Dow Jones 11917.20 -30.50 9:05 am PDT, October 13, 2006 NASDAQ 2350.80 +4.62 For info, visit access.smallcapnetwork.com S & P 500 1362.33 -0.50 Change your subscription status here Russell 2000 760.43 +3.34 VOLUME 06: ISSUE 81 Eagle Sets Its Sight On "No Line of Sight" Looking for the kind of stock that can move 15% higher in less than a month? Well, Eagle Broadband (AMEX: EAG) did it. In our effort to bring to you some of the top small cap trading ideas, we introduced Eagle Broadband after the market closed on September 15th. Shares opened the next trading day at 59 cents, and closed yesterday at 68 cents....a 15.2% gain in just nineteen trading days.  Better yet, if the company can keep doing what it's doing, we think more of the same could be in store for shareholders. Just imagine the kind of return you'd get when 'annualizing' the stock's recent percentage returns - it would be well into triple-digits.  But you know what? While we'd understand the market's collective salivation over recent results, we actually think the most compelling piece of the puzzle is in the fact that Eagle's shares are just off of multi-year lows. The stock was trading above $5.00 in January, and higher than $3.00 at some points in May. To frame it in a mathematical terms, a very cheap stock + renewed company strength = big recovery opportunity. Even just a bounce to half of the highs we saw in May would still leave shares above $1.50...and would reap more than a 100% return for today's buyers.  So, Eagle, a diversified company apparently firing on all cylinders (as you'll see below), still presents the same high-potential opportunity we discussed in mid-September...one that may well be worth the risk for savvy investors.    Eagle Is No One-Trick Pony We originally profiled Eagle Broadband as an IPTV service provider, but truth be told, they're much more than just that. They also have interests in satellite-based telephony (which we'll finally get to highlight today), and IT services. Today's news is just more evidence of Eagle being able to tap into its full revenue potential, as the company has announced a major sale of satellite phone equipment. But first...  What's the news about? We haven't been able to highlight Eagle's SatMAX(r) technology yet, but yesterday's announcement sets up the ideal chance to do so. In a nutshell, Eagle's exclusive SatMAX units allow their users to achieve reliable, fully wireless, voice and data communications from any non-line-of-sight, indoor location. It's a big deal, since satellite phones typically must be within line-of-sight access to orbiting satellites in order to operate effectively. Of course, being satellite-based rather than land-based, the technology completely avoids the inherent problems and vulnerability of conventional cell phones. The reliable functionality of Eagle's SatMAX units makes them an obvious choice for government agencies, who can't risk not being able to communicate during a crisis, or in a location where cell phone towers don't exist.  In any case, Eagle sold five SatMAX units to the federal government, ringing the cash register for what we're sure is a nice chunk of change. And, as those of you in sales already know, each transaction you process opens up even more doors for future sales. We won't be surprised to be reporting an even bigger transaction down the road....that's the really exciting part.  For the full details on the SatMAX purchase, scroll all the way down to the press release below. Just keep reading if you want to know how you can take advantage of the opportunity as a shareholder.    Shares Now Getting Traction From The News As we pointed out in another recent edition of the newsletter, sometimes a stock reflects the company's results, and sometimes not. While the share price over the last couple of years may not have reflected Eagle's true value then, we have to think the two are being synchronized now.  We've seen (and blogged) a lot of things coming together for Eagle in just the last month. In our first look, we were impressed by them holding exclusive IPTV-based-delivery rights for over 200 cable television channels. Their IPTV offer became real a few days ago when their Florida reception station was completed, cementing the idea that the company wasn't just hoping or wishing to be an IPTV player - they now have a viable (revenue-driving) product. And today, we're reminded of the strength in one of their other key divisions, as they land a big SatMAX sale to a government vendor.  What's that meant for the stock? Just take a look at the nearby chart. It may seem a bit stagnant or sideways at first glance, but we can also see an important technical barrier has been hurdled - the 50 day moving average line - for the first time in months. It's subtle, yet it's also how all big recovery trends start out...as small recovery trends.  Perhaps more importantly, the stock managed to make the recent move upward in a well-paced manner - not with the wild kind of surge that just invites a big reversal a couple of days later (like the one we may have seen in May). The volume behind the upward push has also started to perk up, and with shares bouncing back from any short-term setbacks with relative ease, it may be a case where investor attitudes are quietly changing for the better here.  Given that shares have rallied from a low of 52 cents on September 26th to 68 cents now (a 30.7% rebound), it's a good bet other traders have already come to a pretty optimistic conclusion. After all, clearly, somebody is buying it. The good news is, there's still tons of possible upside potential for the stock. And, with shares just coming off of multi-year lows, the time may never be more right.    Reseller Purchases Eagle Broadband SatMAX(R) Satellite Communication System  LEAGUE CITY, TX-- Oct 12, 2006 -- Eagle Broadband, Inc. (AMEX:EAG), a national provider of broadband, Internet protocol (IP) and communications technology and services, announced today that one of its largest resellers and a supplier for the federal government has purchased five units of Eagle's SatMAX(r) advanced satellite-communications technology.  