is the third of Kelley's newest Race and Sports Book systems to be installed at a Station Casinos property this year, with the first two at Red Rock Casino, Resort and Spa and Green Valley Ranch, both in Las Vegas. The fourth system that was designed and delivered this year is showcased at Boyd Gaming Corporation's Borgata Hotel, Casino & Spa in Atlantic City.  "Joining Red Rock Resort and Green Valley Ranch, the new Santa Fe Station Race and Sports Book raises the bar for race and sports wagering and viewing facilities in Las Vegas," says Art Manteris, vice president of Station Casinos race and sports book operations.  According to Kevin Ruud, Director of Design and Engineering at Kelley Technologies, there are several key differences between the company's new system and the competition. "For starters, we deliver data related to betting lines and other important news into the video display next to the action instead of on a traditional scrolling LED banner board that is separate from the screen," he says. "Also, our large screen displays are powered by the most advanced processors so operators can change multiple images on the fly, to create a more dynamic race and sports book experience."  The early positive response has helped Kelley secure initial design contracts for its Race & Sports Book systems at the Aliante Station Hotel & Casino and Durango Station Hotel & Casino in Las Vegas.  "Kelley has a great reputation for delivering high-end race and sports books systems that deliver reliable real-time data and images combined with a 'wow' factor that makes our clients' venue the place to be," says Jeff Hultman. "Mike Kelley and his team continue to re-define the gaming experience for today's high-tech savvy customer which is why the leaders in the industry want to work with them."  About Siena Technologies.  Siena Technologies (formerly known as Network Installation Corp.), through its wholly-owned subsidiary Kelley Technologies, is a technology company which specializes in the design, development and integration of communication technology and system networks for the resort and gaming industry as well as luxury high-rise condo developments (MDUs). Kelley Technologies has also developed a patent-pending, proprietary next generation Race & Sports Book platform designed for the gaming industry and remains committed to developing the most advanced technology solutions to meet the desires of its clients. To find out more about Siena Technologies (OTC Bulletin Board: SIEN) or Kelley Technologies, please visit www.kelleytechnologies.com and www.enhanceht.com. The Company's public financial information and filings can be viewed at www.sec.gov.  Forward Looking Statements  This release contains forward-looking statements, including, without limitation, statements concerning our business and possible or assumed future results of operations. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons including: our ability to continue as a going concern, adverse economic changes affecting markets we serve; competition in our markets and industry segments; our timing and the profitability of entering new markets; greater than expected costs, customer acceptance of wireless networks or difficulties related to our integration of the businesses we may acquire; and other risks and uncertainties as may be detailed from time to time in our public announcements and SEC filings. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this document to conform these statements to actual results or to changes in our expectations, except as required by law.    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 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. 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