Dow Jones 11235.47 -39.06 6:14 am PST, March 22, 2006  NASDAQ 2294.23 -19.88 For info, visit access.smallcapnetwork.com S & P 500 1297.23 -7.85 Change your subscription status here Russell 2000 736.10 -9.52 VOLUME 06: ISSUE 23  Ride the NeWave. Online Sales Sector Soaring. Investors should focus on eCommerce firm NeWave Inc (OTCBB: NWWV), which we feel has excellent potential for significant trading profits--both short and long-term-- given the fundamental and technical details. Couple our opinion with the fact that the shares are currently trading at just under 20-cents, and the case for accumulation by risk-oriented investors deepens. Why? Well for one thing, the FY2005 record revenues of $7.34 million announced this morning (release below) are above NeWave's current market cap of around $7 million. With that low and compelling a price to sales number, the case for a share price rise gains even more traction.  While those numbers alone would normally be enough to move most smallcap stocks higher, read on, as we feel that there are several more and substantive reasons to own this name, especially at this depressed share price level. California-based NeWave, founded in 2003, is one of those few unique investment stories that took the best of the Internet's lessons from the post bubble carnage and effectively turned that knowledge into a solid and fast growing business.  In our opinion, with the shares trading at around 20 cents and the Company posting extremely good FY2005 numbers --and prospects for very impressive 2006 growth-- the stock represents a superior opportunity for risk-oriented investors. Accumulation of the shares is strongly suggested. To put it directly, NeWave's stock price has been hammered. That said, we feel that this weekly chart exhibits a classic ' buy low sell high' opportunity. The downdraft of late looks due for a direction change as one or two more weekly legs up and a close above the 3x3 DMA (displaced moving average) would confirm a double repenetration of the blue 3x3 line. In our opinion, this type of technical occurrence represents the most powerful indicator for a profound price direction change. Daily trading volumes have been increasing nicely as investors accumulate stock at these depressed levels. With the fundamentals looking constructive and this compelling chart pattern, we feel that the shares should find increased upside momentum soon. The low price certainly appears right to us for a good move higher, all things--above and below-- considered. Salient Points Record 2005 revenues of $7,341,000. Low Market Cap of around $7 million. 2006 corporate plan to grow revenues organically by 50 percent Plans to achieve corporate profitability in 2006 In 2006 continue program to cut member acquisition costs Over 300,000 paid members to www.onlinesupplier.com Over 4000 paid members to www.buydiscount.com  2005: Completed restructuring: focus on core competencies. Focused debt reduction plan--to cut by 50 percent in 2006-- (last reduction payment $300,000 March 2006) from operational cash flow. Paid enrollments at record pace for Q4 2005,Q1 2006. Who's who list of partners: http://www.newave-inc.com/partner.php  Diverse and rapidly growing revenue streams. Plans to pursue an accretive and scaleable acquisition. Current Revenue Streams:  1. Join, Build, Buy Stuff Cheap. Sell It. Make Money. Through NeWave's flagship proprietary site, http://www.onlinesupplier.com the Company marries the best of cutting edge online commerce tools to allow individuals and companies to set up an easy to use, secure and economic 'your brand' web presence to sell goods either on a standalone basis, on eBay or any of the myriad of auction sites.  Not only does NeWave get sellers up and running in a few minutes with an extremely dynamic storefront for a small monthly fee, it supplies the merchant with a huge (and ever growing) inventory of quality, heavily discounted products that members can sell; also including state of the art secure transaction facilities and fast shipment.  To date, onlinesupplier.com has attracted and retained over 300,000 paid members. With hundred's of thousands of people (and more every day) selling goods on eBay and other sites, not to mention businesses needing a web sales presence, the potential for NeWave to be the software of choice to get up and running quickly and securely appears very likely. The Company fields over 4000 enquiries per day regarding its eCommerce solutions. The onlinesupplier.com site enjoyed in excess of 10 million hits in January--a record. Yes, this is a going and growing concern; getting onboard by accumulating shares at these levels looks good from a risk/reward perspective. 2. Join, buy stuff cheap. Keep it. Save Money Through NeWave's newer venture www.buydiscount.com members can easily and securely purchase more than 30,000 goods at significant discounts to retail prices. In the 60 days following the December 2005 launch, the site has already secured over 4000 paid members. The site sells everything office or electronic; from cables to computers to video game systems and everything in between at heavily discounted prices. The site is constantly adding new products and deals to retain shoppers and increase both membership and sales. 3. Join, learn how to use the best software. Quickly. NeWave is constantly adding new products and revenue streams to onlinesupplier.com, such as a the recently announced offering of software tutorial products at its newly branded site www.mysoftwaretutor.com .  