Typically, satellite phones must be within line-of-sight access to orbiting satellites in order to operate effectively. Eagle's exclusive SatMAX non-line-of-sight, Iridium-based satellite communications technology enables civilian, government, military and enterprise customers to quickly and easily make reliable, fully wireless, voice and data communications available from any non-line-of-sight, indoor location, including inside buildings or structures, onboard vehicles, aircraft or ships or from other obstructed areas. SatMAX allows users to make multiple concurrent calls within SatMAX-enabled "hotspot" areas from any location on Earth. The technology enables routine, mission-critical and backup communications that can improve safety and security, emergency preparedness and response, user productivity, mobility, problem solving and mission support.  The current purchase includes five of Eagle's Alpha Portable Dual Antenna SatMAX units. The portable handsets are ideal for first-responder and emergency scenarios, along with any application needing portable, seamless satellite communications both indoors and outside.  "The federal government is a market that we are eager to tap," said Dave Micek, president and chief executive officer of Eagle Broadband. "It presents us with some interesting opportunities. Use of our SatMAX product extends beyond the emergency preparedness and response scenario to include military situations that may require both mobility and the ability to communicate from within structures like bunkers or armored vehicles."  For more information on Eagle Broadband, visit www.eaglebroadband.com.  About Eagle Broadband, Inc. Eagle Broadband is a technology company that develops and delivers products and services in three core business segments:  IPTV -- Eagle Broadband's IPTVComplete(TM) provides direct access to more than 200 channels of high-demand programming from popular entertainment providers, often using Eagle's high-definition, set-top boxes.  SatMAX(r) -- Eagle Broadband's SatMAX provides indoor/outdoor communications utilizing the global Iridium-based (http://www.iridium.com) satellite communications system. It offers both fixed and mobile solutions, including the emergency first responder SatMAX Alpha "SatMAX in a suitcase" technology.  IT Services -- Eagle Broadband's IT Services Group is a full-service integrator offering a complete range of network technology products including VoIP, remote network management, network implementation services and IT project management services.  EAGG  Forward-looking statements in this release regarding Eagle Broadband, Inc., are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including, without limitation, continued acceptance of the company's products, increased levels of competition, new products and technological changes, the company's dependence upon third-party suppliers, intellectual property rights and other risks detailed from time to time in the company's periodic reports filed with the Securities and Exchange Commission.  Contact:  Eagle Media Contact:  Jackie Hutto Griffin Integrated Marketing  (281) 335-0200   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 On The Go Now Getting Some Traction It's about time! We've been reporting good news on top of more good news about On The Go Technologies (OTCBB: ONGO) since June. The company has been posting huge single-order sales for months now, which of course is job #1...taking care of cash flow.  The frustrating part for shareholders has simply been how all that good news hasn't really helped shares much. While we are fully aware that 'it happens', it's still an interesting disconnect between a stock and a company, as we described in our October 3rd edition.  Well, sure enough, after we pointed out how shares may be undervalued, the market finally tuned in to see what was going on. Apparently, they liked what they saw. Maybe that's why shares are up by more than 30% since October 2nd. Better yet, this may be a bullish omen of things to come. Volume has been consistently higher than we've ever seen it for ONGO shares, so we at least know the trading interest is there (on one side or the other). Plus, the chart has made some enormous technical progress this month that could point to a bigger recovery move in the works. Specifically, the rally has pushed the stock as high as $3.60, and well past the 50 day moving average line at $3.05. This is the first instance of shares making it above the 50 day line since June, and one of the key reasons we think now could be a new uptrend for ONGO...it has the potential for longevity.  In any case, the stumbling blocks are slowly being knocked out of the way. Savvy traders would probably want to see a couple of closes above the 50 day average, just to see if this new life for shares doesn't lead to the same results as last time; it never hurts to wait for better odds.    Multicell Investor Fact Sheet Now Available  If your interest was at least peaked when we first profiled Multicell Technologies Inc. (OTCBB: MCET) in the September 28th edition of our newsletter, then you'll definitely want to take a little time today to review the company's recently-published investor fact sheet. It includes a detailed description of what they do, research & development highlights, and some perspective on the size of their target market.  Click here to view the PDF document.  And don't forget, we've covered the company twice now. Click here to see the September 28th initial overview, and click here to read our thoughts on the massive number of patents Multicell is working with. Any shareholder - potential or otherwise - is encouraged to do a little of their own due diligence and examine the publication as well as our comments. We think you'll like what you see.    What You Missed By Not Reading The Blog...  We've said it before and we'll say it again, if you're not reading the blog, then you're missing some of our best stuff. Here are just a few of the items we've posted in the last few days... Our thoughts on Google's (NASDAQ: GOOG) purchase of YouTube, and what it might mean for a Ckrush (OTCBB: CKRH) and Web2 Corporation (OTCBB: WBTO). Some perspective on Commerce Planet's (OTCBB: CPNE) pullback on Tuesday. Please, for your own sake, bookmark the blog today, or add it to your RSS feed (which is different than the newsletter RSS).  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! 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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. 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