Dow Jones 12331.60 +47.75 11:55 pm PST, December 5, 2006 NASDAQ 2452.38 +0.00 For info, visit access.smallcapnetwork.com S & P 500 1414.76 +0.00 Change your subscription status here Russell 2000 797.42 +0.00 VOLUME 06: ISSUE 96 SmallCap Digest Upgrade: Suggested Targets & Stops Just when you think the SmallCap Digest couldn't get any better, POW - it's better, at least in our opinion. At the request of many of our readers, we're pleased to announce a major enhancement to this site that could potentially make you more money if you're utilizing our trading ideas. Better still, we'll put the site's improvement straight into action with the help of what we feel is some great news from Web2 Corporation (OTCBB: WBTO). After all, what better way to kick off the use of this new feature than with a story we think could make the most of the new format?  As tempting as it to create a cliffhanger, we feel pretty certain you'll want to read all of today's edition even if we let both cats out of the bag here and now. So, here goes.....  The SmallCap Digest will now be suggesting what we think may be ideal price-target areas and stop levels.  Web2 Corporation's 'ByIndia.com' site is seeing a phenomenal increase in web traffic, and is reported to now be the fastest growing Indian search engine. Moreover, Web2 Corporation announced plans yesterday to, as of the beginning of 2007, offer the site in five additional Indian languages.  Let's start with the ByIndia.com news before moving on to our thoughts about the target and stop framework.    The One-Two Punch On Monday and Tuesday, Web2 Corporation posted back-to-back pieces of what we see as good news.  Monday's announcement was in regards to the growth rate of ByIndia's traffic. According to Alexa.com data - an Internet traffic ranking site - the Indian search engine and social networking site saw web traffic increase by 700% during its first 30 days of being 'live' in its current format (since the re-launch date of October 26th). More than that, as of the end of November, the company says they're the third-most visited Indian search engine site. We detailed the announcement in a blog entry on Monday, which can be reviewed in one of the sidebars to the right.  Tuesday's news may end up even further accelerating the growth reported on Monday. If all goes as planned, by the beginning of next year, Web2 Corporation will roll out ByIndia.com in five additional Indian languages. The strategy can be simplified down to one word - accessibility. The more Internet users there are that can use the site, the wider the net is cast, so to speak. And, the company expects this multi-language addition to allow virtually all Indian Internet users to utilize the search engine. The full details are in the press release below.  In the Internet world, we think success really boils down to one factor - traffic. The more traffic you have, the more opportunities you have to sell products, services, and advertising space. The way we figure it, the rate at which Web2 Corporation is able to increase the number of eyes looking at ByIndia.com could ultimately make the site the premier name among Indian search engines. We think being the best (at anything) makes it considerably easier to monetize and profit from your product. So, you probably won't be surprised to hear our positive opinion of the WBTO's potential for shareholders - we feel it's an outstanding opportunity, especially after we saw how well the market responded to the recent news.    Our Big News Before any explanation of the new suggested targets and stops can begin, we have to preface it with some perspective. Above all else, please keep in mind they are simply suggestions based on our opinions. Yes, we like to think they're educated opinions, and we feel our intimate knowledge of our profiled companies - as well as their stock's trading behaviors - gives us something of an edge. But, at the end of the day, only you can decide whether or not what we see also makes sense for you. And, that may well require you to define exactly what your investing or trading style is. (Refer back to this recent Market Wise column for some help in that area.)  Specifically, we think the new framework may reprise the trader-or-investor question....even for us. While our website tends to have a longer-term investor bias (albeit it an aggressive one), we also understand many of our readers may be making short-term trades using our ideas. Either or both are fine by us, but we'd be the first to acknowledge the application of targets and stops may be a better enhancement for the short-term crowd.  Yet, we don't necessarily think longer-term investors will be left out in the cold. Some of our suggested targets (and stops) could take a while to reach, and we feel investors may still be able to use the ideas to find an optimal entry or exit spot.  Again, how you choose to utilize any target and stop suggestion will largely depend on what you're trying to accomplish, your desired holding period, and your personal risk tolerances. Our ideas may be sound, but you - the individual investor - will need to determine how or if they apply to you.  For what it's worth, it's not as if we're implying we even expect our opinions to always be the right ones (it's true - we don't know everything). At the risk of sounding a little self-serving, yes, we think we do a pretty good job at finding good ideas and timing them well. However, a good defense can be just as important as a good offense. In other words, the stops should play an equal role with the targets, as even we can't predict the future with perfection.  