Dow Jones 14062.67 -101.86 9:30 am PDT, October 10, 2007 NASDAQ 2802.40 -1.51 For info, visit access.smallcapnetwork.com S & P 500 1559.41 -5.74 Change your subscription status here Russell 2000 842.37 -3.35 VOLUME 07 : ISSUE 95 The Pickle Progresses, MIVT On The Verge In This Edition...  Spicy Pickle Progress  Enigma Up & Running  Merck Takes Another Small Step  MIV Therapeutics on the Verge  I came very close to publishing this newsletter last night rather than this afternoon. But, after thinking it over, I decided I'd rather see how things started out today before highlighting the charts I believe are worth a closer look. Why? While overall I believe the economy is well poised to encourage strong corporate performance, quite frankly, I think things are a little frothy. That froth, however, doesn't really seem to be impacting the charts I wanted to show you. Also, we may have yet another great small cap trading idea for you this weekend. I know the dust hasn't even settled yet on Enigma Software, and barely settled on Spicy Pickle. However, you have to strike while the iron is hot, and there are a lot of small cap stocks looking real good right now. I'm still not sure if Saturday will be the day, but be sure to keep an eye out for the newsletter in case it is. (This particular company is a classic small cap story - they've taken a new technology and done something very unique but simple with it, and their potential market is huge. I love that formula.)  In the meantime, here are some key updates on a few of the companies we've been following.    Spicy Pickle  Can you say follow-through? On Monday, we pointed out how Spicy Pickle's (OTCBB: SPKL) chart looked a heck of a lot like a bullish engulfing bar had been made with Monday's big gain. If you missed it, or want to know what a bullish engulfing pattern looks like, just click here to review the blog entry.  Anyway, what I wanted to see on Tuesday was a move higher than Monday's close, just to confirm that the engulfment was a valid one. It would be nice if such a gain was made on even higher volume.  Well, Spicy Pickle went two for two. SPKL gained 9 cents (8.4%), and it was on higher volume. Bullish engulfment confirmed. Today's action is just as impressive...up 19 cents (16%) so far, after reaching a new high of $1.39.  What prompted today's push? Progress. Spicy Pickle announced late yesterday that two more stores had opened. That brings the total of up-and-running unites to 26, with 12 more to be opened by the end of the year. A little under 50 more franchises have already been signed in addition to those 38. Am I surprised? No, not really. The company said they were going to do it, and based on the strength of their growth to date, I had no real reason to think they wouldn't. But, if there was anybody out there doubting the expansion could or would happen, there ya' go.  Undoubtedly many of you are now wondering about not only one gap, but two gaps on the chart. That's a valid concern. I think the attraction to SPKL is in its long-term potential, but the short-term has probably been far better than most anybody imagined. The result is a stock with a lot of profits that could be taken by its investors. Though our coverage is for the long haul owners, I can't say I wouldn't understand locking down a little now. I'd still consider buying more (or again, or for the first time) on a good pullback though. In fact, the more I think about it, the original price target of $1.40 may not be aggressive enough. We'll deal with that issue when and if we reach our suggested target, possibly by renewing the alert with different parameters. However, with a high of $1.39 already today, we may have to do just that pretty soon.    Enigma Software  Here we are, the third day into our coverage of Enigma Software (OTCBB: ENGM). I have to say, I'm pleased with the early results. ENGM closed at 24 cents on Monday...up 6 cents from Friday's (pre-coverage) close. Nice move, but not red hot. I like that actually. Enormous gains - especially with gaps - are just a headache to trade around. What I saw on Monday was simply a strong move, and methodical. In fact, the opening price of 22 cents and the low of 20 cents meant pretty much anybody could have gotten in at a good price if they wanted in. Since then, Enigma's shares have held their ground at 24 cents.  We actually got an e-mail asking about ENGM, and what was next in terms of being an owner. While I certainly don't have a crystal ball, I do have some ideas about how I see this chart unfolding.  First of all, know that Monday's 326,000 shares that traded was the biggest single-day volume ever for ENGM. So, I'll give traders and the market makers a break. That kind of jolt is usually going take a couple of days (if not more) to sort through. As long as we don't see it give up too much ground, I don't mind not repeating Monday's move the very next day.  