Dow Jones 12720.46 +108.33 1:41 pm PDT, April 16, 2007 NASDAQ 2518.33 +26.39 For info, visit access.smallcapnetwork.com S & P 500 1468.47 +15.62 Change your subscription status here Russell 2000 831.44 +12.06 VOLUME 07: ISSUE 40 Titan's Turning The Earnings Corner I don't think there's anything better than owning stock in a company at the time it starts to move out of the red and into the black. It seems like almost every time it happens, a whole new world of investor interest is opened up. Of course with such a change in financial fortune, that interest often ends up being demand, typically driving the price higher.  Well, ladies and gents, congratulations - a lot of you may already own the stock I'm thinking of. And if not, we still think there's good news for you. Why? Amazingly, you can still get into shares of Titan Global (OTCBB: TTGL) at pretty much the same level we saw it trading when we first featured it a few weeks ago. For the record though, I doubt the market's going to offer up a third low-entry chance after catching wind of today's news.    Change Happens In An Instant It's amazing how quarter's worth of effort really only takes the blink of an eye to materialize. Slightly more amazing in Titan's case may be how they were pretty much telling us something like this could happen soon (though we chimed in too). Yet, odds are a lot of investors didn't heed the warning.  Well, with the snap of the fingers, the 'here and now' confirms to us our bullish suspicions of TTGL were valid. In the second quarter of their current fiscal year, Titan raked in record revenues, and generated the highest EBITDA (EBITDA = earnings before interest, taxes, depreciation, and amortization) we've ever seen from them. But here's the sweetest part of all.....they posted a net operating income. Yeah, yeah, I know they're supposed to generate profits, so no big deal? The key point here is how Titan, by being able to pull in more than they take out, may have just proven their viability.....which can be a deal-maker (of sorts) for the the average 'show me first' investor.  And it's not like they just barely scraped by. Check it out....  In their second quarter of 2007, they improved revenues by 38% above the same quarter a year ago, generating $36 million in sales. The EBITDA of $8.6 million was a heck of a lot better than Q1's EBITDA of $1.2 million. Quarterly net income went from being in the red by $2.9 million in Q2 of last year to being in the black by nearly $1.5 million this year. That figure represents 4.1% of sales, and is the newest link in a long chain of incrementally better results.  This link, however, could also be considered a defining moment in the company's history. Better still, this link could be a rewarding moment for investors.    What's Next? A snapshot is fine for your trip to the zoo, but as an investor, one quarter's worth of data isn't enough. As I've said umpteen times, the decision to own a stock should be based on where the company seems to be going - not based on where they've been. It's advice worth repeating today, in my opinion, particularly when I look at the trail of results left behind by Titan Global. Revenues are going up; expenses are not moving up as much (what a novel concept!). So, I'm not shocked at all Titan turned the corner. They've been walking down this path for a while, getting closer and closer to today's vindicating news as each quarter passed by.  The thing is, it's not like they're going to steer off this path that got them here.  I know that's a simple observation, but at the end of the day, what else is there? I have no reason to think things will change in the future. On the contrary - I think Titan has found a groove that works for them.....and now works for shareholders too.  So, when we now bring up the $144-$172 million sales estimate mentioned earlier in the year, we can do it with a huge amount of confidence. Better still, when we bring up positive earnings again, we can do that with plenty of confidence as well. I'd actually be surprised if they didn't hit their intended numbers.    Bottom Line (Ours, & Theirs) One of the key attractions we found when examining Titan's numbers is its capitalization....or maybe we should say lack thereof. It didn't make any sense to us how a company likely to do around $150 million in sales could only have a market cap of about $60 million. By most standards, those numbers should be the other way around. The knock-out punch in the scenario is whether or not that $150 million could be profitable (which we now know is achievable).  Granted, another quarter or two would go far in cementing the profitability idea with other investors, and us as well. However, we still have to ask the collective 'market'.....what else do you need to see? They've proven most everything they need to prove to us. In terms of trading, at $150 million in annual sales, we estimate those 49 million issued and outstanding shares to be worth $3.00 each. But can Titan produce $150 million per year and also generate positive income? Like we already discussed, the answer to the question lies in the trend. With that in mind, we see two key trends in place. In 2005, Titan saw an EBITDA loss of $2.1 million. In 2006, Titan reported an EBITDA of $7.9 million. In 2007, Titan is looking for an EBITDA of between $18.5 and $22.5 million. Well, they just reported a quarterly EBITDA of $8.6 million, which was more than 1/3 of the full year goal. Last quarters' EBITDA was $1.2 million, meaning this quarter's was better by over 600%.  