Dow Jones 10572.49 +47.12  3:08 pm EST, Saturday., March 9, 2002  NASDAQ  1929.67  +48.04  For info, visit access.smallcapnetwork.com .  S & P 500  1164.30  +6.77  To be removed, please click here .  Russell 2000    499.85  +4.93  VOLUME 02: ISSUE 19 SmallCap Digest Weekend Edition: Fueling Gains The world is breathing a sigh of relief as recent bullish economic indicators suggest that the recession is over.   For individual investors, the monster moves in the stock market bring back certain euphoric adrenaline that previously was reserved for the 90's.  "It's been a while" is the best way to describe the current environment.  The difference between this current rally and a few previous blips in the last few years is that this time around there is substance to the gains.  This rally is based on fundamentals such as opposed to the relief rallies we are familiar with. It is very important to learn from our past mistakes.  Investors that put all of their eggs in one basket realized astronomical gains during the previous bull market.  This formula does not work when the markets are down and many people ended up losing everything including their initial investment. There is no better time to exercise diversification than in this new rally.  In any market, the hot performing industry will always change as the big momentum players shift their money from one sector to another.  However, for those investors that are more risk adverse and are not aggressive market timers, owning companies of varying market caps in different sectors is proven to be just as profitable. Oil and gas has been one of the most depressed sectors in the past few years but we are beginning to see signs of life.  Oil prices have been increasing, and chances are that they will continue to creep upwards.  OPEC and non-OPEC oil producers have finally put their arguments aside and agreed cut production.  This may be bad news for consumers at the gas pumps, but investors can take advantage of this impending price increase by owning companies in this sector.  If from now until December oil prices continue their trend, similar to 1999, then companies in the industry will achieve substantial gains.  Our favorite idea in this sector is a company we profiled last November. FieldPoint Petroleum (FPPC) is an undervalued oil and gas company that has outperformed the industry in a very depressed environment. For 2001 3rd Q Ending Sept: Quarterly revenue increased 51% versus same period last year.  Nine month revenues increased 64% versus the same period last year.  Nine month cash flow from operations increased 40% over the same period last year.  Oil and gas production increased by 55% for the nine months versus the same period last year. In 2002, we expect FieldPoint to have an even better year as oil and gas prices continue to climb. FieldPoint CEO Ray Reaves is looking to acquire additional assets and boost production to grow the company's assets.  Despite the outstanding company performance, the stock has been a laggard.  It has underperformed our other two profiles by a wide margin.  Most investors wouldn't mind being right two out of three times and produce cumulative gains of 68.31%.  However, in FieldPoint Petroleum we feel that the company deserves a higher valuation based on fundamentals and future growth prospects.  Stock prices often do not reflect the true value of a company.  This is the case for FieldPoint and investors should take advantage of the mispricing.  We originally profiled FieldPoint when the stock was $1.90 per share.  This represented a potential return of 58% from our target price of $3.00 per share.  We are still confident that in 2002 the company will hit our $3.00 target.  By averaging our initial profile price of $1.90 and Friday's closing price of $1.09, investors who dollar cost average FieldPoint would have a cost basis of $1.49 per share.  This would represent a double for investors who initially purchased the stock and are now averaging down.  Patience is the key for investors that own FieldPoint.  Over the course of the next 12 months, an investment in the company means you will own a piece of the oil and gas industry.  The question is not if but when the industry will become hot again.  By owning FieldPoint, investors will be able to take advantage of the gains the industry will produce in the near future.     Click Here For The Original Profile 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.