Dow Jones 11419.89 -8.88 9:20 pm PDT, May 16, 2006 NASDAQ 2229.13 -9.39 For info, visit access.smallcapnetwork.com S & P 500 1292.08 -2.42 Change your subscription status here Russell 2000 737.47 -0.17 VOLUME 06: ISSUE 37 Early Detection of the Stock We started following BioCurex (BOCX.PK) back in October of '03 at a mere $.17 cents when Celgene (NASDAQ: CELG) and Genentech (NASDAQ: DNA), two of the most prolific names in biotech today, were hovering around $10 and $40 respectively. Although all three of these biotechs have been big winners no doubt, can you guess which of the three have yielded the highest returns to date? Celgene has quadrupled, Genentech has doubled and yes, BioCurex has appreciated an astounding five times over. However, this could be just the beginning of what may prove one of the biggest cancer detection breakthroughs in medical history. The fact that BioCurex is not yet a common biotech name amongst the herd also makes it safe to assume that there still exists significant upside potential in the stock. Case in point. In 1991, most had never heard of Abbott Labs (NYSE: ABT). If you had, then you are among the minority of savvy due diligent investors always working to uncover the next homerun micro or small cap stock. We welcome you to the club. At the time, Abbott had just developed the first automated PSA test for use on the IMx® System. The technology helped propel Abbott into the biotech limelight further solidifying the brilliant investment decision made by those pioneer investors who were willing to take a shot early on in the Company's quest for elite NYSE status. The Company has since become a leader in cancer diagnostics. Speaking of Abbott, some of you may remember back in March of last year when Abbott Labs and BioCurex announced they had entered into a licensing agreement for BioCurex's RECAF™ material and technology. Needless to say, the stock went nuts. Do you think Abbott sees something here? Hmmm... I think it's a given that more often than not, micro and small caps take time to develop, sometimes years. But, if you have the patience and can stomach the roller coaster ride at times, it is extremely rewarding to know you've outperformed your peers and expectations. BioCurex is no exception.   Early Detection of Cancer Today, after the close, BioCurex announced that its RECAF™ cancer test detects initial stages of prostate cancer with 75% sensitivity and 100% specificity when compared to healthy individuals; and 68% sensitivity with 97% specificity when compared to men with benign prostate conditions (release below). Impressive to say the least when compared to the PSA test, which is currently the standard screening method for prostate cancer. We believe its ability to detect prostate cancer at such early stages holds enormous growth potential for the Company. Dr. Moro, Biocurex CEO and founder of RECAF™ stated: " Routine complete checkups are currently performed once per year. They are expensive and inconvenient. On the other hand, a RECAF™ blood test done once every three to six months would exonerate the immense majority of those tested as normal. Yet, it would still be able to pick up cancers shortly after they arise and not a year later. This could save the medical system a great deal of money and would be easily justified given the high mortality rate of cancer. The significance of early detection to the individual patient is vital. A test - such as RECAF™ - that can detect different types of cancer at early stages (as announced recently for breast cancer) could be used as a low cost routine exam to detect cancer in general. This would then allow for treatment of early stage cancers, which are the most curable." For those laymen, including myself who should never step foot in a biotech lab other than to observe, this means BioCurex's RECAF™ may very well become the next generation of cancer detection, as its potential for accurately detecting various forms of cancer in its infancy appears more than promising. Based on recent positive news developments, we think BioCurex may be turning the corner again, therefore, we strongly suggest accumulation of the stock at current price levels.   Early Detection of a Trading Opportunity Technically, shares of BioCurex appear ripe for a run. Shown in this monthly chart, the stock seems to be waking up once again on better than average volume closing out April with a seven month high. As many of our long-term readers know, when this stock gets rolling, watch out. Currently trading at just over $1.00, the stock has traded as high as $3.89 a share over the last few years. If you prefer to trade vs. invest, then you know it's all about price action and momentum. It appears BioCurex has momentum yet again. If shares of BioCurex can trade above its April high of $1.33, it would be no surprise to see it make a move to the one-year 5/8-retracement level pegged at $1.70. A nifty 62% gain from current levels. Most would consider that a good year. If it can get there, we'll take another hard look at its trading prospects. For now, 62% is the goal. Like trading any small stocks, be nimble and be quick. A stop loss of $.85 cents may be prudent as you just never know what's going to happen when trading the volatile world of small caps. Regardless, whether you choose to trade the short-term or invest in the long run, owning some shares of BioCurex makes perfect sense to us, especially when the masses have no idea who they are.   