Dow Jones 11054.01 -49.54 10:27 am PDT, July 11, 2006 NASDAQ 2097.45 -19.48 For info, visit access.smallcapnetwork.com S & P 500 1261.13 -6.21 Change your subscription status here Russell 2000 701.39 -7.69 VOLUME 06: ISSUE 52 Execute Sports Makes a Big Splash in Wake Skate Market For weeks we've been discussing the progress Execute Sports (OTCBB: EXCS) has been making with their line of Academy-brand snowboards. In fact, just a couple of weeks ago we highlighted how sales of Academy snowboards in Europe had increased by 51% (year-to-date). And even in our initial profile of the company from March 24th, it was clear snowboards were what put the company on the map.  Well, none of that has changed. Academy snowboards are still going to be a key product offered by Execute. It's a good thing too...since their snowboards and sponsored teams are among the best in the world. And there's little doubt the company will continue to take more and more market share under the guidance of new CEO Todd Hahn. However, it's nice to finally have a reason to highlight another piece of the company's product line...water sports equipment. Plus, as you'll read in the press release below, Execute has entered into an agreement with Jet Pilot that looks like it could be a pretty nice win for both companies. But first.....    What's Wake Skating?  What's wake skating? Glad you asked. If you know what waterskiing is, then you have a fairly good idea of what wake skating is. However, wake skating is waterskiing taken to the extreme (which is precisely where the term 'extreme sports' came from). In wake skating, rather than two skis, a rider gets one board. The wake-boarder is deliberately using the boat's wake as a ramp, becoming airborne - and hopefully high enough - to execute a mid-air maneuver that could make stunt men squeamish. The more difficult and dangerous the trick is, the higher the points awarded.  Sounds crazy? Maybe, but guess what...Gen X-ers (and the Gen Y-ers) love it! They can't get enough of it. In fact, they love these sports so much, they spend more than $5 billion annually on extreme apparel, water equipment, and snow equipment. And that may be just the tip of the iceberg since the industry just keeps getting more popular each year. The 100 million Gen X-ers and Gen Y-ers have more than $170 billion in disposable income to spend each year. All of a sudden it seems a lot less crazy, doesn't it? There's some big money to be made by the company able to outfit those 100 million consumers with the same kind of equipment their favorite extreme athletes use, and Execute is more than able to do the job. As for how Execute fits into the world of extreme water sports, their key products are wetsuits, branded under Execute Sports' own name, and Kampus-branded wake skates and wakeboards. The Kampus brand is regarded as one of the best brands of boards in the industry. Don't forget about the apparel either - everybody needs a shirt and hat to keep from getting sunburned in between rides. Yep, it looks like Execute has these consumers covered (literally) every step of the way. And by the way, the average extreme sports consumer is fiercely loyal to a brand name. If you have a Kampus board, you also wear Kampus t-shirts.  Just for some perspective on the kind of opportunity Execute has, let's do a little math. Over the past twelve months, Execute's revenues totaled about $2 million. Of that $2 million, a large chunk of it was generated by snowboard sales. Last year, in the United States alone , water sports equipment (excluding boats) sales topped $24 million. So in the grand scheme of things, Execute doesn't own all that much of the water sports market...yet. That, however, is precisely why we love the opportunity. They're still a relatively small fish in a pretty big pond, but we expect that fish to keep growing at an exponential rate.    Distribution Is The Key  We're taking our cue about the expected growth in their water sports business from Execute's massive increase in snowboard sales. As we reported in late June, Execute's snowboard revenue from the European market had increased by more than 50% on a year-over-year basis. Plus, based on the acceleration of revenue growth, that kind of improvement isn't likely to stop soon. The strategy behind that growth was simple...build a superior product, and then partner with the right distributors.  Obviously Execute found the right distribution partner in Europe, and it seems they've learned from that success. The company intends to find similarly beneficial partners in the world of water sports, and for that matter, in any particular market. For instance, they've teamed up with Eagle Rider as an exclusive designer and manufacturer of motorcycle (Harley Davidsons, specifically) riding gear and apparel. Eagle Rider currently operates 35 units. A few weeks ago, Execute entered into a new partnership with Rincon Distribution. Rincon, just so you know, is a supplier to over 500 retailers.  