Dow Jones 11561.01 +33.62 1:23 pm PDT, September 15, 2006 NASDAQ 2235.59 +6.86 For info, visit access.smallcapnetwork.com S & P 500 1319.87 +3.59 Change your subscription status here Russell 2000 729.35 +1.75 VOLUME 06: ISSUE 72 Eagle Broadband Is Ready To Fly Have you ever heard the phrase 'The future is now'? Like most clichés, it might be a little overused, but when it comes to Eagle Broadband (AMEX: EAG) it's a perfectly fitting description. The full potential of broadband Internet is just now starting to be utilized. And, Eagle Broadband is out in front of that trend, setting the pace. Investors owe it to themselves to keep reading - we think the company's stock is well undervalued relative to Eagle's enormous opportunity within the IPTV arena.  What's IPTV? It's an acronym for Internet Protocol Television, which is just the fancy way of describing the technology used to deliver a television broadcast through an Internet connection. If the term seems vaguely familiar, it probably should - a similar technology already exists for telephone communications. That technology is called Voice-Over-Internet-Protocol, or VOIP. Vonage Holdings (NYSE: VG) is one of the key players in the VOIP industry. The important fact to keep in mind about VOIP, however, is how it represents an evolution in how we use the Internet.  Well, that same evolutionary process is now upgrading the video world. >From an end-user perspective, IPTV works just like TV programming sent through a standard coaxial cable. However, that's pretty much where the similarity ends. With IPTV, everything between the TV's set-top receiver to the means of transmission is different...and better. In fact, it's a whole lot better.  IPTV technology, although well-proven, is still relatively new. Eagle was one of the first companies to implement real IPTV. For several years, as part of its former cable television business, Eagle transported thirty channels of cable content from its Head-End in League City via dedicated IPTV fiber-optic lines to its cable customers in Northwest Houston, a distance of roughly thirty-five miles. But, it's clear this means of transmission is a heck of a lot more powerful than the traditional process of sending an electronic signal though a coaxial line. An IPTV transmission, especially when utilizing fiber-optic lines, can deliver considerably more content than traditional cable companies can, but at about the same price. More than that, high-definition broadcasts are common with IPTV. After all, it's inherently a digital signal. Plus, the technology allows its provider all sorts of flexibility, even including control over the advertising delivered to a particular viewing market. Slick? Yeah, as we said above, the future is now...with Eagle Broadband leading the way.    The 'How' Is Even Better Than The 'What' Eagle Broadband is a relatively diversified company, with interests in satellite-based telephony, IT services, and internet connectivity. However, a recent interview with CEO Dave Micek revealed something that should be very interesting to potential investors. The company, with its expertise in all things Internet-based, is undergoing a paradigm shift. Going forward, the company's primary focus will be the delivery of IPTV programming.  No big deal? Were we a casual observer, we might agree. Our job here at the SmallCap Digest, though, is to dig deeper and find great small cap opportunities before anybody else finds them. Of course, we did just that, and what we found was almost jaw-dropping. From our point-of-view, there are several reasons why a potential investor would be crazy to not take a very close look at EAG shares.  For starters, go try and find an IPTV provider that's already up and running. While you may not expect to find many, you might be surprised about how few you can find. Eagle is one of the few outfits actually past the development phase, and able to take it to the streets, so to speak (especially in a particular kind of market...more on that in a second). In this sense, Eagle's ground-floor opportunity may also be a ground-floor opportunity for investors...just because the company is one of the first ones really ready to do business in a meaningful way. And if you don't think being 'first' is important, just think about this...do you know who the second person to fly across the Atlantic Ocean was? We all know the first one was Charles Lindbergh, but we're still trying to find out who the second person was to accomplish the very same feat. So yeah, being first is a huge deal.  One of the other key strategies Eagle is utilizing is simply focusing on new or easier markets, rather than trying to tap into an infrastructure already dominated by someone else. While all the land-line companies like Verizon (NYSE: VZ) or AT&T (NYSE: T) are battling to provide IPTV services over a dinky (i.e. limited) copper phone line, Eagle is going after multiple dwelling units (or MDUs). What's that mean? Rather than even worrying about existing residential consumers, who may or may not be part of a fiber-optic infrastructure, Eagle Broadband is looking to be the television service provider for large condominiums and hotels. In so doing, the company (1) doesn't have to compete with cable companies already entrenched in a particular location, and (2) has the opportunity to use established fiber-optic cable. And as you might imagine, starting with fiber is much easier to do as part of new construction project. And, it's relatively easy to do within an MDU setting, where all the units are within a relatively small space...like the same building. Personally, we think it's a brilliant business decision.  