Dow Jones 10608.59 +53.66 8:04 am PST, August 19, 2005  NASDAQ 2140.64 +4.56 For info, visit access.smallcapnetwork.com S & P 500 1223.38 +4.36 Change your subscription status here Russell 2000 652.98 +1.79 VOLUME 05: ISSUE 63  Feature:  Superclick Gets Pounded - Opportunity Knocks? On July 26th, we noted that Superclick (OTCBB: SPCK) shares appeared oversold. Over the next couple of weeks the price firmed a bit, idled and then, a couple of days ago, selling resumed and dropped the shares to below 50 cents--a price level not seen in well over a year. Unless we're missing something, the selling appears both irrational and overdone. We aren't aware of any material reason for the decline and, while annoying; there well could be a decent opportunity for risk-oriented traders. Long-term holders also may well want to accumulate some shares at these levels. We believe that when the company concludes the Hotel Net acquisition, which we previously noted, the subsequent growth of the its installed footprint by 40 percent and other benefits as a result of that deal should be very positive for the shares. Admittedly, the chart looks awful. The shares broke through their .618 retracement level at 57 cents and traded as low as 46 cents, Thursday. Interestingly, that's the same level we initially bought Superclick to the readership back in February 2004. The shares have traded over $1 three times since that initial introduction. While we are not aware of any material reason for the decline, this is the smallcap market. Both selling and buying frequently tend to be overdone. As we mentioned in July, the deal for Hotel Net is for 4.75 million shares and while there may have been some initial dilution concerns by investors, the benefits of the acquisition, in our opinion, outweigh this perceived negative. When the Hotel Net deal is consummated, hopefully soon, we are confident that the details and benefits of the combined entity will impress investors. This feeling isn't based on any prior knowledge, but on our confidence in management to do a deal that is in the best interest of both the company and the shareholders. Using that 46-cent level as a comparative, investors will agree that the small company we Alerted the readership to in February 2004 at that level has come a long way. Over the last 12 months, revenues have exceeded $4 million. With SPCK's current market cap of around $15 million--including the shares issued for Hotel Net-- there is likely room for the shares to rise. Will it be volatile? Sure. Look at the chart. There have been multiple opportunities to profitably trade the shares. Superclick's large and quality partners such as Verizon and Locatel, among others, have already delivered significant business. As well, the company, through its own efforts has increased its installed base exponentially in a very short period of time. We are aware of no reason that this growth trend should not continue. Cash is king. I've received a couple of emails from readers who appear concerned about SPCK's cash position. As usual, Yahoo notes that the company has only $102,000 in cash. Wrong. Again. On August 3rd Superclick did a private placement financing for $2.25 million led by Chicago Ventures Partners. Here are the thoughts of Chicago Venture's Managing Partner: "We are pleased that Superclick chose us to be its financial partner as it executes on its organic business plan and integrates its new acquisition,'' said John M. Fife, Managing Partner of Chicago Venture Partners, LP. ``As a private equity investor, we look for portfolio partners that we believe have a sustainable business and growth potential. We hope to continue to be a financial resource to Superclick as further opportunities emerge.'' The balance of that release is here: http://biz.yahoo.com/pz/050803/83260.html.  Could Superclick shares move lower? Sure. As I said this is the smallcap market; risk is a given. Does all the negativity seem overdone? In our opinion yes, since we can find no material reason for the decline. We have to conclude that for risk-oriented investors and long-term holders the current level offers opportunity; with the caveat that the shares currently look technically challenged. " No guts, no glory" seems an apt epilogue to this discussion.     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 3525 Del Mar Heights Rd #334 San Diego, CA 92130 Subscribe Information is power and timely information is profitable. 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