Dow Jones 10891.92 +0.00 6:10 pm PDT, June 12, 2006 NASDAQ 2135.06 +0.00 For info, visit access.smallcapnetwork.com S & P 500 1252.30 +0.00 Change your subscription status here Russell 2000 701.39 +0.00 VOLUME 06: ISSUE 45 Is the Donald Being Trumped? Move over 'American Idol' - there's a new television show that puts the 'real' back in reality TV. This morning, Clearly Canadian (OTCBB: CCBEF) announced the story of their rebirth will be documented within a new reality television series. The producer of the new show is none other than Nick Davis Productions. If the name sounds familiar, it should - this is the same Nick Davis that produced several television shows for Lifetime, ABC, UPN, VH1, and USA just to name a few. Needless to say, the guy knows what he's doing. As for Clearly Canadian, the opportunity is obvious. This is the kind of exposure you couldn't pay for even if you wanted to. Less Is More Let's face it...'word of mouth' is the most effective and powerful form of publicity any organization can ask for. We've collectively learned to tune out TV advertisement, or have our TiVo's skip them altogether. In simplest terms, the consumer has been trained to use television commercial time to do anything except pay attention to commercials. That's tough for advertisers, especially when TV spots used to be so cost-effective. Ironically, the most powerful promotional messages are now the ones integrated directly into the entertainment. It works, too, whether or not the promotional nature of the message was intentional. One example of this is the television show 'American Chopper', appearing on the Discovery Channel. What started out as a documentary series on a father/son custom motorcycle shop turned into a gold mine for their business. Overnight, everyone knew what the duo did, and what their bikes were like. The business could have never afforded to buy an hour's worth of television commercials every week. But with the hour-long show, they got something even better.....free advertising and a captive audience. Or does anybody remember the famed introduction of BMW's Z3 a few years ago? It was popularized before it ever actually became available for public purchase. How? It was the same car driven by James Bond in the movie 'GoldenEye'. After the movie was released, the anticipation, discussion, and sheer wonder about the car was more hype than the BMW company could have ever mustered up through conventional advertising. So when we learned Clearly Canadian was going to be featured as the subject of a new reality show, we also had to start thinking this could take the company to the next level (in a proverbial sense). After all, look at the bare minimum benefits of the show: The phrase 'Clearly Canadian' will be repeated dozens of times each episode The Clearly Canadian product line could be introduced to millions of viewers who may not be familiar with their products Regular watchers of the show will start to feel a vested connection with the company (And if you don't think it happens, how many of us who watched 'The Apprentice' or 'American Idol' didn't have a favorite we discussed at the water cooler the next day?) The term 'less is more' is simply a fitting description for the company's involvement with the show. In other words, it's just a matter of quality versus quantity. The quantity of dollars spent for this kind of publicity will be squat, while the quality of this kind of publicity will be priceless. Everyone Loves A Winner Ever wonder how the NBA's famed Michael Jordan made his millions? The immediate answer might be he got it all by playing great basketball. Well, there's no doubt he made plenty of dough being a great a basketball player - probably the best ever. He was the NBA's Most Valuable Player five times, led the Bulls to six NBA Championships, and led the league in scoring in ten different seasons. Or to put it another way, they guy was a winner, plain and simple.....but that's not quite how he made his fortune. He made a big chunk of his fortune by capitalizing on his winner status. Surely nobody really thinks Michael made all those high-top sneakers himself, nor that he's an expert on men's fragrances. The thing is, it didn't matter during the 80's and 90's. In the era when everyone wanted to be like Mike, everyone was also willing to pay just about anything to be like Mike. Why? People love winners. People want to be associated with winners. People will buy what winners tell them to buy. (That's why I still have a pair of Air-Jordan shoes boxed up in my closet.)  Our regular readers will know what kind of progress Clearly Canadian Beverage has already made in the last few months, not to mention the big plans they have for the future. By the virtue of being included on our watch list at all, the company is doing something compelling. However, the story just can't be fully told in this electronic medium, even with our best efforts. Besides, as popular as this website is, the reach of television is far greater. In that light, we're thrilled the company's turn-around story is going to be detailed over the course of a television season. Or as producer Nick Davis describes it, it's a Cinderella story. Either way, when this show finally airs, a heck of a lot more people are going to know how Clearly Canadian is reinventing itself as a winner.  