As if that weren't enough, the most impressive aspect of the refocused company is Eagle's involvement in the IPTV delivery process - they basically own every piece of the puzzle. Obviously they provide the set-top boxes used to convert the broadband signal into the video appearing on your TV sets, but don't forget they also own the teleport hardware and lines that pipe the signal in. Oh, and did we mention Eagle also owns the IP distribution rights to over 200 everyday cable channels? And just in case that didn't sink in... Eagle also owns the IP distribution rights to over 200 of the most popular cable channels! While the transmission/reception technology and infrastructure issues may appear to be the biggest IPTV headaches, being able to provide worthy channel content is actually the biggest problem for IPTV providers. With over 200 channels to work with, we'd say Eagle has solved that particular problem rather well, and has a big advantage over most of its IPTV competitors.  The point is, while being in the IPTV business is nice, Eagle is one of the few outfits doing it the right (and profitable) way - by providing an end-to-end solution. We think owning EAG shares could be a smart idea. The company has a very clear picture of where IPTV technology is going, and they can precisely define where they fit into that picture.  (And just wait until we tell you the other cool stuff the company is doing. Look for those details in an upcoming edition, when we have more room.)    The Stock - Ready To Leave The Nest and Fly High ? You know the whole 'buy low, sell high' thing? We think EAG shares are offering that kind of possibility...in a big way. Although a true bottom is never confirmed until well after a stock has risen above it, a strong argument could be made for Eagle shares being somewhere near a bottom right now. Not only has the pace of the pullback slowed, we may be at the beginning of a new uptrend. Take a look at the chart with us.  Over an eight-day span in mid-August, you can see how the stock found support at 47 cents. It was the strongest (and longest) stretch of support EAG had seen in a while. And what was preventing it from falling any further? Volume. If you look closely at the volume bars during that time, you can see how the tall red bars transitioned into tall green bars...meaning then, for whatever reason, was the point in time when the buyers finally started to outnumber the sellers. Of course, the giant rally that managed to push the stock well off the 47 cent level was made on enormous volume - which is a much needed ingredient if this bounce is to get any traction. Since then, we've seen a pretty decent follow through. Yes, there was a fairly heavy wave of profit-taking right after the bullish surge, but the volume trend over the last three weeks has shifted to an accumulation mode. And that's not our opinion - we're taking our cue from the on-balance-volume line being pointed higher. But even if we were just eye-balling it, we would still have to say there's a major shift in momentum...one for the better.  For perspective, EAG shares were trading around $2 in May, and had been above $60 in 2004. So by comparison, the current price around 60 cents seems like peanuts. Even recouping a fraction of those levels would still translate into a huge percentage win. Point being, Eagle's radical devaluation over the last few years may mean the 'buy low' criteria has been met. What about the 'sell high' part? As we said, the bottom never becomes obvious until well after the fact. But, between seeing the stock perk up over the last month or so, and in reviewing the information we have on where Eagle is going (remember, we're not concerned about where they've been), we feel EAG's reward-to-risk scenario merits some serious consideration.      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 Want Even More Great Ideas And Opinions?  If you're only reading the e-mail version of our newsletter, then you're missing some great stuff. Be sure to boomark our blog page and check it often - you'll have easy access to our thoughts on the market, opinions on stocks and sectors, commodity and currency trading ideas, and more!    Xtreme's 'Challenger' Boats Making Waves On The Racing Circuit By now you've noticed our coverage of Xtreme Companies (OTCBB: XTME) has been ramped up over the last few days. The headline above is one of the reasons why. In our September 6th edition we explained the company's decision to drop their fire & rescue boat focus, and devote all of their time, attention, and resources to performance and sport boats. Well, Xtreme clearly knows how to make a fast boat.  