Dow Jones 12556.08 +41.10 8:27 am PST, January 13, 2007 NASDAQ 2502.82 +17.97 For info, visit access.smallcapnetwork.com S & P 500 1430.73 +6.91 Change your subscription status here Russell 2000 794.26 +5.81 VOLUME 07: ISSUE 5 Titan Global Holdings - Our First Trading Idea of the Year  Company Name: Titan Global Holdings, Inc. Stock Symbol : TTGL Coverage Initiated: January 13, 2007 Current Price: $1.21 Average Volume: 40,572 52 Week Range: $0.139 - $1.26  Suggested Target: $3.00 Suggested Stop: $0.70 I'm usually glad the rest of the market overlooks incredible small cap ideas. It gives our readers a little time to get in at low levels - if they want to - before the rest of the crowd jumps on the bandwagon. In today's case though, I think any action needs to be taken soon, as it looks like this stock is getting real popular, real fast. Translation: Shares have already rewarded shareholders with a 450% gain since May of last year. The good news is, there still seems to have plenty of steam for the months ahead....for those who don't hesitate.  The company is called Titan Global Holdings (OTCBB: TTGL), and if you haven't heard of them before, they're a diversified telecom service provider and circuit board maker. Specifically, they make printed circuit boards (mostly for the military), and pre-paid phone cards. We'll look at the business in a little more detail below. For now....  Whether you're familiar with the outfit or not, I think you're going to be very glad we're telling you about them now. Why? Enormous potential for gains, plain and simple. The way I figure it, this stock is trading at about 1/3 of its actual value. As such, I also think this stock has the potential to at least double - and maybe triple - within a year. The numbers just look that good.  Today's news seems to confirm the suspicion, I think you'll agree. I also suspect you'll want to be a share owner, if you don't already, by the time you get to the bottom of today's edition. And when comparing the potential risk to the potential reward, I think that might be a good decision for small cap enthusiasts.   This Year Vs. Last Year Normally we'd describe what the company does in this space, but honestly, I can't wait to get to the part of the story that led me to do a double-take...the dollars. Check out these numbers. They may seem too good to be true, but trust us - they aren't typos. Once you get done thinking about the historical results, prepare to be blown away by the forecasted results. Titan posted a revenue increase of 382% between fiscal 2006 and fiscal 2005.    The specific breakdown is as follows.....    For 2006, Titan's Communications Division reported revenue of $89.3 million, up 1,435% from $5.8 million the previous year. EBITDA was $8.5 million, a 978% increase from a $785,000 EBITDA in the previous year.  Last year, Titan's Electronics and Homeland Security Division reported revenue of $20.5 million, up 16% from $17.7 million in the previous year. The EBITDA loss of $554,000, much better than the previous year's EBITDA loss of $2.9 million.    The change in the bottom line between fiscal 2005 and fiscal 2006?  The Company reported $7.9 million in EBITDA earnings for 2006 versus an EBITDA loss of $2.1 million the previous year.    Is there anything about the company's recent history that makes you think they aren't on track to live up to their own expectations? For us there isn't. We're convinced this is a smart investment based on the trend, as well as an extreme undervaluation. We see more potential gains for owners in the future - long term and short term. Keep reading though...the coming year appears as if it will be just as impressive.    This Year Vs. Next Year Those 2006 improvements? We expect more of the same in 2007. This time around though, we may also see a big reward for investors.  The company is planning on doing $140 million in sales in fiscal 2007 (beginning September 1st, 2006), compared to $109 million last year (ended August 31st, 2006). That would be a 28% improvement.  Titan Global Holdings expects to produce $17.5 million in EBITDA in 2007, versus an EBITDA of $7.9 million last year.  TTGL currently has capitalization of - and here's the stunning part - about $60 million.    Did you catch the last part? Titan is looking to rake in revenues of $140 million this year (and we fully feel they will) with a mere market cap of $60 million. Folks, there's the opportunity in this stock. A 'typical' market cap for most stocks is anywhere from 1 to 4 times sales. For Titan Global, the cap/sales ratio is 0.53......at least half of what some say it should be. I'd contend it's even more undervalued than that.  To put it in more relevant terms, if the share price moves up in line with what you might call a 'just average' cap/sales ratio of 2, the market cap should be somewhere around $280 million based on 2007 estimates. If that indeed panned out, it would translate into a share price of roughly $5.60, and a gain of 360% for new buyers. Stunning....just stunning. Needless to say, this is why I think you'd want to own shares today if you don't already. And on a side note, the move from an EBITDA of $7.9 million to $17.5 million puts Titan within striking distance of a positive bottom line. If the swing to profit occurs this year like I think it could, this stock may just launch like a rocket. Obviously to reap the full benefit of such a move, one would have to be in a position before that happened.    