Prostate Cancer Detected Very Early With RECAF Blood Test  RICHMOND, British Columbia, May 11, 2006. -- BioCurex Inc. (BOCX.PK - News) announced today that its RECAF cancer test detects initial stages of prostate cancer with 75% sensitivity and 100% specificity when compared to healthy individuals; and 68% sensitivity with 97% specificity when compared to men with benign prostate conditions.  Sensitivity is the ability of a test to detect existing cancers (if all patients who have a cancer test positive = 100% sensitivity).  Specificity represents how well the test avoids false positives (no false positives = 100% specificity).  Cancer patients vs. normal individuals:    STAGE*  SENSITIVITY  SPECIFICITY  CANCER SAMPLES  Early (I+II or A+B)  75%  100%  84  III (C)  85%  100%  20  IV (D)  86%  100%  28  Cancer patients vs. patients with benign prostate conditions:    STAGE*  SENSITIVITY  SPECIFICITY  CANCER SAMPLES  Early (I+II or A+B)  68%  97%  84  III (C)  80%  97%  20  IV (D)  68%  97%  28  Dr. Moro, CEO, stated: "These results complement those previously announced for breast cancer and they strongly suggest that the RECAF blood test could detect early stages of all the major cancer types. We have reported on the ability of RECAF to detect cancers of many tissue types using samples which grouped early and late stage cancers. The present study further differentiates the stage of the cancer in comparison to normal and benign prostatic growths.  So far, in all of our studies on different cancers, we have compared the average amount of RECAF in the blood of different groups of individuals (e.g. normal donors, patients with benign tumors, or cancer patients), but the normal amount of RECAF - or any other protein in blood - varies from one individual to another. Therefore, a range of values is used to determine if a person has a cancer. This means that the RECAF value we use to determine if a person has cancer must necessarily be high in order to avoid informing a healthy individual that he has cancer, when he may just be at the upper end of the RECAF normal spectrum. But, if we did sequential blood tests on each person and assuming their RECAF value is rather constant over time; then a small change in the level of circulating RECAF would detect cancer at the earliest stages. We do not know yet if the normal RECAF concentration is constant enough to make this personalization possible. However, if it was consistent, this suggested approach might prove to be a winning strategy in the fight against cancer. We could then have an exquisitely sensitive tool to detect many types of cancer.  Routine complete checkups are currently performed once per year. They are expensive and inconvenient. On the other hand, a RECAF blood test done once every three to six months would exonerate the immense majority of those tested as normal. Yet, it would still be able to pick up cancers shortly after they arise and not a year later. This could save the medical system a great deal of money and would be easily justified given the high mortality rate of cancer. The significance of early detection to the individual patient is vital."  A test - such as RECAF - that can detect different types of cancer at early stages (as announced recently for breast cancer) could be used as a low cost routine exam to detect cancer in general. This would then allow for treatment of early stage cancers which are the most curable. The Company's success in obtaining early diagnosis with excellent discrimination between cancer and benign disease using RECAF is clearly an advantage in comparison to using PSA - the standard screening method for prostate cancer. Of men with elevated PSA, only 30% are found to have prostate cancer after biopsy*** and the biopsy only samples a portion of the prostate and does not indicate whether there might be cancer in adjacent cells that were not biopsied. The table below shows the curability of different stages of prostate cancer: Prostate Cancer Stage Curability**  Stage I (or A) 87% Stage II (or B) 81% Stage III (or C) 64% Stage IV (or D) 30%  About BioCurex:  BioCurex, Inc. is a biotechnology company that is developing products based on patented/proprietary technology in the areas of cancer diagnosis, imaging and therapy. The technology identifies a cancer marker known as RECAF tm, which is found on malignant cells from a variety of cancer types but is absent in most normal or benign cells.  BioCurex has signed a licensing agreement with Abbott Laboratories for BioCurex's RECAF TM Cancer technology as outlined in a joint press release dated March 29, 2005. The release noted that the cancer marker RECAF TM has emerged as a potential biomarker that may be useful in the development of new cancer diagnostics tests. Preliminary studies from the investigators at BioCurex have reported a high level of clinical sensitivity and specificity for RECAF in many of the most common cancers, including prostate, breast, colorectal, lung and others. To read more about the Company, please visit the News section in our web site (www.biocurex.com). Note: The Company has not authorized the release of this information in any form that contravenes the Communication Act and will not be responsible for unsolicited massive distribution of this material by e-mail or facsimile by unauthorized parties. Statements in this press release, which are not historical facts, are "forward-looking statements'' within the meaning given to that term in the Private Securities Litigation Reform Act of 1995. The Company intends that such forward-looking statements be subject to the safe harbors created thereby. Since these statements involve risks and uncertainties and are subject to change at any time, the Company's actual results could differ materially from expected results.  