Don't misunderstand us. We're not saying Clearly Canadian is becoming a legendary sports figure looking to venture into athletic gear or television broadcasting. And as much as we'd like to see Clearly Canadian President Brent Lokash go one-on-one against Michael Jordan, that's not going to happen either. We're just saying there's a strong parallel between Michael Jordan and Clearly Canadian, in that both are winners. Once the Clearly Canadian reality show is broadcast, the company is going to have a lot more 'winner' muscle to flex. Bottom lines should be improved as a result. A Shareholder's Perspective As an investment, the last few weeks have been more than satisfying for owners of CCBEF. Our coverage started in mid-March when the price was $2.55. Friday's closing price of $3.07 represents a 20.4% improvement since then, thanks to new interest in the opportunity. But the renewed strength isn't hollow; the company has achieved results deserving of that kind of return. For instance, in May, the company produced year-over-year double-digit revenue gains...for the first time in five years.  And since January, the company has made some major top-level management changes - all for the better. So no, we're not surprised about the gain. Over the last three days, the stock has leveled off from its recent 52-week peak of $3.12. In the bigger picture though, the mild pullback to the current price of $3.07 is minimal compared to the bullish 50-cent move we've seen in just a few weeks. In fact, there seems to be some support around the 3x3 displaced moving average. More than that, as we pointed out in the last bog entry, the rallies are all occurring on higher volume while the dips are all on lighter volume. If anything, this slight pullback may be a pretty nice entry point, especially in light of today's news. We had initially batted around a mental target of $3.30 for CCBEF. Now though, the goal seems a little low. The company is doing everything right, and the marketplace is responding as if they like it. Plus, this stock was trading as high as $268 in the early 90's (seems unbelievable, doesn't it?) Stocks can rise as quickly as they fall, and if the company stays on its present course, it could eventually fully reclaim all of that lost ground. That's a loooooong term look though. All the same, the $3.30 target is looking more and more like it's not aggressive enough. We'll have more thoughts on our target when and if we get there.     PRESS RELEASE CLEARLY CANADIAN TELEVISION SERIES; Reality Television Meets Wall Street VANCOUVER, B.C., June 12, 2006 -- CLEARLY CANADIAN BEVERAGE CORPORATION (OTCBB: CCBEF) Television viewers love underdogs and have developed a growing infatuation with the business world.  Renowned Manhattan-based Nick Davis Productions (NDP) is looking to match these two national obsessions into a non-fiction reality series following the incredibly, engaging tale of Clearly Canadian as it moves toward its goal of regaining prominence in the alternative beverage industry.  Not only will this series enthrall viewers from the first episode, it will undoubtedly redefine business reality television. Filming for the premiere episode of "Clearly Canadian: Reality of a Turnaround" recently commenced in Ft. Lauderdale, Miami, and Vancouver. The pilot episode will focus on the creative corporate maneuverings (and sometime humorous attempts) employed to revive the fortunes of this once mighty beverage company.  Stated Brent Lokash, President of Clearly Canadian: "This proposed series is both exciting and yes, a little scary at the same time. The massive exposure of the brand and product lines to a national television audience in the tens of millions is exciting. The fact that we have little room for error and our moves will be documented for all to see is scary; however I am confident that we have the right team in place to execute our initiatives". Nick Davis Productions is currently producing THE CHIEF for Court TV, and is also developing a top-secret pilot for Turner Classic Movies.  NDP is also the creator of the Award-winning Court TV series Stories of the Innocence Project and has produced and developed shows for Lifetime, Bravo, ABC, UPN, Discovery, VH1, A&E, USA, and Sci-Fi Channel. Back to the Flavor The thrust of the Clearly Canadian story is simple, yet fascinating. Can this once super growth Company turn itself back into a winner and meet or exceed its past dominance within a total $63 billion beverage market, specifically in the alternative beverage sector it pioneered 20 years ago? To date, Clearly Canadian has sold in excess of 2 billion bottles of its unique naturally, flavored waters. Producer Nick Davis notes: "As the story of Clearly Canadian unfolds, viewers will experience what could truly become a modern-day Cinderella story.  Unlike shows such as The Apprentice, the people, the business and the deals are real and massive amounts of money are on the line.  Until now, there's never been a show that takes us behind-the-scenes of a real company trying to succeed. This full-access reality series will honestly portray all the corporate drama, the financial intrigue, deal-making and pressure that exists in the high stakes corporate world."     About Clearly Canadian Based in Vancouver, B.C., Clearly Canadian Beverage Corporation markets premium alternative beverages and products, including Clearly Canadian® sparkling flavoured water and Clearly Canadian O+2® oxygen enhanced water beverage which are distributed in the United States, Canada and various other countries.  Since its inception, the Clearly Canadian brand has sold over 90 million cases equating to over 2 billion bottles worldwide. Additional information about Clearly Canadian may be obtained at www.clearly.ca. CLEARLY CANADIAN BEVERAGE CORPORATION ___________________________________ Brent Lokash, President Forward Looking Statements Statements in this news release that are not historical facts are forward-looking statements that are subject to risks and uncertainties.  Words such as "expects", "intends", "plans", "may", "could", "should", "anticipates", "likely", "believes", "estimates", "potential", "predicts", "continue" and words of similar import also identify forward-looking statements.  