Dow Jones 10,049.46 - 49.68 8:08 am EST, Sun., December 9, 2001  NASDAQ  2,021.26  - 33.01 For info, visit access.smallcapnetwork.com .  S & P 500  1,158.31  - 8.79 To be removed, please click here .  Russell 2000     481.21  -1.02 VOLUME 01: ISSUE 19 Special gift for SmallCap Digest Readers: As the holidays are approaching, the SmallCap Digest would like to introduce the MVP Program.  In appreciation for being a loyal reader, you will be awarded 80 MVP points. Next Tuesday, you will be able to redeem those points for a free, no strings attached 6 week subscription to the Wall Street Journal. That's right- Free, no strings attached 6 week subscription to the Wall Street Journal delivered right to your doorstep. Sign friends and family up for this special holiday gift.  The Wall Street Journal has only allocated 15,000 free subscriptions to our members, and they will be awarded on a first come, first serve basis. Therefore, to take advantage of this offer, please be sure to redeem your points Tuesday as soon as you receive the web address that the SmallCap Digest will provide to you. Unfortunately, this gift will not be available to readers in Canada, Alaska, Hawaii.  This gift is only available to readers in the Continental US.  Small Cap Digest Weekend Edition: How To Outperform The Dow and The Nasdaq Composite Professional and individual investors have been searching for the secret formula to the stock market but their search will never be definitive. There is no perfect method, although pundits will try to have you believe that a variety of tools are available to make you a financial guru.  Market technicians wield the prophetic powers of technical analysis and pound the table telling investors to take immediate action.  "What 'immediate action' should be taken?" investors may ask.  This is where the line gets drawn. There are market analysts whose job is to tell you that the market may go down or up, making for perfect predictions.  What investors do with these two sided recommendations is none of their business. The investment banks will point towards their courageous analysts who spend each waking moment on the limb recommending securities that they feel are super strong buys.  Of course not every stock is a super strong buy since there has to be some sort of objectivity.  Companies that decide to part ways with a banker may feel the wrath of a hold rating or better yet the occasional sell rating.  With all this noise confusing investors, there is little surprise that Wall Street is shouting into deaf ears.  Results are what is plain as day.  Like a sporting event where the final results are forever embedded in the record books, performance is undeniable evidence.  Year to date, the Russell 2000 small cap index has beaten up on its older siblings - the Dow Jones Industrial and the Nasdaq Composite.  The Dow is down 5.6% for the year while the tech laden  Nasdaq is down 11.8%.  Considering this year could've been much worse, investors are breathing a sigh of relief.  However, not everyone's portfolio is in the red.  This year, the Russell 2000 has squeaked out a nice 4% gain.    How did this small cap index end up outperforming the two indexes where most of the market leaders reside? Below are some of the reasons why small caps are outperforming: Economies of Scale: Small cap companies are able to sustain impressive growth rates while large companies are unable to grow when the macro economic environment deteriorates. Foreign Exposure: The slowing global economy is having a material impact on large corporations.  The majority of small caps conduct their business within the United States. Rate Cuts: Growing small caps are able to access capital at incredibly favorable rates to finance and grow their operations. Investor Sentiment:  Investors are fed up with Wall St.'s biased research and have decided to find quality companies with the help of resources such as the SmallCap digest.  This past year have taught investors that no company is immune from falling to the depths of the lowest denominator.  Going forward,the SmallCap Digest is proud to provide investment ideas for our readers that we feel have the potential to appreciate considerably in value.  Through our unparalleled due diligence, we will search through the small cap world looking for those companies that possess the qualities of a star company in the making.  D I S C L A I M E R : The SmallCap Digest is an independent electronic publication committed to providing our readers with factual information on selected  publicly traded companies. SmallCap Digest 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, this publication accepts compensation from third party consultants and/or companies which it features for the publication and circulation of the SmallCap Digest or representation on SmallCapNetwork.net.  Likewise, this newsletter is owned by TGR, LLC.  To the degrees enumerated herein,  this newsletter should not be regarded as an independent publication. Click Here to view our compensation on every company we have ever covered, or visit the following web address:  http://access.smallcapnetwork.com/compensation_disclosure.html for our full compensation disclosure and http://access.smallcapnetwork.com/short_term_alerts.html for Trading Alerts compensation and disclosure. All statements and expressions are the sole  opinions of the editors and are subject to change without notice. A profile, description, or other mention of a company in the newsletter 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 editor, members of the editor's family, and/or entities with  which the editor is affiliated, 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. The profiles, critiques, and other editorial content of the SmallCap Digest and SmallCapNetwork.net may contain forward-looking statements relating to the expected capabilities of the companies mentioned 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 THE EDITORS OF SMALLCAPNETWORK.NET. 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.