Additionally, the target and stop ideas are subject to change. In fact, we'd be surprised if they didn't occasionally change. That's just trading. Without a crystal ball, over time, we expect to make adjustments to our opinions in an effort to maximize the upside and minimize the downside in an ever-changing market environment. So, you may want to check back with the site on a regular basis to see what's changed.  One last thought, although an important one.....if possible, we encourage you to avoid actually entering with your broker a specific target or stop as a 'sell limit' or 'stop-exit' order on any open position. See, some major traders can literally see the prices you're willing to buy or sell (exit) at. If that same player sees a bunch of shares of one stock 'for sale' at a common price, he or she could potentially create just enough market movement to clear out those open trade orders, then immediately resume trading in the other direction. A mental-stop strategy may conceal your entry and exit parameters, and possibly allow you to avoid an untimely trade. For that matter, we think it's almost as important to recognize that our suggested targets and stops may sometimes be better treated as an area or range, rather than a specific dollar figure. As usual, circumstances will dictate such an interpretation.  With all of those things in mind, you can already view our current thoughts on where an appropriate target and stop may be for many of our currently-profiled companies. Simply look in the left-hand column on any page of our website. You may notice some of our tracked companies aren't there. That's simply because we're waiting for what we think might be a better or smarter entry spot on their respective charts. After all, we still feel timing is a critically important piece of trading the puzzle.    From Concept to Application - WBTO's Chart  We've been monitoring WBTO since the initial profile was released on September 20th. We feel strongly about the company's potential, not just because of ByIndia's growth, but also because there are three other divisions we think are just as impressive in their own right. However, for that potential to materialize in the form of gains, we think other market participants have to see the same potential. In order to spot the instances when news may finally be getting traction, we rely heavily on charts.  Well, based on the volume from Monday and Tuesday, it seems to us the market may have finally taken notice. WBTO was up big on the heels of both pieces of news - a high volume rally each day, with Monday's volume being a record for the stock. Tuesday's volume was the fourth highest volume day ever. Over the two days, shares gained 20.5%. Although far from being a sure thing, this is the kind of move we have, in the past, observed to jump-start a bullish trend.  So how might the suggested targets and stops work using the big WBTO opportunity as an example? As of right now, we feel $3.79 may be an appropriate target area, while $0.89 could be an optimal stop level. Pretty simple really. To reiterate, those are just our ideas based on our opinions, but may still help you develop your own opinion about this chart's potential path. Both figures appear in the grid stationed in the left-hand column of any page on our web site.  Weighing the risk relative to the potential reward, we see a very exciting possibility taking shape....with shares still trading at what we think is a good value. Plus, armed with a framework of suggested target and stop ideas, we feel ownership of WBTO shares may offer an excellent opportunity right now.    Web2Corp's (WBTO) ByIndia.com Search Engine to Add 5 Major India Languages  Popular India Languages Including Hindi, Telugu, Tamil, Bengali, Marathi Added to Boost Rapidly Growing Site's User Base  Tuesday, December 5 -- ORLANDO, Fla.-- The fastest-growing Indian search engine and social networking site announced today that it is about to add a feature that will increase its accessibility even more. According to Internet traffic ranking site Alexa.com, over the last 30 days since it was re-launched as a social networking site and search engine, Web2Corp's (OTCBB:WBTO - News) ByIndia.com has been the fastest-growing Indian search engine and Internet community site. Not content to wait for the growth to slow before offering new features, ByIndia.com is adding support for several major Indian languages.  Starting on January 1, 2007, ByIndia.com will support Hindi, Telugu, Tamil, Bengali and Marathi as well as English for all searches and menu text. Support for these languages will allow virtually every Indian Internet visitor to use ByIndia.com to search, bid for online auctions, blog, create personal pages, browse classified ads, or post and view video clips. By offering functionality that is similar to eBay.com, Blogger.com, MySpace.com, Craigslist.com and YouTube.com all on one site and in 6 different languages, ByIndia.com makes many Web 2.0 applications accessible to India in ways that they never have been before.  With increased accessibility and ease of use compared to competitors, ByIndia.com hopes to drive traffic to its pages and gain market share among Indian Internet users.  Already the #3-ranked Indian-run search engine with an impressive 700% increase in traffic over the last 30 days, ByIndia.com is overtaking other Indian engines in popularity. The search engine that Alexa.com ranks as #2, 123India.com, only supports English, and ByIndia.com already averages almost two thirds of the traffic 123India gets daily. ByIndia also has more than 14% of the traffic that #1 Sify.com does, and ByIndia.com will support Bengali and Marathi, which Sify.com does not.  For more information on ByIndia.com, visit www.ByIndia.com.  For more information on Web2Corp or to see the Safe Harbor Act Disclaimer Notice, visit www.Web2Corp.com.  