Dow Jones 9,554.37 -  53.63 1:30 am EST, Tues., November 13, 2001  NASDAQ 1,840.13 + 11.65 For info, visit access.smallcapnetwork.com.  S & P 500 1,118.33  -  1.98 To be removed, please click here.  Russell 2000    440.48 +  2.38 VOLUME: 01 ISSUE: 13    Dear SmallCap Network Members: The SmallCap Digest is updating our SHORT TERM TRADING ALERT on Cross Media Marketing (AMEX: XMM.) We are increasing our BUY LIMIT on XMM shares from $7.25 to $8.25 based on results of the Company's conference call Monday at 4:30 pm. EST. We are also revising our TRADING TARGET to $12.00. Complete revised XMM trading parameters follow this earnings update.  We're pleased to provide Members with this exclusive follow-up highlighting the discussion from yesterday's Conference Call... Cross Media Marketing third quarter revenue increased 71% to $25.9 million compared to $15.2 million for the same quarter last year. Third quarter net income was $2.3 million, resulting in earnings per diluted share of $0.26, compared to a net loss of $5.0 million or $0.92 loss per share for the year ago quarter. Third quarter revenue increased 10% or $2.3 million and net income increased 30% or $0.5 million on a sequential basis from the second quarter. For nine months of fiscal 2001, revenue increased 64% to $69.2 million compared to $42.2 million in the prior year. Net income for nine months of fiscal 2001 increased to $3.9 million or $0.46 per diluted share. This compares to a loss of $37.4 million or $8.21 loss per share for the year ago quarter. Net income and EBITDA through nine months of fiscal 2001 include a one time non recurring, non cash charge of approximately $1.0 million as a special dividend in connection with the retirement of the Company's outstanding preferred shares. EBITDA increased 21% or $0.7 million over the second quarter to $4.0 million and totaled $9.4 million for the first nine months of fiscal 2001. More remarkably, from the end of Fiscal 2000 through the end of the third quarter: Total assets grew from $44 million to $59 million, up 30.6%! Working capital grew from $5 million to $17 million, up 240%! Stockholders equity grew from $9.6 million to $23 million, up 140%! Projected return on equity for 2001 should come in at 73%!! In July, the Company adopted more conservative accounting policies in regards to revenue recognition which reduced their annual revenue projections for 2001 by about $8 million. The Company reiterated it still expects to hit their revenue target of $98-$110 million this year. The Company reiterated guidance of $9-$10 million in net income and EBITDA of $15-$17.8 million for the current year. The completion of the LifeMinders acquisition added 20 million members, $20 million in cash, a very strong balance sheet and the most sophisticated and advanced technology structure in place to reach this significant and substantial new audience. XMM is currently selling at less than 7x 2002 estimates, with net income projected to grow by about 50% in 2002 versus the current year. Margins have increased very consistently quarter over quarter, making the Company even more attractive to institutional investors as performance continues to be demonstrated. To review the full press release for these third quarter results, please click here.  BASED ON THESE PHENOMENAL RESULTS WE ARE REVISING OUR TRADING PARAMETERS FOR XMM: BUY LIMIT:   $ 8.25 (<8x 2002 earnings forecast) STOP:           RAISED TO $ 7.00 ON THE CLOSE (-15%) TARGET:       RAISED TO $12.00 TIMING:         50-75 DAYS Technically, XMM shares are close to breaking out of their recent trading range and thus could also be vulnerable to a brief pullback. We would use any weakness to accumulate XMM shares. Any pullback beneath $7.00 COULD be great for long term investors, but a close at or below this price would nulify our short term trade. Short term traders who missed our first call and like XMM fundamentals, should consider taking a PARTIAL POSITION up to our revised buy limit and hope for a pullback. Look forward to updates as market conditions warrant. For more information on XMM, please click here. Members can also follow the prior link to a replay of the conference call by clicking through to the INVESTOR RELATIONS page.    If you'd like to change your address enter a new address or delete an old one, please click 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 registered investment advisor or broker dealer. 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