Do you see where this is going? The partnership model works, as we've already seen. A number of doors have already been opened through strategic partnerships and getting the right distributors on board. That's why Execute wants to reproduce it as much as possible. Thus, today's good news...  Jet Pilot has partnered with Execute Sports to build a new wake skate and racing boot line. The new product line will highlight one of Execute's patent-pending technologies - a draining system allowing wet footwear to dry quickly. With the Jet Pilot venture now cemented, Execute's foothold in the $150 million water sports footwear market just got a lot stronger. It's exciting news, although not surprising at this point; Execute Sports has more than earned the new business. Knowing that nothing creates future success like a history of success, we have to wonder what new doors this partnership may open.  Needless to say, we like the company and its stock. The current price near 23 cents is a bargain compared to where it's been - it was trading at twice that amount just a few months ago. But the bargain aspect isn't even the tasty part of the opportunity. Take look at some of the recent news about Execute Sports. The story is very compelling. Once the story finally gets into the hands of the investing public, odds are that the news will spread like wildfire. When that happens, you can kiss that price of 23 cents goodbye - shares may be headed north in a hurry.  Here's the official release.    Execute Sports To Build Footwear Line For Jet Pilot  SAN DIEGO, July 11, 2006 (PRIMEZONE) -- Execute Sports, Inc. (OTC BB: EXCS.OB - News)announced today that it has entered into an agreement with Jet Pilot to build a wake skate and racing boot line, embedded with its patent-pending Kampus Drain System (KDS) technology.  Duane Pacha, product and brand manager at Execute Sports, noted that "our KDS embedded Kampus Wakeskate shoes are poised to become leading footwear program in the $150 million annual watersports footwear market. The Jet Pilot agreement is extremely positive for us, and further validates that our shoe construction and KDS technology are on the forefront of the market and we intend to build on this lead with new designs going forward."  Brian Jellig, Design & Marketing Director at Jet Pilot stated: "When we started designing our new Wakeskate and Watercraft shoe program, it just seemed natural to work something out with Kampus due to our already established relationships and history. The result is footwear products that utilize our collective design and production experience. The Jet Pilot footwear is clean, innovative, comfortable and designed to perform. All of us at Jet Pilot are really happy to have Kampus involved with our footwear program and we look forward to more innovative footwear in the future."  In addition to building the Jet Pilot line of wakeskate shoes and racing boots, Execute Sports is preparing a launch of the Kampus shoe line. "We are extremely excited to introduce the Kampus shoe line to other watersports markets including the personal water craft (PWC) market. Our shoes are performance-driven, having their genesis in the sport of wakeskating, and standing up to the rigorous demands that those athletes put on them, and we believe that will cross-over well into consumers and participants in other watersports markets.  About Execute Sports, Inc. Based in San Clemente, California, Execute Sports, Inc. develops performance products including wetsuits, vests, rash guards, snowboards, wake skates, bindings, bags and apparel for the action sports industry. The Company's brands include Execute Wetsuits, Academy Snowboards, Kampus Wakeskates and Kampus Shoes, Collective Development Bindings and Collective Development Bags. In addition, Execute has an exclusive worldwide license to design, produce and distribute EagleRider apparel through EagleRider's 35 franchises and through the Company's eCommerce site, http://www.eagleridergear.com. For more information, go to http://www.executesports.com and http://www.academysnowboards.com.  About Jet Pilot, Inc. Based in San Diego, CA and founded in 1986, Jet Pilot continues its leading tradition, producing the most progressive, innovative, technologically advanced, rider-inspired products for the Wake, Surf, MX and water sports markets. For more information on Jet Pilot's complete line-up of Team Riders, Clothing, Boardshorts, Rideshorts, Life Vests, Wetsuits and accessories visit us at www.jetpilot.com or call us at 1-800-JETPILOT  Certain statements in this press release are forward-looking as defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements include expectations regarding the ability of the company to continue its growth and the financial performance thereafter. These statements involve certain risks and uncertainties that may cause actual results to differ materially from expectations as of the date of this release. These risks include the ability to accomplish goals and strategies, anticipated revenue enhancements, general economic conditions and the level of consumer spending, and numerous other factors identified in the Company's Form 10-KSB and other filings with the Securities Exchange Commission.  