Contact:  Web2Corp, Orlando  Trevor Longino, 407-540-0452  Communications Director  Source: Web2Corp   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 Web2 Corp's "ByIndia.com" Ranks #1 In Indian Search Engine Growth It was only a few days ago we mentioned ByIndia.com's traffic growth was astronomical after just being launched in late October, but congratulations are again in order for Web2 Corporation (OTCBB: WBTO). The company reported on Monday their Indian search engine and web portal is the fastest growing site in that particular category, according to Alexa.com.  Are we surprised? No, not really. Web2 had been honing the 'stickiness' of ByIndia.com, as well as getting it promo-ready, for months. Within 20 days of its October 16th launch, the Alexa ranking has shot up from 750,000th to 12,745th (among all globally monitored sites). And, less objectively, we think the ByIndia.com site is easily more user friendly and fun to use than the next nearest competitor.  As for what's next, we feel it's going to be more of the same as time progresses. In other words, this rapid footprint expansion could potentially make ByIndia.com not just the fastest-growing Indian search engine, but the outright most-visited Indian search page. It's currently ranked third in the category, and is gaining on the #2 site pretty quickly.  In terms of what it might mean to the bottom line, we can't emphasize enough how important we think it is to be 'best in breed' in whatever category you're in. If ByIndia.com can offer a potential advertiser the most visits, in our opinion, they can pretty much write their own ticket within the Indian market. And based on Monday's response with the stock's chart, it appears other investors agree. WBTO is up nearly 20%, trading at $1.41 after closing at $1.17 on Friday. The rally seems to be threatening a long-term resistance area around $1.60 too, so we feel this chart is well worth watching now, if only to see if this short-tem move materializes into anything more.  For more on the news, click here.    On The Go Up 129% From Recent Lows, Move on Big Volume What a past few days for On The Go Technologies (OTCBB: ONGO)! After closing at 37 cents on November 28th, the stock rallied up to a high of $1.13 before settling in at 85 cents yesterday. That's still a 129% gain, and it happened on some of the best volume we've ever seen for ONGO. And here's the kicker......there's no news behind the run-up (at least none publicly available).  Our thoughts? There are very few certainties in life. The same goes for investing. However, there is one thing we can say with a little confidence about the stock market, and that is, everything happens for a reason. It's not always a reason we like or understand, but it's a reason nonetheless.  In the case of On The Go, the reason isn't clear yet. But, it doesn't change the obvious - somebody now wants ONGO shares in a pretty big way. Given the degree of gain in a short period of time - as well as the big trend reversal - we think On The Go could finally be getting some bullish traction. We expect the reason for the move to come out later. For now, we don't want to get bogged down by the 'but why' game, as it might get in the way of capitalizing on an opportunity.  With that being said, we have a handful of thoughts on the chart.  First, although not foremost, the cross back above the 20 day moving average has been impressive. With the exception of October's surge, the 20 day line has been resistance of late. We'd be even more impressed with a cross back above the 50 day line at $1.60, provided it can actually stay above that intermediate-term moving average line.  We'll also add we don't necessarily feel now is a great entry spot, unless you're a speculator who understands these charts have a lot of downside potential to go with their upside potential. (It could be a great entry spot - we just can't say for sure yet.) We will add, however, that we think this is what the beginning of a long-term recovery could indeed look like. In our opinion, this recent chart merits a closer look; we'll be watching to see exactly what develops, as we think it could be some much-awaited relief for those who stuck it out. Be smart, as always.  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. Receiving the SmallCapDigest Newsletter in multiple locations is the best way of making sure you don't miss the next investing or trading opportunity! For web based email addresses, the SmallCapDigest recommends @yahoo.com or @aol.com for timely and reliable email newsletter delivery. Subscribe Here Note: Your email address will be kept strictly confidential, and will not be shared with any other entity for any purpose at any time. If you no longer wish to receive the SmallCapDigest, simply follow the instructions located at the bottom of every SmallCapDigest Newsletter Edition. 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 $25,000 cash and 75,000 shares of newly issued restricted stock by Web2 Corp. for coverage of the Company. TGR Group, LLC has been paid a fee of $30,000 cash and 20,000 shares (reverse split adjusted 08/09/06) of newly issued, restricted stock by On the Go Technologies Group for coverage of the Company. 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. This should be viewed as a conflict of interest by shareholders or prospective shareholders of the client companies.  TGR, its Members and Members' families, 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 unless specifically disclosed.  All statements and expressions are the sole opinions of TGR and are subject to change without notice. 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