Forward-looking statements are based on current facts and analysis and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management, including, but not limited to, the Company's belief that Clearly Canadian has the right personnel to execute on its stated strategic initiatives, including the launching of innovative new products and the leveraging of the brand equity of Clearly Canadian.  These assumptions are subject to many risks, and actual results may differ materially from those currently anticipated.  These risks include, by way of example and not in limitation, general economic conditions, changing beverage consumption trends of consumers, the Company's ability to generate sufficient cash flows to support general operating activities and capital expansion plans, competition, pricing and availability of raw materials, the Company's ability to maintain the current and future retail listings for its beverage products and to maintain favorable supply, production and distribution arrangements, laws and regulations and changes thereto that may affect the way the Company's products are manufactured, distributed and sold and other factors beyond the reasonable control of the Company. Additional information on factors that may affect the business and financial results of the Company can be found in filings of the Company with the U.S. Securities and Exchange Commission and with the British Columbia and Ontario Securities Commissions.   For further information please contact: Shareholder Relations/Steve Cook (e-mail:  investor@clearly.ca) 1 (800) 983-0993 CLEARLY CANADIAN BEVERAGE CORPORATION is the registered holder of various trademarks, including CLEARLY CANADIAN®.  CLEARLY CANADIAN BEVERAGE CORPORATION, and its wholly owned subsidiaries, produce, distribute and market CLEARLY CANADIAN® and CANADIAN O+2®.       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 No Confidence in Consumer Confidence Some of the recent market weakness has been blamed on the Conference Board's Consumer Confidence reading for May. The score of 103.2 wasn't as low as the prediction of 100.7, but it was still a disappointing tumble from April's reading of 109.8. You didn't have to look far to find plenty of pundits citing this as the evidence of even further gloom and doom for the market. Our take, however, is you may be better served by ignoring the data altogether - it's been close to useless for investors of any time frame. Just for some perspective, April's Consumer Confidence score of 109.8 (released on April 25th) was almost a four-year high. The media touted it as a time and reason to buy stocks. The market is down between 3% and 8% since then, depending on the index. So, clearly it was not a time or reason to buy stocks. Conversely, last October's reading of 85.0 was a multi-month low. Had investors shed stocks because of poor confidence levels, they would have missed out on one of the best rallies we'd seen in months. Yet, advisors of all sorts were steering people clear of the market. The point is, don't get bogged down by data that doesn't actually have an impact on stocks. Not only is it not always helpful, in many cases, it's downright misleading. Confidence tends to be worst at short-term bottoms, while it tends to be very strong at short-term tops. As investors, we're often told quite the opposite. Don't get sucked into a theory unless you know the true historical results - not just the premise. In this case, the slight dip in May's confidence level doesn't really mean much of anything.   Verizon Staying Aggressive In last Friday's edition of SmallCap Digest, we looked at Verizon's (NYSE:VZ) push for government permission to offer cable television service via their current infrastructure. However, the company isn't going to rely on that initiative alone to enter into the next phase of their existence. In short, the company is going ahead with a plan to replace their current copper wire lines with fiber-optic lines. The technology is expensive, and the plan may even seem a little premature - especially if the government doesn't approve the cable TV deal. What makes Verizon a standout, though, is no other major carrier is taking a chance on laying new fiber-optics yet.  Investors haven't been happy with the Verizon decision, either. The stock is currently near $31.50, well under March's high around $35.00, and way under the peak around $42.00 we saw in late 2004. Yet, the company continues to be aggressive, and forward thinking.  We have to admire guts, but quite frankly, this move is also about as smart as it is gutsy. Although fiber-optic lines are more expensive (and not in major use in all markets yet), they are still the future, by their virtue of being smaller, cheaper, and more effective at delivering all sorts of data. Our take is simple - it's more a question of 'when' instead of 'if'...fiber-optic and light transmission technologies are going to become standard. So, once the 'when' is defined, we expect Verizon to be rewarded handsomely for having the infrastructure ready to go. Verizon shares could make for an interesting addition to long-term portfolios, especially as de-valued as they are now. The interesting part is, even with the major cash outlay, the company's fundamentals remain impressive. 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! For web based email addresses, the SmallCapDigest 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 SmallCapDigest, simply follow the instructions located at the bottom of every SmallCapDigest Newsletter Edition. 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 $30,000 and pledged 150,000 warrants with an exercise price of $2, currently convertible into restricted shares of Clearly Canadian, by Level III Research, for its coverage of Clearly Canadian. 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 SCD 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 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.