Getting to There From Here And can it happen? Can Titan really produce the kind of results that would drive its shares even higher? Based on yesterday's press release (below), we'd have a hard time understanding how it couldn't happen. Titan Global Holdings is executing extremely well, and more importantly, are pulling in dollars as proof.  Take the news for instance. This time around, we learned the global communications division saw $11 million in sales in December. That was 52% higher than last November's results, and 28% higher than November's (2006) results. And, results have pretty much been that way for months now. So yeah, we have to think they'll be able to easily top last year's results and hit that $140 million target.  And why do I feel so strongly that Titan will be able to deliver on the plan and reward investors at the same time. One simple reason - they've already proven they can put up bigger and bigger numbers. I think comparing 2005 to 2006 should have made you a believer, but if not, maybe the chart will. But first, a quick explanation of what they do....    What They Do While 'how' any company drives business is important, I don't know that this is actually the important part today (the numbers below are the jaw-dropping benefit to investors). But, it's still worth knowing at least how the company can post the kinds of sales they do.  In a nutshell, Titan Global is a holding company made up of a handful of subsidiaries.  Oblio Telecom creates and markets pre-paid telephone products and sells them through 60,000 distributors.  PINLESS, INC. is a division of Oblio Telecom, Inc., and provides pre-paid long distance products for the wire line and wireless markets  There are two Titan PCB Corporations (labeled 'East' or 'West'). These companies both manufacture circuit boards.   There's a new venture as well....Titan is now getting into the pre-paid cell phone business. The technical term is 'mobile virtual network operator'. Call it what you want - we think it's a great fit for the company, as it taps into the market that Titan already serves. Sales and earnings are increasing across the board (no pun intended) for these key divisions, which is why the 2007 forecast is so deservedly optimistic.    Our Trading View Not that we've minced words yet, but in plain English, we feel Titan Global shares are an amazing opportunity, and the currently-low level may be a last chance to get in while the gettin' is good. But like we also said, it sure seems like other investors are quickly latching onto this idea - shares are going strong now, and have been accelerating for weeks. So, if you're in agreement with us about this mind-bogglingly bullish idea, the time to do something about it is soon....whenever stocks start trading again after the long weekend.  If that doesn't push you over into the "I'm now a TTGL owner" camp, then this might - as the press release states, Titan expects to release Q1-2007 figures sometime this coming week. Yes, we can understand not wanting to chase it after a strong run, but let's be realistic....if the numbers are as good as the recent results have been, do ya' really think we're going to see the stock stick around its current levels? We doubt it. In our opinion, it's already undervalued. A little good news could go a long way, and send the stock through the roof in a hurry. That's not a prediction - we're just saying weigh the odds (and potential size) of the upside against the downside. To us, the equation looks very tilted to the bullish side of things.  We're setting our suggested target at $3.00, with a suggested stop of $0.70. Assuming anybody who likes TTGL gets in Tuesday at the same price as Friday's close of $1.21, that would be good for a 150% gain. But, we'd say an entry of anywhere up to around $1.40/$1.50 would still be a bargain. Beyond that, it could make more sense to pick and choose an advantageous entry level....it's really impossible to say until we start to see it trading post-earnings. Of course, that's still well under our theoretical value. By the way, if the chart progresses nicely don't be surprised to see us raise the target.  Bottom line......  Ladies and gents, in our opinion, TTGL could be one of the ideas that makes 2007 a very profitable year for you - we just see that sort of potential. In our view, the underlying results easily support a lot more price appreciation, and we think current as well as new owners are going to be very pleased when it's all said and done.   Titan Global Communications Division Reports Record Revenues of $11 Million for December Representing 52% Yearly Growth  Strong December Financial Performance Indicates Significant Continued Growth from Communications Division in Fiscal 2007 Dallas-Titan Global Holdings, Inc. (OTCBB: TTGL), a high-growth diversified holding company, announced today that its Communications Division generated a record $11 million in revenues for the month of December, a substantial 52% percent increase for the same month from the previous year. The strong December results precede the Company's Q1 2007 financial report anticipated for next week.  The December 2006 revenues indicate a positive monthly trend in growth with an increase of approximately $2.4 million over the month of November, 2006, a 28% increase in revenues.  The strong revenue performance for December, which does not include revenues from the Company' Electronics and Homeland Security Division, indicates continued growth in the new fiscal year and further validates the Company's high-growth business model of convergent subsidiaries that capitalize on the worldwide demand for new communications and connectivity services and products.  "The record month at Titan's Communications Division demonstrates that we are on the path to reach Management's revenue guidance. We believe our aggressive growth initiatives to expand market share for our Oblio and StartTalk subsidiaries are taking hold," said Kurt Jensen, President and Chief Executive Officer of Titan's Communications Division. "We have full confidence that this organic growth will continue to build shareholder value and will help ensure another strong fiscal 2007."  Oblio Telecom, a unit of Titan's Communications Division, which accounts for approximately 80% of Titan's total revenues, is the second largest publicly-owned company focused on the international prepaid telecommunications space. Oblio distributes international prepaid telecommunications products to more than 60,000 independent retailers throughout the United States. Oblio recently reported record revenues topping $89.3 million in fiscal 2006.  "We achieved a strong growth trend due to our management team's ability to anticipate and identify opportunities to promote organic growth from our complimentary subsidiaries," said Bryan Chance, Chief Executive Officer of Titan Global Holdings. "These reported revenues are exemplary of Titan's overall ability to build a healthy bottom line and commitment to building shareholder value."  Another major contributor to the record December revenues was the better-than-expected growth of Titan's StartTalk subsidiary, which owns, leases and operates telecommunications hardware. StartTalk recently announced an anticipated 200% expansion of the Company's telecom network capacity to accommodate growing traffic from Oblio's international telecommunications operations.  Additionally, Titan recently announced an agreement to distribute targeted international prepaid products in the U.S. that allows the Company to distribute Sprint private-label prepaid calling cards to retail and other business via Titan vast distribution network.  About Titan Global Holdings  Titan Global Holdings, Inc. ("Titan") (OTCBB: TTGL) is a high-growth diversified holding company with a dynamic portfolio of companies engaged in emerging telecommunications markets and advanced technologies. In its last fiscal year Titan generated in excess of $109 million in revenues on a consolidated basis.  Titan's Oblio Telecom Inc. ("Oblio") telecommunications subsidiary, based in Richardson, Texas, is a market leader in prepaid telecommunications products and the second largest publicly-owned international telecommunications company focused on the prepaid space. Oblio leverages strategic agreements with Tier 1 telecommunications leaders Sprint and Level3 to supply its brand-name prepaid calling cards. Annually Oblio sells an estimated 35 million of its brand-name prepaid calling cards through its established distribution channels estimated at more than 60,000 retail outlets.  Titan Wireless, Inc. ("T Wireless") is Titan's wireless subsidiary and is a mobile virtual network operator ("MVNO"). T Wireless sells its MVNO prepaid wireless products and wireless services through Oblio's established distribution channels. Titan's Electronics and Homeland Security division specializes in advanced manufacturing processes to provide commercial production runs and quick-turn delivery of printed circuit board prototypes for high-margin markets including Homeland Security and high-tech clients.  For more information, please visit: www.titanglobalholdings.com. For investor-specific information and resources, visit http://www.trilogy-capital.com/tcp/titan/ or http://www.b2i.us/irpass.asp?BzID=1314&to=ea&s=0. To view current stock quotes and news, visit http://www.trilogy-capital.com/tcp/titan/quote.html. To view an investor fact sheet about the company, visit http://www.trilogy-capital.com/tcp/titan/factsheet.html.  Forward-Looking Statements  Safe Harbor Statement Under the Private Securities Litigation Act of 1995 -- With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. The actual future results of TTGL could differ significantly from those statements. Factors that could cause actual results to differ materially include risks and uncertainties such as the inability to finance the company's operations or expansion, inability to hire and retain qualified personnel, changes in the general economic climate, including rising interest rate and unanticipated events such as terrorist activities. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms, or other comparable terminology. These statements are only predictions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements. For further risk factors see the risk factors associated with our Company, review our SEC filings.  Contact:  Trilogy Capital Partners  Financial Communications:  Paul Karon, Toll-free: 800-592-6067  paul@trilogy-capital.com    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. 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 $30,000 cash by Titan General for coverage of the company. In addition, TGR Group LLC has been pledged a fee of 100,000 warrants convertible at $1 into restricted shares by Trilogy Capital 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. A profile, description, or other mention of a company within SCD 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 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 TGR.  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.