Contact: Execute Sports  Todd M. Pitcher  (858) 518-1387  Todd.pitcher@executesports.com  Investor Relations:  John Bevilacqua  (877) 891-7018  jb@sundargroup.com   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 MIV Therapeutics News a Hit With Investors Well, it happened. The news about MIV Therapeutics' (OTCBB: MIVT) coated heart stent apparently started getting some traction, as shares are through the roof yesterday - up by more than 30%.  Yes, this is the same MIV Therapeutics we highlighted in last Thursday's edition...the same one that was up on big volume yesterday ...and the same one breaking above some key resistance levels. As we discussed then, investors just needed to hear the story. Now that they've heard it, it's clear the market wants to jump on board. All that was needed was a gentle push in the right direction.  Although we'd like to take credit, we really didn't do anything except report the news. MIV Therapeutics employees deserve any credit, since they're the ones who developed Hydroxyapatite (or 'HAp', for short). That's the coating for MIV's third-generation heart stent, and it's particularly important to all of us simply because it may be the only safe heart stent coating available for medical use. As you may recall from Thursday's review, the coatings currently used for heart stents are now known to cause other medical problems. HAp, however, doesn't appear to cause any of those typical complications.  The stock's big gain reflects the good news, but the gain isn't even the big deal (ok it's not the biggest deal). What we're impressed by is the move past May's peak of 78 cents, as well as the move past the 50-day and 100-day moving average lines. Nothing gathers more future investors than present gains, and with the size of the gain today - paired with all that resistance being broken - you can bet more and more interested buyers will be taking a look at MIVT    Clearly Canadian's Recent Dip Makes For a Fantastic Entry Point All stocks go through an ebb and flow process, although some more than others. That's not news to any of us. However, being able to predict the highs and lows of such a back-and-forth motion can make a world of difference in entries and exits.  Why does it matter now? Take a look at Clearly Canadian's (OTCBB: CCBEF) recent chart below. The recent 'ebb' has been the pullback from a high of $4.55 to last week's low of $3.25. The bigger 'flow', on the other hand, is the longer-term uptrend we've seen shares make since we first started covering the company in March. Given that the stock has already pushed back up to the current price of $3.65, it's pretty clear the bullish flow is back. Or to put it in painfully obvious terms...if you were waiting to buy on the dip, this is the dip you were waiting for.  What we like best about this particular entry point is the 25 cent gain we've made since closing at $3.37 on July 5th. It just adds a margin of safety, as shares already have the bullish momentum we like to see. Sure we may have left a little money on the table by not pin-pointing the exact bottom, but that's like trying to catch a falling knife - you just don't want to do it. Now with shares pointed higher again, the entry risk is minimized.  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. 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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 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://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 $30,000 and 300,000 newly issued restricted shares by Execute Sports for coverage of the company. In addition, one of the prinicipals of TGR Group purchased 100,000 shares of Execute Sports at a cost of $.25 per share prior to the public offering. The shares are now eligible to be free trading.That individual may choose to sell the shares at any time. This should be viewed as a potential conflict of interest. TGR Group LLC has been paid a fee of $30,000 and pledged 150,000 warrants with an exercise price of $2, currently convertible into restricted shares of Clearly Canadian, by Level III Research, for its coverage of Clearly Canadian. TGR Group LLC has been paid fee of $30,000 by MIV Therapeutics for coverage of the company. In addition, TGR Group LLC has been awarded 272,000 warrants with an exercise price of $.26 by Trilogy Capital Partners for coverage of MIV Therapeutics. All of the aforementioned coverage obligations have expired. MIV Therapeutics has paid TGR Group, LLC an additional $10,000 for the current coverage. 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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