Yesterday, the company announced Team Gallagher's 2nd place finish in a recent Panama City, Florida race. The boat they were driving? None other than a Challenger DDC-28. The strong finish came just a month after Team Gallagher's 2nd place finish in a Hollywood Beach race.  Conclusion? Xtreme's Challenger boats are smokin' hot. You can bet that other teams are now taking notice of how well the Challenger line performs. And, considering there are 85 teams in the same racing circuit Gallagher runs, a little envy may prompt a few sales in the coming year. More than that, boating enthusiasts also continue to see Challenger boats leading the pack. Wanting to mimic a winner, we expect Xtreme's and Gallagher's recent success to create a buying buzz at all of this year's boat shows.  For the full release, click here.   Ckrush Signs U.S. Distribution Deal For 'National Lampoon's TV: The Movie' Ckrush Entertainment (OTCBB: CKRH) will be enjoying Xenon Pictures' expertise when it comes time to roll out one of their movie projects to theaters, and then later as a DVD. Xenon has acquired theatrical and DVD rights to Ckrush's 'National Lampoon's TV: The Movie'. The press release didn't include any specifics about the contract, but no matter what, it's a major victory for an up-and-comer like Ckrush to be rubbing elbows with a higher-profile promoter like Xenon. Once again, Ckrush has moved a little higher up the credibility ladder. And, with Xenon fronting the film, it won't hurt Ckrush's revenue effort either.   MIV Therapeutics Adds Expert To Advisory Board, Buys A Company Back in our July 6th edition, we took a look at MIV Therapeutics' (OTCBB: MIVT) medical breakthrough in the field of biocompatible coatings. In a nutshell, MIV's Hydroxyapatite (or 'HAp', for short) was the solution to problematic stents, as it had been shown to not cause the same problems created by traditional heart stents. The technology, for lack of a better word, is miraculous.  Another step in the evolutionary process of Hydroxyapatite was taken Thursday, when the company named Joseph P. Carrozza, Jr., M.D as the newest member of the company's scientific advisory board. Dr. Carrozza is the Chief of Interventional Cardiology at Beth Israel Deaconess Medical Center, an Associate Professor of Medicine at Harvard Medical School, and a widely recognized expert in the field of interventional cardiology. We have no doubt Carrozza's credentials make him an excellent addition to the MIV team.  To see the whole press release, click here.  Also, MIV Therapeutics announced Thursday it has entered into a formal agreement to acquire (subject to the prior satisfaction of certain conditions) Vascore Medical (Suzhou) Co., Ltd. Vascore is a Chinese manufacturer of advanced cardiovascular stents and other medical devices.  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. 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Unsubscribe Here D I S C L A I M E R: The Small Cap Digest, the Small Cap Network, its website and email newsletter (hereafter, cumulatively referred to as "SCD") , is an independent electronic publication committed to providing its readers with factual information on select publicly traded companies. SCD is owned and operated by TGR Group, LLC ("TGR"). TGR 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, TGR accepts compensation from third party consultants and/or companies, which it features in the publication and circulation of SCD. To the degrees enumerated herein, SCD 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://www.smallnetwork.net/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 $25,000 cash and 115,000 shares of newly issued restricted stock by Eagle Broadband for coverage of the Company. Ckrush, Inc. has paid TGR Group LLC a fee of $30,000 for coverage of the company. In addition, TGR Group LLC has been granted 500,000 restricted warrants convertible into common stock at $.25 by Trilogy Capital Partners. In addition, TGR Group LLC has also been granted 750,000 free trading warrants convertible into common stock at $.25 by a non-affiliated third party shareholder for coverage of Ckrush, Inc. TGR Group LLC has been paid fee of $30,000 by MIV Therapeutics for coverage of the company. In addition, TGR Group LLC has been awarded 272,000 warrants with an exercise price of $.26 by Trilogy Capital Partners for coverage of MIV Therapeutics. All of the aforementioned coverage obligations have expired. MIV Therapeutics has paid TGR Group, LLC an additional $10,000 for the current coverage. TGR Group LLC has been paid a fee of $25,000 cash and 500,000 shares of newly issued restricted stock directly by Xtreme Companies for coverage. The aforementioned shares have become free trading under Rule 144. On March 7, 2006, TGR Group LLC entered into a contract extension whereby TGR could receive as much as $65,000 cash and 1 million, newly issued restricted shares over the next one year period from Xtreme for coverage of the company. To date, TGR has received an additional $20,000 and 250,000 newly issued restricted shares. 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