Dow Jones 10087.51 -191.24 7:42 am PST, April 17, 2005  NASDAQ 1908.15 -38.56 For info, visit access.smallcapnetwork.com S & P 500 1142.62 -19.43 Change your subscription status here Russell 2000 580.78 -11.16 VOLUME 05: ISSUE 30  Trading Alert: Stream - Like Buying Cable Stocks 20 Years Ago. US Cable penetration is now 67 percent or 80 million households. In 1981, that penetration was 28 percent. Revenue for cable operators in 1985 was less than $10 billion compared to $57 billion in 2004. Projections raise that number to $86 billion by 2008. The bad news is that you've likely missed the majority of that growth. Here's the chart: The good news is that we've unearthed what is, in our opinion, a comparable and compelling opportunity. Although the cable communications market in North America has matured, Europe --especially Central Europe-- has remained a laggard--good news for investors who want to gain exposure to that fast-growing international business sector.  Our pick to ride this wave--which we sincerely doubt will take anywhere near 20 years to catch up-- is Stream Communications (OTCBB: SCNWF) an acquisitive cable provider aggressively raising its subscriber base in Central Europe, specifically in one of the fastest growing and strongest economies in Central Europe, Poland.  For the reasons above and below as well as a constructive technical picture (chart, details below) we suggest investors accumulate Stream Communication shares for what we believe will be exceptional long-term growth. Only game in a very large town. Stream is the only North American and European market publicly traded cable Communications Company that is focused exclusively on the burgeoning markets and economies of Central Europe. Since it's inception in 2000, Stream has steadily added subscribers and plans to be the fifth largest cable operator in Poland by the end of 2005. Currently posting just under 60,000 subscribers, its current infrastructure could easily handle in access of 100,000 without any additional build-out.  In the south of Poland alone, with a population of 11.5 million, there are 3.2 million television homes. With approximately 800,000 total subscribers, the current penetration is 25 percent-- which, in percentage terms, is roughly where the US was in the early 1980's. The south is especially underserved--there is only a single cable provider--so this geographic focus by Stream should raise both its subscriber base and subsequent revenues, quickly. Stream is now the 8th largest cable company in Poland out of over 500 independent operators. The company realized early that consolidation was an excellent and profitable strategy. It can acquire subscribers by buying these small operators and has completed approximately 15 acquisitions as of April 2005. The latest is noted in Friday's release (below). Growth looks interesting, to say the least. Stream had annualized revenues of $4.2 million in 2004, which extends the company's consistent growth to five years. Further, in a recent report from Emergent Growth Analytics, revenue for fiscal 2005 should come in at just under $25 million. The report further projects that fiscal 2006 should see continued significant growth as revenues exceed $56 million. Stream has begun and continues to offer state-of-the-art Internet as well as data storage and VoIP services to businesses and homes in the region. Once again, the numbers are compelling as only 28 percent of Poland has Internet usage as compared to 60 percent in the EU. Poland's Internet penetration is expected to reach 50 percent by 2010 through out homes and businesses. And we suspect Stream will be a/the major player in that growth. The Stream chart looks very constructive. After a nice run last year, the shares pulled back perfectly to a .618 retracement and have been consolidating at that level. With that strength, the shares appear to have good room to run and retest the $1.14 high. As always, as good as the picture looks, a stop loss at 60-ish cents would likely be prudent for all or part of a position. Long-term the picture looks interesting. Since Central Europe was late to the Cable/Internet boom, the infrastructure is robust and has benefited from modern technology. What this means is that Stream can focus on building its brand and subscriber base without having to yard out virtually any money to upgrade the system. With this albatross in flight, the Company can stick to its business plan, which appears to be being executed quickly. Given the geography of the region and its personnel on the ground in Poland, Stream acquires operators close to its networks thereby keeping capital costs low and maintaining the seamless nature of its network. For investors, Stream is a standup growth story. Management is keenly aware of how, where and with whom to do business with in Poland as well as Central Europe. The team is led by President and CEO Stanislaw Lis who has extensive international financing experience and has been doing business in Poland since 1990. The quality of the operation becomes readily apparent as one looks over the Board of Directors which includes Robert Wussler, the President and CEO of Ted Turner Pictures and Documentaries. Mr. Wussler has extensive experience and has held the position of president of CBS Sports and the CBS Network as well as being the co-founder of a few companies you may have heard of--CNN, TNT and WTBS. As I said, a quality line-up. Only someone living in a cave wouldn't realize the growth potential and competitive nature of the Cable Communications sector. The rest of us who were either too young in the early 1980's or having too much fun to realize the import and pervasive growth of the technology, missed a significant opportunity. In our opinion, that opportunity may well have returned as the EU and especially Central Europe play catch up. The need for massive capital outlays are virtually gone, the cable brand, both for TV and Internet are commonplace, globally, so the challenge is to find and exploit those markets that are underserved.  Stream, with its extensive knowledge of the region, the business and the technology has matched the three together and has already proven that both the Company and the market are well positioned for significant growth.   PRESS RELEASE Stream Acquires Additional 1,400 Cable Subscribers Friday April 15, 4:00 pm ET  VANCOUVER, British Columbia, April 15 /PRNewswire-FirstCall/ -- Stream Communications Network and Media Inc. (OTC Bulletin Board: SCNWF - News) is pleased to announce it has entered into an agreement to purchase an additional 1,400 cable subscribers strategically located next to the Company's existing network in Southern Poland. Stream will issue 260,000 common shares of the Company in exchange for the completion of this transaction bringing its current number of revenue generating units (RGU's) to 58,500 throughout its network. With the addition of Stream's two most recent acquisitions, the Company is now the 8th largest Cable Communications network in Poland out of over 500 independent operators, and has increased its annualized revenues by US$ 500,000. About Stream Stream is a broadband cable company and offers Cable TV, high-speed Internet and VoIP services in Poland. With 58,500 subscribers currently, Stream is one of the principal consolidators of the Cable Communications sector and is a leading Cable TV operator and Internet provider in the densely populated markets of Southern Poland. Established in 2000, Stream has offices in Krakow and Vancouver. Safe harbor for Forward-Looking Statements: Except for statements of historical fact, the information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include general economic and business conditions, the ability to acquire and develop specific projects, the ability to fund operations and changes in consumer and business consumption habits and other factors over which Stream Communications Network and Media Inc. has little or no control. This release was issued through Major Newswire (http://www.majornewswire.com)   Source: Stream Communications Network and Media Inc.   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. 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