Through a licensing arrangement with STI (Software Tutoring International), the initiative includes an assortment of user-friendly tutorials to train members on all manner of software from, among others, Microsoft, Adobe and Macromedia. As well, there are an increasing variety of illustrative, graphic design and web design offerings. NeWave intends to include it on onlinesupplier.com to members as a 'software of the month club' product for a $19.95 per month subscription fee. We have little doubt that the potential growth in paid memberships, business and rising revenues for NeWave will make the current share price look surprisingly cheap in 6-12 months' time, probably a lot sooner. For whatever reasons, I'm quite amazed it has fallen so far given the stellar progress made in the last few months by the Company. I also have no doubt NeWave will add to and expand current revenues streams to continue and maximize that growth. We look forward to a report of updated membership numbers in the near future. Bet they'll be good. Some context: Forrester Research states that by 2010, online sales should exceed $340 billion--roughly double the current annual figure. Computer hardware and software sales should top $17 billion by 2010. Within five years, fully half of US households will be shopping online--39 percent do now. Enough stats...you get the picture. Big-Time growth.  NeWave appears to have the products and moxie to get into that growth fray and stay in the thick of it for a long time. By the time investors who have largely ignored this name figure out the potential, SmallCap readers will own cheap shares and be waiting for a decent advance.   Press release NeWave Posts Record Revenue For 4th Quarter and Full Year 2005 Goleta, CA -- Mar 22 Newswire / NeWave, Inc. (OTC Bulletin Board NWWV - News) today announced record revenue for both the fourth quarter and full year 2005. Revenue for both the quarter and year ended December 31, 2005 was $2,319,845  and $7,340,999  respectively. Net loss for both the quarter and year ended December 31, 2005 was (.02) and (.17) per share respectively. NeWave CEO Michael Hill stated, "Although for the second consecutive year we were able to achieve record revenue, 2005 was a year of significant transition for us. We discontinued unprofitable and capital intensive businesses of Auction Liquidator and Discount Online Warehouse and refocused our efforts on our core competency of fee-based loyalty programs. In doing so we took charges to our P & L in the year 2005, to set us up with a fresh slate in 2006."  He added, "Additionally, when you factor in the record setting months during the fourth quarter of 2005 and first quarter of 2006 for new memberships, the resulting  residual income earned from those members is typically recorded 30-60 days after enrollment. Consequently, we ended 2005 with substantial momentum in the fourth quarter and given the early returns so far we expect 2006 will be an outstanding year in terms of considerable revenue growth and significant improvement to our bottom line." NeWave CFO Paul Daniel added, "These results highlight what we believe to be an effective execution of our operational initiatives which began in mid -2005. We set out to; introduce several new quality offerings, increase both our revenue per customer and  retention rate of our members while decreasing our customer acquisition costs. I believe we are now in the midst of hitting our stride on all of these milestones and continue to look for even stronger financial performance as this year progresses." About NeWave, Inc. NeWave, Inc. through its websites 'onlinesupplier.com' and 'buydiscount.com", provides ecommerce solutions and thousands of high value products at significant savings to its online loyalty club customers and members.  To find out more about NeWave (OTCBB: NWWV), visit our websites at www.newave-inc.com, www.onlinesupplier.com and www.buydiscount.com. The Company's public financial information and filings can be viewed at www.sec.gov.  Forward Looking Statements This release contains forward-looking statements, including, without limitation, statements concerning our business and possible or assumed future results of operations. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons including: our ability to continue as a going concern, adverse economic changes affecting markets we serve; competition in our markets and industry segments; our timing and the profitability of entering  new  markets; greater  than  expected costs, customer acceptance of our products and services or difficulties related to our  integration of  the  businesses we may acquire; and other risks and uncertainties as may be detailed from time to time in our  public  announcements  and  SEC filings. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations.  We  do  not  intend  to  update any of the forward-looking statements after the date of this document to conform these statements to actual results  or  to  changes  in  our  expectations, except  as  required  by  law.   