Over the last five quarters, we've seen revenues improve from $26 M, to $28.8 M, to $27.2 M to $29.9 M, and to the most recent quarters' $36 M. Four of the five saw top line increases, with the most recent one being a 20% improvement over the prior quarter. Annualize the most recent results ($36 million multiplied by 4), and you're already on track to that $144 million - at least.  And today, they've got net income to add to the list of achievements. So, you tell me what's left to prove - if anything. I for one am sold on the idea. And to be totally honest, I think once this news starts to spread, a lot of other investors will be convinced too. After all, they're going to be looking at the same growth rate we detailed above.  If you were impressed by the numbers like I was, and if the rest of the market is as well, then you know what we think is likely to happen. I really feel this one's going to feed on this news over the next few days. If it does, which side of the trend would you rather be on?    Titan Global Holdings Reports Record $36 Million in Revenues for Fiscal Q2 2007 Robust Financial Performance Highlighted by Net Income of $1.5 Million and Reported $8.6 Million in EBITDA  Titan Global Holdings, Inc (OTCBB:TTGL), a high-growth diversified holding company, reported record financial results for its fiscal quarter ended February 28, 2007, highlighted by the Company's record growth in revenues to $36 million, a 38% increase over the $26 million for the comparable period the previous year, with net operating income of $1.5 million, or $.03 earnings per share. The Company also reported $8.6 million in earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter, with all business segments reporting continued strong revenue growth.  During the second fiscal quarter of 2007, Titan continued efforts to organically grow revenues, surging 20% above the first quarter of 2007. The Company also completed refinancing which, in part, eliminated most convertible debentures, enabling the Company to repurchase retire certain stock and more favorably structure working capital needs. These efforts coupled with continued positive financial performance reduced Titan's working capital deficit from $35.8 million at the close of the first quarter of 2007 to less than $9 million at the close of this fiscal quarter.  "Strategically, the quarter's highlights were the continued growth and positioning of our Communications Division and the announced plans to spin-off Titan's printed circuit business," said Bryan Chance, Chief Executive Officer of Titan Global Holdings. "The spin-off allows Titan to accelerate strategic transaction flow at all divisions which will significantly build overall shareholder value."  Consolidated Results   3 Months Ended 6 Months Ended Consolidated February 28, 2007 February 28, 2006 February 28, 2007 February 28, 2006 Revenues 36,078  26,003  66,064  49,510  Gross Profit 3,855  2,064  7,284  4,173  Net Income 1,492  (2,964) (5,348) (9,300) Communications Division  The Communications Division reported record second quarter revenue of $30.9 million, an increase of $9.6 million or 45% increase from the same period a year ago. The Communications Division also reported earnings before interest, taxes, depreciation and amortization of $6.6 million compared to $654,000 for the same period last year.  During the second quarter, Titan strengthened its owned and leased network platform to terminate international calls, launched Picante Movil and Titan's new wireless product offering leveraging the Company's flagship Picante brand.  "Our Communications Division continues to increase market share and position itself for sustained growth and profitability," said Kurt Jensen, President and Chief Executive Officer of Titan's Communications Division. "Throughout the remainder of fiscal 2007, Titan's Communications Division will further expand its owned and leased network platform through organic and strategic initiatives, pursue strategic acquisitions in the wireless space and work to improve the profitability of our overall operations."    3 Months Ended 6 Months Ended Communications February 28, 2007 February 28, 2006 February 28, 2007 February 28, 2006 Revenues 30,938  21,304  55,512  44,571  Gross Profit 4,134 1,329 7,282  3,385  Net Income 2,582 (1,276) 1,544 (1,455) Electronics and Homeland Security Division  The Electronics and Homeland Security Division reported increased revenues of $5.1 million, a 9% increase from the same quarter last year. The Electronics and Homeland Security division reported earnings before interest, taxes, depreciation and amortization of $3.2 million compared to negative result of $344,000 for the same period last year. The increase in the EBITDA is primarily related to the gains recognized on the extinguishment of the convertible debentures.  