Dow Jones 12612.13 +59.17 9:57 am PDT, April 14, 2007 NASDAQ 2491.94 +11.62 For info, visit access.smallcapnetwork.com S & P 500 1452.85 +5.05 Change your subscription status here Russell 2000 819.38 +4.33 VOLUME 07: ISSUE 39 Phinder Raises The Revenue Roof  You gotta' love a good story that just keeps getting better - especially when it's the story behind a stock many of you may own (or perhaps should own). The icing on the cake is how the very best part of the saga may still be in front of us.  In the meantime, we think investors have the potential to make some very good money. In fact, Phinder Technologies' (OTCBB: PHDT) target level of $ 1.25 - a mere 400% above where shares were trading when we first mentioned it on Wednesday morning - may be a heck of a lot closer than you think. And frankly, based on the new number-crunching, we think we're being a little conservative with our target.  Anyway, check out the latest chapter - Phinder (pronounced 'finder') just confirmed they've received credit insurance on up to $10,000,000 worth of accounts receivable. In English, that means they can now carry up to $10 million worth of outstanding invoices at a time. Just to clarify, we're not saying there's a $10 million cap on their total billing in a year...this means they can have up to $10 million in accounts receivable at a time.  A shareholder should care for one very simple reason....this will allow the company to start doing as much business as they want with the major (tier one) telecom carriers, who need connection providers like Phinder. Considering the company was on track to do a little over $10 million in all of their last fiscal year, the credit insurance basically raised the revenue ceiling about 1000%. Read on to see how.    Breaking Into The Business A little technical explanation may help investors truly grasp the upside potential. Here's how things work in the world of telecom....  The giant phone companies you write a check to every month? Though the major carriers appear to be a one-stop shop for all telephone needs, they rarely do everything themselves. All the Verizons, AT&Ts, and Qwests out there are in many ways a network of smaller companies all working together.  Enter Phinder. From our first look on Wednesday, we already know Phinder is able to originate international connections for the major carrier's customers - they've been driving telecom (VOIP) revenue for the last several months. Based on the growth we've already seen from the venture (they more than tripled their telecom revenue in the last quarter we have data from), we became convinced this company and its investors were looking at a huge opportunity in the Latin American connection market.  Why? Because the demand for connections to Central and South America has exploded in the wake of economic growth and a population shift. Plus, the introduction of lower-cost VOIP solutions (in regions where it's been uncommon to even have immediate access to a phone) has created what is mostly an untapped market. Just as salient - billions of dollars are spent on telecom service every year. In fact, all the North American carriers combined pulled in $403 billion worth of revenue in 2006. If Phinder can carve out even just a fraction of those per-minute international calling charges, you're still looking at what we'd consider a mega-opportunity. A modest 1/10th of only 1% of that figure would still be worth more than $400 million annually.  Like we said on Wednesday, Phinder being in the right place at the right time could be a very good thing for shareholders.    Max Capacity Now, we had to say all of that so this would make sense......  Your phone company doesn't bill you until the end of the month, and doesn't expect to receive a payment until up to 30 days after you get the bill. And, for a multi-billion dollar company, it's really no sweat for them to wait 30 days to collect your $50 or so.  On the flipside, these big tier one companies expect similar terms on their own debt. They typically don't send a check to their service or connection providers until 30 days after the end of the billing cycle. When you're talking about millions of dollars, all of a sudden it's not as easy to be as gracious with a "buy now/pay later" approach - especially for a smaller originator like Phinder.  See where this is going? It's not like the smaller connection providers don't want to do more business - a lot of them just can't afford to float a month's worth of credit to a big company. Aside from the lack of cash flow, that kind of risk may be debilitating for a smaller originator.  Fear not telecom fans - credit insurance to the rescue! The credit insurance Phinder now has essentially removes the risk of providing the kind of flexible payment terms most tier one carriers expect. Or in simple terms, Phinder can now play ball with the big boys....something they were capable of doing infrastructure-wise, but perhaps not from a financial risk perspective.  But that's not even the good part - at least not in our eyes. What we're excited about is the competitive edge this gives Phinder.  The business opportunity is indeed out there...the major carriers need providers that CAN and WILL provide international connections. Though there are willing competitors in the space, the kinds of dollars behind the size of these deals means many of them just aren't capable. With a virtual blink of an eye, Phinder has been ushered up to the front of the line. We think its investors will be in tow, figuratively speaking.    A Second Look At Our Target When we first looked at likely valuations for Phinder, we said annual revenues of $30 million spread across those 70 million I&O shares could make them worth $1.25 each - or 400% higher than where they were at the time. The basis for the projection was a price/sales ratio of about 3.0. And yes, between the numbers we've seen and our conversations with management, we didn't think a potential double (more, actually) in sales was out of line.  But now....well, now Phinder is capable of maintaining up to $10 worth of indebtedness at a time. With an average billing cycle of 30 days, the company can use the $10 million credit capacity about 12 cycles per year. As a result, they now have the potential to annually issue up to $120 million worth of invoices.  In retrospect, our first revenue guess of $30 million - which seemed aggressive at the time - could be achieved by only tapping into 25% of the company's billing capacity. Seems low. Even at only 50% capacity, sales could reach $60 million. At that mark, the price/sales model (assuming 3.0 is still the norm) could mean shares would be worth more than $2.50....almost 1000% higher than the levels we saw in the middle of last week. Kinda' makes you think.  