Dow Jones 13289.45 +331.01 3:07 pm PST, November 28, 2007 NASDAQ 2662.91 +82.11 For info, visit access.smallcapnetwork.com S & P 500 1469.02 +40.79 Change your subscription status here Russell 2000 770.04 +26.77 VOLUME 07 : ISSUE 111 Cruising the High Seas For Profits (Literally) - Marine Growth Ventures Inc. Company Name: Marine Growth Ventures Inc . Stock Symbol : MGRW Coverage Initiated: November 28th , 2007 Current Price: $0.70 Average Volume: 5,986 52 Week Range: $0.40 - $0.90 Suggested Target: $1.50 Suggested Stop: $0.53 The Small Cap Network has found what we believe to be another great trading prospect with all the right credentials - a brilliant business model, the first and only player in its niche, no toxic financing, and some news today that could really put the wheels in motion. We'll be exploring the company in full as usual, but first, a little business to take care of... You may be aware of it already, but if not, our Merck (NYSE: MRK) stock pick hit our suggested target level of $59.74 yesterday. With an entry of $44.50, that's a pretty nice 34.2% gain. And, considering Merck is a Dow component (and that the Dow only returned a net of 3.9% during this trade's holding period) we're even more pleased.  I know many of you also already locked in at least a 60% gain on Spicy Pickle (OTCBB: SPKL). However, the story is far from over. The restaurateur is still making nice progress in the form of store openings. Two more opened since our last update, bringing the total up to 33. Remember, each operational store annually translates into about $50,000 in high-margin, corporate-level revenue. So, all these additions (past and future) are a pretty big deal.  Now, back to the issue at hand... It took me very little time to become a believer in what Marine Growth Ventures Inc. (OTCBB: MGRW) could do in the near and not-so-near future. Why? Because they're entering into a niche market as the first and only player in the arena - cruise ship timeshares.  I also happen to see today's news as the potential catalyst for outstanding investor returns. More specifically, I see the announcement made just a few moments ago as the 'green light' for the company to start generating its first significant revenue.  The icing on the cake? There's no capital funding deal that could end up diluting current shareholders' stakes later...no toxic financing. The company's capitalization is just built on ordinary loans secured by a member of the current management team. No warrants or options are involved. (How's that for a breath of fresh air?)  If you're serious about finding high-quality, small cap investments, you'll want to keep reading.    Business Model Marine Growth Ventures is a multi-faceted marine-shipping and entertainment-vessel enterprise, with a marine-financing division to round out their offer. But, the current focal point - and the venture I think will really get the company going - is the creation of the cruise ship timeshare industry. The idea is the same as with any timeshare...partial ownerships of, and periodic access to, condominiums are sold to vacationers. The difference here is just that the 'condo' is a cabin on a luxurious cruise ship.  You may be thinking to yourself what I first thought...can that really work? After looking at the numbers as well as all the fine print (especially from the consumer's point of view) I have to think yes, it can work. Why? Because it's a great value proposition for the consumer - the cruises are 'all inclusive', meaning meals, drinks, etc. are all included in what is a fair price for each unit.  The bottom line is, MGRW's 'product' is attractive. Plus, it's now being fronted by one of the premier names in the leisure/travel market (as you'll see below). Yeah, I'd say the idea can 'work' just fine.   Why Now? Why own MGRW now? I think because the business model is going to start working real well, real soon. See, for all intents and purposes the company has just completed the incubation stage, and is ready to enter the revenue stage.  Per today's press release (below), the company has officially contracted Destiny Resorts as its sales agent to start marketing the first of its condominium cruise ships. It's the MV Pacific Aurora - a Canadian-flagged ship with 34 cabins. Sales started this month. Each ship will attempt to sell 50 weeks worth of time per year for each of its cabins. For the Aurora, that's 1700 purchased 'weeks' per year, with a full sell-out of all 34 cabins.  After marketing and other expenses, the company projects net sales of about $15 million for the entire project, and net income of just under $9 million. Compared to no timeshare sales at all last year, the upside is clearly enormous. Here's the eye-popping part though....the Aurora is just one boat. The company ultimately plans on acquiring more ships, doing the condo-conversion, and selling those timeshares as well. How many? In the foreseeable future, Marine Growth Ventures plans on doing between one and two ship conversions per year. A little further down the road, they expect to do between two and four.  Using the Aurora's round numbers, the stage is set for some staggering possibilities.  With only about 200 cabins - say about three average-sized ships - now we're talking about $90 million in revenue, or somewhere around $50 million in income. When you factor in the company's goal of doing between one and four new boats per year over the next several years, well, it certainly paints an impressive fiscal growth picture for shareholders.  And yes, the company is shopping for more boats at this time.    Even More To The Story What I really like best about this company from an investor's point of view is the distinctly different revenue streams the company is setting up for themselves. I don't have room to get into every detail of all the revenue paths today, though I do want to plant a few seeds for future coverage. The company is also getting involved in:  * Marine Finance - The marine lending/financing market is wildly profitable, mostly because there are so few who understand it well enough to do it successfully.  * Casino Cruises - Enough said (though it's not on the immediate radar).  * Aggregate Freight - 'Aggregate' is just a fancy word for rocks (limestone, specifically) used in building and construction materials. The margins here are ridiculously strong....around $8 per ton, with the largest freighters able to haul thousands of tons at a time.  * Ship Management - The crew and operations for many boats is actually an outsourced service.  Honestly, the company could have started and stopped with the condo timeshare venture, and I would have been convinced - that alone appears to me to be a multi-million dollar opportunity. The soon-to-be-detailed ventures, however, clinch the deal. I feel those different businesses offer a layer of extra safety to shareholders, via built-in diversity.    