Dow Jones 11584.54 +0.00 4:53 am PDT, May 9, 2006 NASDAQ 2344.99 +0.00 For info, visit access.smallcapnetwork.com S & P 500 1324.66 +0.00 Change your subscription status here Russell 2000 781.60 +0.00 VOLUME 06: ISSUE 34 Turnaround Time at Newave The turnaround story is starting to unfold at Newave, just how we anticipated it. On March 22nd, we recommended Newave Inc. (OTCBB: NWWV) at 19 cents, much to the skeptical dismay of many. However, shares of Newave have since appreciated as much as 79% from that .19 cent level and are currently trading around 27 cents on nice volume. Not too shabby considering a coveted barrel of crude or a highly sought after ounce of gold hasn't appreciated that much since March. Oh, and for you S & P lovers, the SPDR's (AMEX: SPY) have appreciated a whopping 3% in the same period. If you didn't get in then, no worries, we think there's much more in the pipeline to provide a catalyst for further stock price appreciation. Recent improvements to both the financial and operational aspects of the company have us convinced NeWave has turned the proverbial corner, and is now an essential component of any successful small cap portfolio. A time to buy, in our opinion, not sell.   Read on...the numbers get juicy. After a record 2005, and a solid Q1 of 2006 in which the company's revenues approached $4 million, NeWave reported today in addition to posting its first ever profitable quarter, Q1 2006 revenues increased by 212% in comparison to Q1 2005.  Although not overwhelming, the company's $194,380 in Q1 2006 net income represents a significant improvement to NeWave's operational efficiencies as a net loss of $1,291,480 was recorded during Q1 2005. In addition to the company's recent turn from loss to profit, following its strategic plan to "reduce debt by 50%" during 2006, NeWave has also announced today that it has effectively reduced debt by more than $1 million since January 1. The news just keeps on getting better and future advancements and announcements such as this should surely pave the way for improved shareholder returns. Through the development of an optimal business strategy that aggressively targets immediate high growth opportunities within the retail e-commerce sector with a diverse product line and an innovative market campaign, NeWave continues to experience record growth.  NeWave continues to improve its bottom line through intelligent business decisions such as the recent outsourcing of the company's call center to an industry proven, cost-effective Asian provider. Philippines - based call center PNI-KMPG Inc. (PNI) is currently facilitating NeWave's ability to convert the more than 240,000 (and growing fast) monthly web-site visitors into repeat customers, providing a significant opportunity for near-term growth without hiring one new employee. In addition, the strategic development of partnerships with leading search engine optimization firms such as 'Submitawebsite', have allowed NeWave to exponentially increase web site traffic by improving the company's ranking in relevant search engine terms, therefore increasing the company's reach at a minimal cost.   Trading Tip and Tech Thoughts Regardless of what the past 6 weeks have had to offer, we believe this is only the tip of the iceberg for NeWave's future growth and investor returns. We strongly suggest accumulating shares at current levels. NWWV stock has a very good chance of gapping up Tuesday morning. Any shares of NWWV purchased below $0.35 should prove to be a profitable long-term investment. Additionally, limit orders placed between Mondays close and $0.32 a share would secure an even better position. Look for a minor breakout above $0.35 and a larger one above $0.40.   As shown in this weekly chart of NWWV, the stock has continued to trade sideways of late on better than average volume. It appears quality buy side interest has shown up in the stock. It's also interesting to note that the market finally received weekly confirmation of a "double repo" of the 3x3 DMA suggesting the stock could be in for a major directional change (a double repenetration of the 3x3 is defined as a break above, a break below and another break above the 3x3 DMA all on the close of weekly bars in this case). Although we usually like to see double repos confirm within seven to eight trading periods, one can't ignore it is one of the most powerful leading indicators for a major directional change in a stock. Should NWWV start getting some significant momentum to the upside, we've included the 3/8 and 5/8 retracement levels of its complete selloff that started back in May of last year. A move in coming weeks to the $.80 cent level would be no surprise. Looking more to the shorter term, you will also notice that the Stochastic indicator is in "oversold" territory and reversing upward, giving us what appear to be both longer term (the weekly chart) and nearer term (the daily chart), buy signals. This technical analysis accompanied by the fundamental improvements noted in today's press release should pan out to be the beginning of a prolonged uptrend for NWWV. Taking into consideration NeWave Inc.'s recent growth and enormous near-term potential, this turnaround story could be getting better by the quarter.   NeWave Posts Record 212% Increase In 1st Quarter Revenue; Announces First Ever Profit Goleta, CA - May 9, 2006 Newswire / NeWave, Inc. (OTCBB: NWWV - News) today announced record revenue as well as its first ever profit during the first quarter of 2006. Revenue for the quarter ended March 31, 2006 was a record $3,932,343 vs. $1,258,616 for the quarter ended March 31, 2005, a 212% increase. Net income during the quarter ended March 31, 2006 was $194,380 vs. a net loss of ($1,291, 480) for the quarter ended March 31, 2005. The Company's complete financial results can be viewed in its Form 10-QSB filing for the quarter ended March 31, 2006. NeWave CEO Michael Hill stated, "I am extremely proud to announce to our shareholders, NeWave's first ever profit generated from remarkable growth in the first quarter. Additionally since January 1, we have been able to reduce our debt by over $1 million." He added, "During mid-2005, we embarked on an aggressive plan to focus exclusively on our core business, which we will felt would ultimately assist us in accelerating our path to growth and