Contact: Michael Novielli Chairman NeWave, Inc. mnovielli@newave-inc.com  phone: (845)575-6770   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 Get On the Blog Keen readers and investors really need to make frequent trips to our blog --SCBLOG--to keep up with our thoughts and strategies that come up between issues. As well, we put in buy and sell targets, throw in the odd new idea and delineate strategies to make and save you money. For example, we've had some pieces there on recent rockets Sense Holdings, CEL-SCI, Xtreme and others. Also, any comments are gratefully accepted and responded to with the intent of getting a decent discussion going. Come on along to the SCBLOG to make and save some cash and keep up with the actions and news in our favorite names.   Hey, Cisco. Thought we'd update Cisco as we alerted the readership in December at $17.52. We're bowing out with a win as the shares hit $21.85, Tuesday, or a snappy 25 percent gain in a couple months. The shares are firmly up against a 3/8 retracement (click here to view chart) and we should see a pullback from around these levels. Long-termers could hold on, but given the fact that CSCO idled for so long, traders know that a few bucks in hand... While the tech picture still looks decent, the smallcap market has gained significant legs in the last while, so we'll concentrate on winning those battles in the future instead of focusing on the big guys. So CSCO holders, it's down to y'all. Our work here is done. 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. To ensure newsletter delivery, you can add any additional email addresses you may have to the SmallCapDigest Member List. Receiving the SmallCapDigest Newsletter in multiple locations is the best way of making sure you don't miss the next investing or trading opportunity! For web based email addresses, the SmallCapDigest recommends @yahoo.com or @aol.com for timely and reliable email newsletter delivery. Subscribe Here Note: Your email address will be kept strictly confidential, and will not be shared with any other entity for any purpose at any time. If you no longer wish to receive the SmallCapDigest, simply follow the instructions located at the bottom of every SmallCapDigest Newsletter Edition. 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. 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 Group, LLC.  To the degrees enumerated herein,  this newsletter should not be regarded as an independent publication. Visit 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 $60,000 by NeWave for coverage of the company. In addition, one of the principles of TGR Group LLC is also a principle of MarketByte LLC. In a separate contractual relationship in 2004, MarketByte LLC was paid a fee of $25,000 in cash and 750,000 newly issued, restricted shares by NeWave for coverage of the company. The aforementioned shares are all currently eligible to be free trading. The term of MarketByte's obligation to NeWave has expired. All statements and expressions are the sole  opinions of the editors and are subject to change without notice. A profile, description, or other mention of a company in the newsletter is neither an offer nor solicitation to buy or sell any securities  mentioned. While we believe all sources of information to be factual and reliable, in no way do we represent or guarantee the accuracy thereof, nor the statements made herein. From time to time TGR Group LLC sells shares in the open market it receives as compensation for coverage of client companies. Since the shares are received as compensation for services as previously disclosed, and not for investment purposes, the editors do not view the sale of the shares as contradictory to any advice delivered in the content. This should be viewed as a conflict of interest by shareholders or prospective shareholders of the client companies. The editor, members of the editor's family, and/or entities with  which the editor is affiliated aside from TGR Group LLC itself, are forbidden by company policy to own, buy, sell or otherwise trade stock for their own benefit in the companies who appear in the publication unless specifically disclosed in the newsletter. The profiles, critiques, and other editorial content of the SmallCap Digest and SmallCapNetwork.net may contain statements that appear forward as it relates to the expected capabilities of the companies mentioned herein. Some of the companies featured in the SmallCap Digest Newsletter pay an ESP (Electronic Service Provider) fee of $2,500 per month to an affiliated Technology Company for electronic delivery of this newsletter and other web related technology services. THE READER SHOULD VERIFY ALL CLAIMS AND DO THEIR OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED. INVESTING IN  SECURITIES IS SPECULATIVE AND CARRIES A HIGH DEGREE OF RISK. THE INFORMATION FOUND IN THIS PROFILE IS PROTECTED BY THE COPYRIGHT LAWS OF THE UNITED STATES AND MAY NOT BE COPIED, OR REPRODUCED IN ANY WAY WITHOUT THE EXPRESSED, WRITTEN  CONSENT OF THE EDITORS OF SMALLCAPNETWORK.NET. We encourage our readers to invest carefully and read the investor information available at the web sites of  the Securities and Exchange Commission ("SEC") at http://www.sec.gov and/or the National Association of Securities Dealers ("NASD") at http://www.nasd.com. We also strongly recommend that you read the SEC advisory to investors concerning Internet Stock Fraud, which can be found at  http://www.sec.gov/consumer/cyberfr.htm . Readers can review all public filings by companies at the SEC's EDGAR page. The NASD has published information on how to invest carefully at its web site.