Bottom Line As cliché as the term 'ground floor opportunity' has become, that's what I truly see in Marine Growth Ventures. They've had minimal revenue in the past, but also didn't own revenue-bearing properties. Now - and going forward - they have lots of resources to tap into while getting the revenue machine up and running.  The 'newness' of those resources is the reason for investor urgency here. Once the rest of the market recognizes the same thing, I think trade volume is going to pick up significantly and push shares upward. You can beat most everyone else to the punch and be one of the earliest owners of the company, if you're willing to act today.  The part of the story I'm still (almost) speechless about is the capitalization. There are currently 21.7 million shares issued and outstanding, each priced around 70 cents. That turns into a market cap of about $15.2 million. The potential dilution stemming from stock-based and convertible-debt financing?Nada. Zilch. None of the financing involves issuing more shares, so current owners don't have to worry about being spread too thin later on. As if that weren't enough, one of the most impressive things about this company is who collateralized the initial loan....one of the same guys helping run. He's eating his own cooking, so to speak, as all of the management team is. So, you know they're not going to be reckless regarding the stock's price.  Based on the relatively small market cap versus the potential sales dollars the company could generate in the near future, I think a short-term target (looking out over the next few weeks to months) of $1.50 is fair. Assuming a typical price/sales ratio of about 2.5, revenues of around $15 million - roughly the Aurora's expected top line figure - could easily support that market cap of around $32.5 million.  As for a stop, I think the market has drawn an important line in the sand around the 53 cent level.  In that vein, I think MGRW could appreciate even more on a longer-term basis. Remember as more cruise ships are added, the other revenue drivers are also going to be cultivated. We'll have the short-term/long-term discussion later though. The Bottom Line and BIG Question: I firmly believe today's Destiny news is the seed that will drive MGRW toward substantial revenue growth in the coming months. So are you willing to take a shot, get behind the wheel and turn the key for potentially huge investment returns, or would you prefer to safely sit on the curb and watch the cars go by? The inherent risk associated with small stocks is not for everyone, but it has been proven over and over again that small stocks often do generate the biggest returns. It's your call.  Here's the official press release.    Marine Growth Ventures, Inc. Announces Agreement with Destiny Cruise Ventures  Destiny is a Multifaceted Company in the Timeshare & Vacation Industries  CAPE CANAVERAL, Fla.-- Marine Growth Ventures, Inc. ("MGV") (OTCBB: MGRW), a diversified high growth marine holding company, today announced an agreement between Marine Growth Canada, Ltd., its wholly owned subsidiary, and Destiny Cruise Ventures, Inc., a wholly owned subsidiary of Destiny Resorts ("Destiny"), as its Master Sales Agent for all on vessel and off site sales of the timeshare intervals. Destiny replaced Euro Oceans Company.  Destiny is a multifaceted and versatile company involved in all areas of the Timeshare/Vacation Ownership and resort development industry. Destiny will provide services to MGV on an exclusive basis. Destiny and its principal Steve Drummond have many years of experience in marketing and selling timeshare products.  Recently MGV announced registration and approval by the State of Florida in order to commence Timeshare sales on its MV Pacific Aurora, a Canadian flagged vessel. MGV is the first company ever approved by the State of Florida to sell boutique timeshares on ships. MGV is committed to the timeshare space and expects the MV Pacific Aurora to be the first of its planned timeshare conversions. "This is one of the most exciting and unique products to be introduced to the timeshare industry in recent history. I am proud to be part of this exciting project," said Steve Drummond, Principal of Destiny Cruise Ventures and Destiny Resorts.  "The announcement of our Master Sales Agent is consistent with MGV's strategic plan for revenue and earnings growth during 2008 in the marine sector," stated Craig Hodgkins, President and Chief Executive Officer of Marine Growth Ventures. "Our agreement with Destiny Cruise Ventures marks the beginning of our selling phase which promises to be very successful under the guidance of Steve Drummond," he added.  The MV Pacific Aurora will cruise Canadian waters offering both summer and winter itineraries. Timeshare owners will enjoy seven day cruises for time periods of their choosing in some of the most exotic and beautiful marine areas in the world.  "The acquisition of the MV Pacific Aurora firmly positioned our company in the business of providing timeshare at sea," said Craig Hodgkins, President and Chief Executive Officer of Marine Growth Ventures, Inc. "We expect our marketing of these units to accelerate in upcoming weeks. Further, we are examining additional ships to provide new timeshare products for our customers in future months."  For direct sale information or to become an independent sales agent, contact Destiny at 417-339-3336 or e-mail at info@destinycruiseventures.com.  About Marine Growth Ventures, Inc.(www.MarineGrowthVentures.com):  Marine Growth's mission is to find, develop, and place in service operating businesses related to our oceans; our vision is to build successful businesses while respecting and protecting our most important environmental resource - our oceans. Marine Growth Ventures seeks marine related opportunities in transportation, freight, aggregates, technology, energy, and homeland security.  Investor Information - Sign up to request investor information and receive regular news and updates from Marine Growth Ventures, Inc. - http://www.marinegrowthventures.com/contactus.php or Email us at: investor-relations@marinegrowthventures.com. 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 MGRW 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, and 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:  Marine Growth Ventures, Inc., Cape Canaveral  Media Relations:  Blois Olson, 651-221-1999  B.Olson@new-school.com  Source: Marine Growth Ventures, Inc.    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 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. 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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.  TGR Group, LLC has been paid a fee of $30,000 cash and 100,000 shares of newly issued restricted stock by Marine Growth Ventures, Inc. 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. 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