Dow Jones 9925.25 +13.56  5:05 pm EST, Sat., June 1, 2002  NASDAQ 1615.73 -16.19  For info, visit access.smallcapnetwork.com .  S & P 500 1067.14 +2.48  To be removed, please click here .  Russell 2000   487.47 -0.36 VOLUME 02: ISSUE 39 SmallCap Digest Weekend Edition: An In Depth Look At eMobile Data When we first profiled eMobile Data (EMOKF) it was truly exciting to find a company that had the road paved for success.  The strategic investor and partner in Itron (ITRI) was a can't miss indication that this little software company was about to find itself in the spotlight.  It is not often that a $500 million dollar company with over $225 million in annual revenues takes an interest in a company about 2% its size. It made sense that at some juncture Itron would make a play for eMobile but we had no idea it would be almost immediately after our profile was released.  What surprised us even more was that the offer was less than the market value of the company at the time when the offer was made. As it stands. Itron has offered $6.2 million dollars or $0.29 cents per share to acquire eMobile.  However, the letter of intent states that the exercise of options would increase the number of shares outstanding but would not reflect in the offer price.  This all but assures investors will get less than $0.29 per share. Currently, eMobile Data is halted for trading on the Canadian Venture Exchange but is not halted in the U.S. market.  This has caused some confusion but here is what has transpired.  Minority shareholders are not happy with Itron's offer and would like eMobile to decline the offer outright.  The other alternative would be for Itron to sweeten the pot.  Either way, under the regulations of the Canadian Venture Exchange the company's stock must be halted as the minority shareholders and the company find some resolution.  However, the U.S. has a different set of rules and thus the stock is allowed to trade despite the shares being halted in Canada. So the big question is what now?  In our May 15 edition we laid out three possible scenarios: Scenario One: The offer is accepted by shareholders and the deal goes through. Scenario Two: The offer is rejected by the shareholders and no deal is done.  Subsequently the two companies will continue to move forward with obtaining more traction for Service-Link with the over 2,000 clients that Itron currently has. Scenario Three: The initial offer is rejected but the deal eventually goes through because Itron sweetens the offer. Scenarios two and three would be very beneficial for current owners of eMobile Data.  Despite this distraction the company is executing on the business side.  Just this week the company released results for the quarter ending March 31st.  The corporate performance was outstanding with revenues coming in at $536,000 compared to just $57,000 for the same period in 2001.  That is an increase of over 840%. Business is booming but losses are also declining.  For the quarter, losses declined to $306,000 versus $598,000 in the same quarter of 2001, that is a decline of over 40%.  In addition, eMobile received an advance of $500,000 on future royalty payments from Itron.  This payment is not included in the quarterly revenue of $536,000.  For the quarter ending March 31st, eMobile Data had $1.13 million dollars in the bank.  The company is also on track to beat revenue estimates for 2002. There is even a chance that eMobile could breakeven in Q4 of this year and maybe reach profitability  This means that with the money in the bank and the business coming in, eMobile is not strapped for cash.  Thus if either scenario two or scenario three occurs owners of the company's stock at current prices will stand to gain considerably as eMobile continues to execute. With the Itron situation still unclear there is very little activity in the stock as investors await the outcome of meetings between the two companies and minority shareholders, who we know are opposed to the purchase price. One thing is certain and that is if you sell at the current bid prices you will have a very tough time buying it back for the same price. We currently have a wait and see approach because it is almost impossible to buy the stock at fair prices although some market makers have been occasionally offering the stock at $0.25 per share which is under the current buyout price.  If readers are able to purchase eMobile at $0.25 per share that would allow for the potential to reap tremendous gains if scenarios two or three occur.  The SmallCap Digest does not feel that the current Itron offer will be accepted in its current form.  What has occurred with eMobile Data is very unusual.  We expect the company's stock to be halted in Canada until late next week when more information is released about the Itron offer. We will be monitoring the situation and informing our readers about eMobile as things happen.   D I S C L A I M E R : The SmallCap Digest is an independent electronic publication committed to providing our readers with factual information on selected  publicly traded companies. SmallCap Digest is not a registered investment advisor or broker-dealer. All companies are chosen on the basis of certain financial analysis and other pertinent criteria with a view toward  maximizing the upside potential for investors while minimizing the downside risk, whenever possible.  Moreover, as detailed below, this publication accepts compensation from third party consultants and/or companies which it features for the publication and circulation of the SmallCap Digest or representation on SmallCapNetwork.net.  Likewise, this newsletter is owned by TGR, LLC.  To the degrees enumerated herein,  this newsletter should not be regarded as an independent publication.  Disclaimer:$subst('Recip.userid')   Click Here to view our compensation on every company we have ever covered, or visit the following web address:  http://access.smallcapnetwork.com/compensation_disclosure.html for our full compensation disclosure and http://access.smallcapnetwork.com/short_term_alerts.html for Trading Alerts compensation and disclosure.   TGR Group LLC has been paid a fee of $50,000 in cash, 250,000 free trading shares, and 250,000 options with an exercise price of $.25 by Largo Flight LTD for publishing on eMobile Data for a period of one year. 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