As for when we might see this thing start to climb, I think the right timeframe is measured in months...maybe weeks, but probably months. Then again, ENGM rallied from 4 cents to more than 50 cents between January and March, so it's certainly capable of setting a quick pace. Either way, I don't necessarily expect our suggested target of 65 cents to be hit later this week. Patience.    Merck  Just another short comment on our Merck (NYSE: MRK) suggestion from January, which we actually updated on September 27th. At the time, Merck's shares were at $52.30, and we were waiting to see if we were going to be able to make that last leg higher and reach our target of $59.74.  Well, we haven't yet hit the target, but we have made a little progress. MRK snapped out of its funk and has made its way up to the current price of $53.42. This week's highs also topped July's highs. So, it looks like Merck is still working hard, even if not working fast.  The one thing I don't particularly care for is the volume. There's just not enough of it. But, it is what it is.   MIV Therapeutics  This is actually the one I was waiting on. You might recall we've been watching this chart, waiting to see if MIV Therapeutics (OTCBB: MIVT) was going to be able to make a significant move higher after a fairly unproductive Q3. Using Fibonacci lines, I pegged 48 cents as the key level to watch.  Well, with today's high so far being 48 cents, I really think this chart's worth keeping an eye on now. That's certainly not to say we have an upside move in progress. On the contrary - we specifically don't have one...yet. MIVT would have to get above 48 cents to really say the 38.2% retracement line had been knocked down. Anything less, and I chalk it up to simple volatility. By the way, MIVT is lower for the day so far...sent lower after a brush with the 48 cent mark. That's why we don't want to get too excited yet.  What I can't just chalk up, however, is how the mood changed here. There was some news back on September 27th about a co-venture with Smith & Nephew. That was the same day the stock really started to rebound. The thing is, that partnership is not going to have an immediate impact, and the degree of impact it could have is still in question. I have to think most of the market knows this, yet, we've seen shares creep even higher...on some very good volume. Yesterday's 5 cent (12%) gain was on pretty decent volume (relatively) following a small easing last week. Today we're up again. Why? Great question. I've heard nothing (not even a rumor), but somebody's clearly buying this one again.  Anyway, keep an eye out for Saturday's edition. If it's not a new company, it should still be something good.     We Value Your Feedback   Got comments, questions or suggestions? Send 'em on over: Email the Editor 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 Small Cap Network 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 Small Cap Network Email Newsletter on a regular basis. 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Unsubscribe Here D I S C L A I M E R: The Small Cap Network, its website and email newsletter (hereafter, cumulatively referred to as "SCN") , is an independent electronic publication committed to providing its readers with factual information on select publicly traded companies. SCN is owned and operated by TGR Group, LLC ("TGR"). 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 SCN. To the degrees enumerated herein, SCN 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://access.smallcapnetwork.com/profile_disclosure.html for our full profiles and http://access.smallcapnetwork.com/short_term_alerts.html for Trading Alerts.  TGR Group, LLC has been compensated 200,000 shares of newly issued restricted stock by Enigma Software Group, Inc. for coverage of the Company. Larry Isen, the editor and publisher of the OTC Journal, through various entities he controls, has purchased 1,200,441 shares of Spicy Pickle at an average cost of $.2125 per share. These purchases were made in Spicy Pickle private offerings. The aforementioned purchases were made between August of 2005 and August of 2006. In addition, Larry Isen has received 785,000 shares of Spicy Pickle common stock for consulting services. In addition, MarketByte LLC, an entity controlled by Larry Isen, has received a fee of $30,000 cash, and 300,000 newly issued restricted shares for coverage of Spicy Pickle. TGR Group LLC, the publisher of the Small Cap Network, has received $30,000 and 300,000 newly issued restricted shares for coverage of Spicy Pickle. Mr. Isen is an affiliate of TGR Group. In addition, two other individuals affiliated with TGR Group have purchased a total of 300,000 shares at $.25 per share and received an additional 70,000 for consulting services. Current positions of the aforementioned can be found at www.otcjournal.com and access.smallcapnetwork.com in the Spicy Pickle information section. From March of 2005 through July of 2006, TGR Group LLC was paid a fee of $40,000 by MIV Therapeutics for coverage of the company. 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