Dow Jones 10405.11 -12.12 12:30 pm PST, January 24, 2005  NASDAQ 2017.13 -17.14 For info, visit access.smallcapnetwork.com S & P 500 1167.31 -0.56 Change your subscription status here Russell 2000 606.00 -5.08 VOLUME 05: ISSUE 6  Feature: Force Protection - Fighting Fit. As we have oft-mentioned, Force Protection (OTCBB: FRCP) is a smallcap company in the right sector at the right time. After the close Friday, the company announced (http://biz.yahoo.com/bw/050121/215496_1.html) a significant financing deal--roughly $16 million, as well as simplifying its share structure through preferred share conversions, elimination of anti-dilution provisions and a pending reverse 12 for 1 stock split. The company further intends to seek a national market listing in the first calendar quarter of 2005 once all those initiatives have been completed. For our assessment of the reverse split strategy and how we believe it positively affects Force Protection, a read of our January 12th piece would be appropriate. Recent daily trade volumes for the shares have been in the millions and, as we've said before, we'd like to see the price break the December highs to technically herald a run higher. We would continue to suggest accumulation at these levels and indeed anywhere under 30 cents. A stop-loss in the 19-21 cent range would be prudent. This is the smallcap market, after all. The company has also named a new interim CEO in the person of R. Scott Ervin, a very experienced corporate attorney with an extensive background in corporate governance. Mr. Ervin has been a director of FRCP for more than three years. The company continues the process of determining a permanent CEO. Once all the capital structure measures are implemented, the company, by our estimate, should have roughly 35-37 million shares outstanding. With the new share structure, including conversions, and the strong working capital base, the company will continue to move ahead; increasing its contract wins and enhancing production capabilities. As well, FRCP will continue to develop new vehicles to augment its already impressive product line. The cleaner, leaner company should well be of increased interest to institutional investors and analysts. Are there still risks to FRCP? Of course. Is Friday's announcement a large step in increasing the visibility and viability of the company for current and prospective shareholders? Undoubtedly. Over the past year, the company has garnered significant contracts and worked to position itself as the vehicle of choice to protect the troops from all manner of growing insurgent attacks. Not much else to report. The company is moving ahead both corporately and on the deal front. Risk-oriented investors would be wise to have long-term exposure to FRCP in the speculative end of a portfolio. Personally, I wish that was no need for the products and vehicles that FRCP sells. Realistically though, I'm sure that we all want to make certain that the troops who are in those areas have the best possible protection as the myriad dangers increase and intensify.  We believe that FRCP decisively addresses that important need and will see increased exposure and deal flow in the weeks, months and indeed, years ahead.   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 3525 Del Mar Heights Rd #334 San Diego, CA 92130   Unsubscribe Here 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 licensed investment professional 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. 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 of fee of $25,000 cash and 800,000 shares of newly issued, restricted stock by Force Protection for coverage of the company.  Additionally, Some of the companies featured in the SmallCap Digest Newsletter pay an ESP (Electronic Service Provider) fee to an affiliated Technology Company for electronic delivery of this newsletter and other web related technology services. Fees range from $3,000 to $5,000 per month.  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. From time to time TGR Group LLC sells shares in the open market it receives as compensation for coverage of client companies. Since the shares are received as compensation for services as previously disclosed, and not for investment purposes, the editors do not view the sale of the shares as contradictory to any advice delivered in the content. This should be viewed as a conflict of interest by shareholders or prospective shareholders of the client companies. The editor, members of the editor's family, and/or entities with  which the editor is affiliated aside from TGR Group LLC itself, 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 in the newsletter. The profiles, critiques, and other editorial content of the SmallCap Digest and SmallCapNetwork.net may contain statements that appear forward as it relates 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.