So are we raising the target now that Phinder has raised their revenue roof? Not yet, though we reserve the right to. The next step in the process will be seeing the company win some business with a major carrier or two, which are multi-million dollar opportunities. Once we see a couple of those under Phinder's belt, then it may be worth discussing a more aggressive expectation.  In the meantime, consider this a reiteration of our strong opinion on PHDT. Yesterday's announcement is huge, even if a little explanation was required. We feel this stock has the potential to be an enormous winner, and so far the company has backed up the notion with progress towards that end. Aggressive investors - if you like the idea as much as we like the idea, then just be aware we don't see these low entry levels staying available for too much longer.    Phinder Finalizes Credit Insurance  MIAMI, April 13 / Zupintra Communications Inc. (Zupintra) a wholly owned subsidiary of Phinder Technologies Inc. (OTCBB: PHDT), is pleased to announce that it has finalized the credit insurance related to the $10,000,000 accounts receivable (A/R) financing as outlined in the Company's March 28th, 2007 press release.  "Closing the insurance was the last step in completing all the requirements necessary to fully utilize the A/R line. Zupintra is now in a very strong position to negotiate favorable contracts with international wholesale carriers," stated Lex van Arem, CEO of Phinder Technologies Inc.  The insurance covers over 25 countries, including but not limited to India, England, France, Italy, the Netherlands, Canada and the USA.  Zupintra will now be able to offer their services to tier 1 telecommunication companies. These companies have significant international voice traffic needs, representing a substantial business opportunity for Zupintra. Since Zupintra will now be able to finance up to $10 million dollars of sales per billing cycle, based on a 30 day cycle it is now in the position to fund up to $120,000,000 (one hundred and twenty million dollars) in annual revenue.  Phinder Technologies' core business runs through its wholly owned subsidiary, Zupintra Communications Inc. Zupintra is a facilities based wholesaler of international voice traffic within the carrier to carrier network. As a wholesale VoIP provider, Zupintra Communications Inc. signs both origination and termination contracts with next generation carriers and profits from negotiated rates.  FRANKFURT - WKN #: A0DQU5  In compliance with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, PHDT notes that statements contained in this announcement that are not historical facts may be forward-looking statements that are subject to a variety of risks and uncertainties. Accordingly, PHDT wishes to caution readers of this announcement that its future actual results may differ materially from those that any forward-looking statements may imply. There is no assurance the above-described events will be completed. There can be no assurance of the ability of the company to achieve sales goals, obtain contracts or financing, consummate acquisitions or achieve profitability in the future. The above and additional factors are discussed in detail in the company's filings with the U.S. Securities and Exchange Commission. These may be viewed at www.sec.gov and many other Web sites without charge.  Source: Phinder Technologies Inc.   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 Challenger/Sugar Sands Extends Its Reach  The march continues for the recently-revamped Challenger Powerboats (OTCBB: CPWB). In the fall of least year we learned the old Xtreme Companies would be re-named 'Challenger Powerboats', reflecting the decision to focus exclusively on the performance boat line using the same moniker. And early this year, the acquisition of IMAR added the Sugar Sands and Gekko lines to the company's mix.  Since then, we've seen tremendous success from the new Challenger, with more evidence coming earlier this week.  We don't have Q4's results yet. However, we're ball-parking about a million or so in revenue for the last three months of last year. We also saw a lot of new sales come through in Q1 of this year. In fact, here's our tally.......  2/22 - $330K in Challenger orders 3/1 - $120K in Gekko orders 3/6 - $725K in Sugar Sands orders 4/10 - $450K in Sugar Sands orders That's at least $1.1 million in Q1 sales on top of our Q4 estimate of $1 million. The recent order will go into Q2's revenue total. On top of that, four more Sugar Sands dealers were added recently, further widening the Challenger net. All in all, we still see a company making good progress post-paradigm shift.  In our view, despite getting sold off in a big way yesterday, the stock has a huge amount of upside potential. We feel our edge is knowing and understanding the story behind the story, which the rest of the market may not yet. But once they do, don't be surprised to see CPWB run.    Clearly Canadian Invades the West Coast  No, not literally.....but yes, figuratively. Clearly Canadian (OTCBB: CCBEF), as part of their revitalized distribution plan, has brought two California distributors into the fold. Saccani Distributing will cover the northern half of the state, while Valley Wide Beverage Company will cover the southern half.  This is a big deal. California, aside from being one of the most highly-populated states, is also a big 'better for you market'. We think these two major distributors will be able to capitalize on the best of both of those realities, reaping some nice revenues for Clearly.  And by the way, we haven't looked at CCBEF much recently, as a wave of big news from several of our companies has washed over the site. However, we haven't forgotten the potential here. We still think Clearly Canadian has the potential to be an enormous winner over the next few months, as the company continues to execute its growth plan.  For more on the new California distributors, click here.  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. 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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 paid a fee of $30,000 cash and 1,000,000 shares of newly issued restricted stock by Phinder Technologies, Inc. for coverage of the Company.  TGR Group LLC has been paid a fee of $25,000 cash and 500,000 shares of newly issued restricted stock directly by Challenger Powerboats for coverage. The aforementioned shares have become free trading under SEC Rule 144. 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