The revenue growth Titan achieved was in large part due to the addition of more than 50 new customers which is a direct result of the Company's new 'rep centric' sales organization. The Company's gross profit margins were compressed as a result of increased material cost and the decline in demand for quick turn services. "We continued to demonstrate progress with increased revenue and continue to gain market share during a time of transition in the market for printed circuit boards," said Curtis Okumura, President of Titan's Electronics and Homeland Security Division. "We will continue to identify operational efficiencies to increase profitability in the printed circuit board companies and look to continue to increase market penetration for the remainder of fiscal 2007."      3 Months Ended 6 Months Ended E&HS February 28, 2007 February 28, 2006 February 28, 2007 February 28, 2006 Revenues 5,140  4,699 10,552  9,112  Gross Profit 57  735  339  788  Net Income 127  (1,688) (5,047) (7,845) About Titan Global Holdings  Titan Global Holdings, Inc. ("Titan") (OTCBB:TTGL) is a high-growth diversified holding company with a dynamic portfolio of companies engaged in emerging telecommunications markets and advanced technologies. In its last fiscal year Titan generated in excess of $109 million in revenues on a consolidated basis.  Titan's Oblio Telecom Inc. ("Oblio") telecommunications subsidiary, based in Richardson, Texas, is a market leader in prepaid telecommunications products and the second largest publicly-owned international telecommunications company focused on the prepaid space. Oblio leverages strategic agreements with Tier 1 telecommunications leaders Sprint and Level3 to supply its brand-name prepaid calling cards. Annually Oblio sells an estimated 35 million of its brand-name prepaid calling cards through its established distribution channels estimated at more than 60,000 retail outlets. Titan Wireless, Inc. ("T Wireless") is Titan's wireless subsidiary and is a mobile virtual network operator ("MVNO"). T Wireless sells its MVNO prepaid wireless products and wireless services through Oblio's established distribution channels. Titan's Electronics and Homeland Security division specializes in advanced manufacturing processes to provide commercial production runs and quick-turn delivery of printed circuit board prototypes for high-margin markets including Homeland Security and high-tech clients.  For more information, please visit: www.titanglobalholdings.com. For investor-specific information and resources, visit http://www.trilogy-capital.com/tcp/titan/ or http://www.b2i.us/irpass.asp?BzID=1314&to=ea&s=0. To view current stock quotes and news, visit http://www.trilogy-capital.com/tcp/titan/quote.html. To view an investor fact sheet about the company, visit http://www.trilogy-capital.com/tcp/titan/factsheet.html.  Forward-Looking Statements  Safe Harbor Statement Under the Private Securities Litigation Act of 1995 -- With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. The actual future results of TTGL could differ significantly from those statements. Factors that could cause actual results to differ materially include risks and uncertainties such as the inability to finance the company's operations or expansion, inability to hire and retain qualified personnel, changes in the general economic climate, including rising interest rate and unanticipated events such as terrorist activities. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms, or other comparable terminology. These statements are only predictions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements. For further risk factors see the risk factors associated with our Company, review our SEC filings.  Contact:  Trilogy Capital Partners  Financial Communications:  Ryon Harms, Toll-free: 800-592-6067  ryon@trilogy-capital.com   We Value Your Feedback   Got comments, questions or suggestions? Send 'em on over: Email the Editor 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 Catching Up on MIV Therapeutics With all the specific news items we've needed to cover for MIV Therapeutics (OTCBB: MIVT), we really haven't had much of a chance to offer a bird's eye view of what MIV is, and why an investor would be interested. Fortunately, with a little help, we can do that today.  To get a very recent investor fact sheet, click here. We just reviewed it for ourselves, and it was thorough, yet easy to read (not to mention perfectly brief). For more in-depth data and multi-media presentations, go here. Your name and address may be required.    Stockgroup Backed By Institutional Involvement Can you say 'validation'? We think it's turning out to be a pretty fair assessment of our suggestion to become owners of Stockgroup Information Systems (OTCBB: SWEB). We've seen a lot of growing interest in the opportunity - and more and more of that interest appears to be of the institutional variety.  In fact, a couple of major Canadian financial firms have agreed to serve as underwriters for a public offering of Stockgroup's shares in Canada, but the conditions behind the deal speak volumes about Stockgroup's stature. The underwriting is a 'bought deal', meaning Jennings and Cormark bought and paid for the entire lot of 3,333,334 shares for sale.  