Dow Jones 10259.74 + 87.60  5:08 am EST, Mon., January 7, 2002  NASDAQ   2059.38 + 15.11  For info, visit access.smallcapnetwork.com .  S & P 500   1172.51 +   7.24  To be removed, please click here .  Russell 2000     499.30 +   3.79  VOLUME 02: ISSUE 2 Is It Party Time For Wall Street? The answer is YES but not in the ways that investors would think.  Job cuts are rampant throughout the investment banking world.  Even BUY SIDE firms such as Fidelity, Janus, Vanguard and the thousands of other mutual funds out there are trimming their workforce.  The reduction in staff on Wall Street can partially be attributed to a stagnant IPO market which in turn has reduced fees for investment banks.  This has led to the inevitable elimination of many research analysts and their support staff.  The BUY SIDE has had two consecutive years of dismal returns and investors are wondering whether losing money on their own is better than having someone else lose it for you! With all the negativity, how can Wall Street have a party?  The answer lies in the calendar.  Each new year brings opportunities for the investment banks to put on "Conferences" where their clients show off to potential shareholders, also known as the "Almighty Buy Side".  Fund managers gather like cattle to warm and sunny locations where they are fed hundreds of hours of information from company CEOs explaining why their company is the stock of 2002. These conferences often provide a forum for CEOs to elaborate on new happenings within the company that have recently taken place.  It is no surprise to find press releases being set on rapid fire during these gatherings.  For 2002, the conference circuit starts off today at the Morgan Stanley Internet Software & Networking Conference which concludes on January 9th. The conference will feature a wide variety of leading internet, software and networking companies and is timed to provide firsthand insights into corporate strategy, positioning and financial results. Morgan Stanley will host approximately 108 companies, in Scottsdale Arizona, within a format of 4 tracks of concurrent company presentations. One of the companies presenting at this conference is software maker Vignette Corporation (VIGN) which provides content management systems.  This company is presenting today at 2pm.  Coincidentally, the company issued a revenue warning at 1:11am EST. Looks like some people may be throwing tomatoes during Vignette's presentation. There will obviously be bad news coming from some companies at these conferences, but usually they are positive since the basis for these events are to PROmote the company.  Other notable companies presenting at the Morgan Stanley Conference:   3Com (COMS) President and CEO, Bruce Claflin will present at the Morgan Stanley Internet, Software, and Networking Conference in Scottsdale, Ariz., on Tuesday, January 8, 2002, from 9:30 a.m. to 9:55 a.m. EST. Aspect Communications Corporation (ASPT), Beatriz V. Infante, Aspect's president and chief executive officer, will be presenting at the Morgan Stanley Internet, Software and Networking Conference on Wednesday, Jan. 9, at 9 a.m. EST. Tellabs (TLAB) Senior Vice President of Global Marketing Stephen McCarthy will speak to the investment community at the Morgan Stanley Internet Software and Networking Conference in Phoenix, Ariz., on Jan. 7, 2002 at 9:30 a.m. Eastern time.  Riverstone Networks (RSTN) President and CEO Romulus Pereira is scheduled to present at the Morgan Stanley Internet, Software and Networking Conference at 4:30 p.m. Eastern Standard Time.  CNET Networks, Inc. (CNET) Shelby Bonnie, the company's chairman and chief executive officer, is scheduled to present at the Morgan Stanley Internet, Software & Networking Conference in Scottsdale, Arizona, on Tuesday, January 8, 2002. CNET Networks' presentation will be web cast live at 5:00 p.m. ET  There are an additional one hundred companies presenting but not all of them have issued press releases. Wall Street is hardly known to be original. So, it may come as no surprise that the Salomon Smith Barney 12th Annual Global Entertainment, Media, and Telecommunications Conference is being held in the same city of Scottsdale, Arizona.  Oh, and it is going to be occurring at the SAME TIME.  The Morgan Stanley conference is being held at the Scottsdale Phoenician hotel, and the Salomon Smith Barney conference is being held at the Scottsdale Fairmont Princess hotel.  These two hotels are only 14.08 miles apart. Investors must be wondering what goes on at these highly exclusive conferences and it is possible to attend? Is it possible that those attending in person are given additional information?  Will those fat cat fund managers be given access to executives not granted to those residing on the lower end of the totem pole?  The answer is obvious but keep in mind that these fund managers command billions in capital that are sitting in their funds earning very little interest.  The losers of 2001 were sold at the end of the year for tax loss purposes as well as repositioning.  Then there are those new fund managers that have replaced their predecessors and are looking for some companies to buy.   For many of the presenters in attendance, this week is the opportunity to land some institutional following and if they are lucky some large shareholders.  This will undoubtedly help increase the company's share price and overall exposure. Unfortunately not all companies are able to attend these conferences.  Banking fees and relationships lead to invitations.  Small cap companies are rarely invited to these conferences because they do not generate the banking fees that lead to admittance.  Instead, these companies must rely on continuing to perform well and waiting for their time to be discovered.  The SmallCap Digest is always looking for the next Cross Media (XMM) which is up over 50% in just two months.  We make a commitment to find these diamonds in the rough and make sure our subscribers are the first to know.   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. 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