profitability. Earlier this year, we publicly outlined our strategic initiatives for 2006 as follows; To organically increase revenue by 50%. Achieve corporate wide profitability within the year. Reduce debt by 50%. The full scale roll-out of www.buydiscount.com Pursue a potential acquisition which is scalable and accretive Clearly so far we have performed to expectations and then some, but recognize that we still have our work cut out for us. We need to retain sharp focus on the steps we've taken to get to this position and believe at some point the market will begin to recognize our achievements and rising profile. Ultimately, we will explore all options necessary to extract a valuation for our shareholders commensurate with our performance and look forward to continued progress this year." About NeWave, Inc. NeWave, Inc. through its websites 'onlinesupplier.com', 'buydiscount.com" and "mysoftwaretutor.com", provides ecommerce solutions and thousands of high value products at significant savings to its online loyalty club customers and members. To find out more about NeWave (OTCBB: NWWV), visit our websites at www.newave-inc.com, www.onlinesupplier.com, www.buydiscount.com and www.mysoftwaretutor.com. The Company's public financial information and filings can be viewed at www.sec.gov. Forward Looking Statements This release contains forward-looking statements, including, without limitation, statements concerning our business and possible or assumed future results of operations. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons including: our ability to continue as a going concern, adverse economic changes affecting markets we serve; competition in our markets and industry segments; our timing and the profitability of entering new markets; greater than expected costs, customer acceptance of our products and services or difficulties related to our integration of the businesses we may acquire; and other risks and uncertainties as may be detailed from time to time in our public announcements and SEC filings. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this document to conform these statements to actual results or to changes in our expectations, except as required by law. Contact: Michael Novielli Chairman NeWave, Inc. mnovielli@newave-inc.com ph (845)575-6770   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 Rally In Dow Continues The Dow Jones (DJI) closed above 11,584 yesterday to a new six-year closing high. In a report released Friday by the Department of Labor, the economy continues to pick up steam and add new jobs, with the unemployment rate remaining at 4.7%. This appears to be all the market needed to hear. The additional jobs came in much lower than the 200,000 economists were expecting, but gave Wall Street more confidence in the fact that the Federal Reserve may soon end, or at least pause its long series of rate hikes. The Dow closed up almost 140 points Friday and reached a high of 11,603 yesterday, only 120 points of its all time high of 11,723 set in January of 2000.   Clearly Canadian -- Hits Higher High Clearly Canadian (OTCBB: CCBEF) closed up again yesterday! CCBEF stock closed at $2.74 Monday, continuing its blistering pace upward. For 4 days in a row, and nine out of the last eleven trading days it has closed higher than the previous day. CCBEF is at its highest level since March 8, 2005 and up a whopping 271% from its September 6, 2005 low of $1.01. The long base between April and November of last year in the $1 to $2 range and another between November 2005 and March of this year in the $2 - $2.50 range provided and excellent launching pad for a prolonged up trend. Technical and fundamental analysis along with recent corporate restructuring point only one way...UP. CC President, Brent Lokash, issued a press release to shareholders Monday morning and is quoted as saying; "I believe that Clearly Canadian is poised to re-establish itself in the alternative beverage category. And, our timing could not be better. This high-growth market segment, with such names as Monster, Red Bull and Vitamin Water has broken out into a $14 billion dollar industry and all indications are for continued exponential growth." A vote of confidence no doubt for shareholders. Click here to view the press release in its entirety.   CEL-SCI CEO Issues Letter CEL-SCI Corp. (AMEX: CVM) CEO, Geert Kersten, issued a letter to the public Monday expressing his real concerns regarding bird flu and the flu we should all really be more concerned about, "The current bird flu virus is not the virus that we should fear. The one that we should fear is the 'new' and as of yet, undefined virus that will emerge when the bird flu virus and a human flu virus combine.", said Kersten, who also goes on to explain how the addition of the Company's CEL-1000 drug to the bird flu vaccine could very well create a more effective vaccine. Kersten ended his letter urging readers to talk to their congressman, senator and doctor about it. We're all for that. We don't need a worldwide epidemic on our hands. If CEL-1000 can assist in creating a more effective bird flu vaccine, then our representatives on good 'ole Capitol Hill have a responsibility to all of us to expedite the research process. Not only that, any continued positive developments on the subject will likely send the stock flying, and in our opinion, there's nothing wrong with that. Click here to view the press release in its entirety. Subscribe Information is power and timely information is profitable. 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Those affiliations and/or obligations are completely separate from TGR Group LLC, but the relationships as a whole should be viewed as a potential conflict of interest. Visit 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. TGR Group LLC has been paid a fee of $60,000 by NeWave for coverage of the company. In addition, one of the principles of TGR Group LLC is also a principle of MarketByte LLC. In a separate contractual relationship in 2004, MarketByte LLC was paid a fee of $25,000 in cash and 750,000 newly issued, restricted shares by NeWave for coverage of the company. The aforementioned shares are all currently eligible to be free trading. The term of MarketByte's obligation to NeWave has expired. 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