So what? Usually an underwriter will agree to sell as much stock as they can, but doesn't necessarily guarantee a particular amount of capital will be raised by investors interested enough to make a purchase. In this case though, the 'bought deal' means Jennings and Cormark paid for the whole issue, as they're confident enough they can sell all 3.3 million shares.  What does that tell you about the company? Is this a case of putting your money where your mouth is or what?  (Almost) needless to say, if these two firms are making that sort of indirect endorsement, we think we made a good choice in suggesting SWEB a few weeks ago.  For more details on the bought deal placement, click here.    Immune Response / Orchestra Ticker Changed  We mentioned it was in the works a few days ago, but here it is.....the ticker symbol for Orchestra Therapeutics - the old Immune Response Corporation - is now 'OCHT'. The symbol switch changes nothing about the share value, and changes nothing about the number of shares issued and outstanding.  You might recall the whole purpose of the name change was to better reflect the company's new focus on treating autoimmune conditions (like MS, diabetes, and Lupus, just to name a few) with their impressive FOXP3+ cell research. The HIV program is being phased out. We're presuming the risk/reward pendulum of carrying both trial programs was swinging in just one direction - in favor of NeuroVax, the company's autoimmune disease treatment currently in Phase II trials.  For more on the ticker change, click here.  Subscribe Information is power and timely information is profitable. Become informed and profit from Small Cap Network 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 Small Cap Network Email Newsletter on a regular basis. To ensure newsletter delivery, you can add any additional email addresses you may have to the Small Cap Network Member List. Receiving the Small Cap Network 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 Small Cap Network 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 Small Cap Network Newsletter, simply follow the instructions located at the bottom of every Small Cap Network Newsletter Edition. Unsubscribe Here D I S C L A I M E R: The Small Cap Network, its website and email newsletter (hereafter, cumulatively referred to as "SCN") , is an independent electronic publication committed to providing its readers with factual information on select publicly traded companies. SCN is owned and operated by TGR Group, LLC ("TGR"). 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 SCN. To the degrees enumerated herein, SCN 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://access.smallcapnetwork.com/profile_disclosure.html for our full profiles and http://access.smallcapnetwork.com/short_term_alerts.html for Trading Alerts.  From March of 2005 through July of 2006, TGR Group LLC was paid a fee of $40,000 by MIV Therapeutics for coverage of the company. In addition, TGR Group LLC was also awarded 272,000 warrants with an exercise price of $.26 by Trilogy Capital Partners for coverage of MIV Therapeutics. All of the aforementioned warrants have been exercised and shares have been sold in the open market. On April 3rd of 2007, MIV Therapeutics renewed coverage and paid TGR Group, LLC $30,000 in cash and 100,000 warrants, convertible into restricted shares at $.50. In addition, TGR Group has been awarded 190,000 warrants, convertible at $.50 into free trading shares, by Trilogy Capital Partners for coverage of the company. On January 19th, 2007 TGR Group LLC entered into an agreement with Stock Group Media, Inc. (a wholly-owned subsidiary of Stock Group Information Systems, Inc.) whereby Stock Group Media, Inc. will provide $50,000 worth of advertising and marketing services to TGR Group, LLC in exchange for coverage of Stock Group Information Systems, Inc. on the Small Cap Network web site and newsletter. TGR Group, LLC has been paid a fee of $30,000 cash and 100,000 shares (reverse split adjusted 12/20/06) of newly issued restricted stock by Immune Response Corp. for coverage of the Company. TGR Group LLC has been paid a fee of $30,000 cash by Titan General for coverage of the company. In addition, TGR Group LLC has been pledged a fee of 100,000 warrants convertible at $1 into restricted shares by Trilogy Capital for coverage of the company.  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. This should be viewed as a conflict of interest by shareholders or prospective shareholders of the client companies.  TGR, its Members and Members' families, 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.  All statements and expressions are the sole opinions of TGR and are subject to change without notice. A profile, description, or other mention of a company within SCN 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.  The profiles, critiques, and other editorial content of SCN may contain statements that appear foward relating to the expected capabilities of the companies mentioned herein.  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 TGR.  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.