Contact : Ricardo Moro BioCurex, Inc. Tel: (604) 207-9150 * Prostate cancer staging: Stage I (sometimes referred to as stage A): Tumor cells are found in less than 5 percent of prostate tissue removed, and the cells are not very aggressive in nature. Stage II: (sometimes referred to as stage B): Tumor cells are found in less than 5 percent of prostate tissue removed, and the cells are more aggressive in nature or the tumor is larger in size, but is confined to the prostate gland Stage III: (sometimes referred to as stage C): The tumor has grown through the capsule which surrounds the prostate gland, and may involve seminal vesicles (tubes that carry sperm). Stage IV: (sometimes referred to as stage D1 or D2): The tumor has spread to other structures beyond the seminal vesicles to any other organ or structure. Source: University of Virginia Also see: Source ** CA Cancer J. Clin. 1993;43;83-91. C. Mettlin, G. W. Jones and G. P. Murphy. Cancer patient care evaluation studies of the American College of Surgeons Commission on Trends in prostate cancer care in the United States, 1974-1990. *** Urology. 2000 Sep 1;56(3):418-22. Finne P, Finne R, Auvinen A, Juusela H, Aro J, Maattanen L, Hakama M, Rannikko S, Tammela TL, Stenman U. Predicting the outcome of prostate biopsy in screen-positive men by a multilayer perceptron network.   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 Tech Tip - Stochastic Indicator You may have noticed our recent introduction of the stochastic indicator in our May 9th edition. We received a few inquiries regarding this, so by popular demand, here is a bit of info on how it can be used effectively to identify an oversold market. The stochastic oscillator is a momentum indicator. It is plotted on a scale from 0 to 100 and indicates buying and selling pressure. A stock or market is considered in oversold territory when the stochastic indicator is below the 20 level, and considered overbought when above 80. There are three common signals given by stochastic. The most commonly used is the cross over. In simple terms, when the fast line crosses above or below the slow line, a signal is generated. A second type of signal is when the oscillator moves below the 20 line or above the 80 line and then crosses back above/below. A third type of signal, and the most reliable, is stochastic divergence. Stochastic divergence occurs when the stock price makes a new high or low, but is not confirmed by the indicator. When you see all three signals trigger simultaneously, you're often looking at a high percentage probability trade. Now let's apply it practically. Looking at this daily chart of the Russell 2000, it becomes quite clear when stochastic is screaming buy or sell. We've noted the buy opportunities with yellow arrows over the last four months where stochastic has shown us extremely oversold conditions, thus creating a ripe buying opportunity for the short-term. More importantly, look carefully at the first arrow and circle back in the beginning of the year, we have bullish divergence revealing itself as the Russell broke a new low, but stochastic did not confirm a new low, hence the fierce rally following this signal. Many savvy traders saw the same thing in early January and acted on it.   Oil Getting Slick Again Take what you just learned and apply it to this daily chart of LS Crude; one can make the argument that oil is ready to rally once again, as it has pulled back to its 3/8-retracement level and recently put in a short-term double bottom. Additionally, by looking at the stochastic oscillator, it appears oil may be a bit oversold in the short-term and due for a tradable rally to the upside in coming days. Since volatility in the price of oil appears to be the theme in coming months, we anticipate some decent trading opportunities in oil related stocks and sectors. It's also important for us to note, we see no major long-term sell signal in the price of oil yet. However, oil no longer appears to be driving the markets now that inflation and interest rate fears have taken center stage. Regardless, it's definitely not good for summer vacationers looking to sight see the country in their brand new SUVs. Hurry up with Ethanol already. 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 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 $25,000 and one million newly issued restricted shares by Biocurex for coverage of the company. Under SEC Rule 144, all one million issued restricted shares are now eligible for sale into the public market. TGR Group has submitted the appropriate filings to sell the shares. In addition, on March 22, 2005, TGR entered into an extended agreement with Biocurex for a fee of 25,000 newly issued restricted shares. 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. 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