The Micro Cap Opportunity

02/07/2008
The MCO Daily - Before the Bell for Thursday, February 7th, 2008

On the Radar: RBTI, MMDA, SKMI, SMGH

This morning's top Micro Cap trading ideas include, Red Branch Technologies Inc. (OTC: RBTI), Mega Media Group Inc. (OTCBB: MMDA), SKRM Interactive Inc. (OTCBB: SKMI), Smooth Global Holdings Inc. (OTCBB: SMGH)

Featued Pick
RED BRANCH TECHNOLOGIES INC (OTC: RBTI)
Up 5.56% Yesterday

Detailed Quote: http://finance.yahoo.com/q?s=RBTI.PK

 Red Branch Technologies, Inc. makes business travel easier, more secure and more responsive for both the hard-charging business traveler and the corporation by meeting travel needs at each point in the travel cycle. The company's innovative my/mTravel(r) and mTravel(r) products automate the business travel process from planning and booking to en route services and support, thru post travel reporting and unused ticket redemption. Red Branch's Magellan360 provides agency and net-delivered back office services to independent professional travel marketers. For more information, please visit: www.redbranchtechnologies.com

Recent RBTI News:

February 5th, 2008 - Red Branch Technologies Wholly-Owned Subsidiary, Magellan360, Releases Unaudited Financial Performance for 2007; Revenue Up 12 Percent to $22 Million

Red Branch Technologies Inc. (Pink Sheets:RBTI) today released the un-audited financial performance of its Trava, Inc. d/b/a Magellan360(tm) subsidiary for the 2007 fiscal year as the company prepares to launch its two highly-anticipated online travel products, mTravel(tm) and my/mTravel(tm), into the market. For the 2007 fiscal year ending in December, the Company's Magellen360(tm) subsidiary increased revenues 11.94% to $21,929,702.00, $.238 per fully diluted share, from $19,591,388 or $.212 per share in 2006 (non-GAAP). Gross margins increased 8.74% in the same period to $1,748,798 from $1,608,308, while fixed expenses increased a modest 2.02% to $1,688,198 from $1,654,816 in the prior year period.

Magellan360(tm) supplies full-cycle booking-to-fulfillment technology and services to more than 125 independent travel professionals and agencies nationwide. Magellan's "touchless" on-line fulfillment technology and agent-based transactions demonstrate its market leading technology and positioning, which will be leveraged to provide the foundation for Red Branch Technologies' soon-to-be-launched mTravel(tm) product -- targeting enterprise corporate travel needs -- and my/mTravel(tm) online product, targeting the underserved needs of the independent business traveler. More information about Magellan360 is available by calling (800) 360-6208 or by www.magellan360.com.

Doug Foran, Red Branch President/CEO, commented, "We are extremely pleased with the year-over-year financial performance of Magellan360(tm). While 12% organic top-line sales growth and only 2% growth in expenses for '07 is solid to say the least, the standalone business is well positioned to dramatically increase revenues and earnings power in the coming 12-months as we add new affiliates into the system, institute new pricing actions and grow fulfillment fee revenue from our new mTravel(tm) and my/mTravel(tm) products when they launch. It is even more encouraging that, going forward, Magellan360(tm) is projected to represent only a small fraction of the revenue and earnings opportunity for the Company. In short, 2008 promises to be a break-out year for Red Branch Technologies and its shareholders."

MEGA MEDIA GROUP INC (OTCBB: MMDA)
Up 43.75% Yesterday

Detailed Quote: http://finance.yahoo.com/q?s=MMDA.OB

Mega Media Group, Inc. (MMDA.OB) is a multi-media and entertainment company whose divisions offer a broad range of services, including corporate and celebrity branding, talent management, music production and distribution, video production and distribution and radio broadcasting.

Recent MMDA News:

February 6th, 2008 - Mega Media Group Announces the Launch of Pulse 87 Radio Station for February 11th and the Hiring of New Program Director for Pulse 87.7 FM

Pulse 87.7 FM, the rhythmic top 40 station will be launched by Mega Media Group (OTC Bulletin Board: MMDA) (www.megamediagroup.com), on February 11th at 6am, the station will feature the Highly popular Star & Buc Wild Morning Show which will debut on February 18th weekdays from 6 to 10am and today's top music hits. Joel Salkowitz will become the station's program director.

Industry Veteran Joel Salkowitz To Lead Station

Salkowitz is a veteran major market programming and operations executive, who recently served as Vice President of Music Programming and Content at Sirius Satellite Radio. Prior to joining Sirius, Salkowitz was with Clear Channel Communications as a Format Director and Brand Manager overseeing the launch and programming for 10 major market stations, as well as serving as Program Director for JAMMIN 105 -- New York (WTJM-FM). His past experience also includes management, production and programming positions at Fox Television, E.M.I. Records, Westwood One, ABC Radio, NBC Radio and Emmis Communications. As Regional VP of Programming at Emmis' HOT97 (WQHT) in New York, he helped develop the Rhythm Top 40 format that dominated contemporary radio during the late 1980s and early 1990s and was also responsible for overseeing programming at Emmis' WAVA (Washington DC) and WLOL (Minneapolis).

Commenting on the announcement, Mega Media Group CEO, Alex Shvarts stated "I am pleased that Joel is leading our radio team. His wealth of experience with building stations and managing major market radio personnel will prove invaluable to the launch of Pulse 87."

Also commenting on the announcement, Salkowitz said, "I am excited to be a part of a new, independent radio business that I can help to grow from its very inception. It will be especially gratifying to work with Star who is one of the top morning talents in the country and who was able to have such a huge impact on not one, but two radio stations in New York. He's a one-of-a-kind personality and together with a unique music format, we're going to give New York something to get excited about on the radio again."

SKRM INTERACTIVE INC (OTCBB: SKMI)
Up 60% Yesterday

Detailed Quote: http://finance.yahoo.com/q?s=SKMI.OB

Sector 10's focus is on predeployed emergency response systems. Predeployment is the advance placement of resources needed in an emergency event. These unique products represent a new product category for brand development and promise to fundamentally change the way emergency response is approached. As support services to its core product line, Sector 10 is providing advertising and messaging services and leasing options to its customers, which can off-set or entirely remove the cost of installing a system.

Recent SKMI News:

February 6th, 2008 - Update: Sector 10 Selects Capital Group Communications as Investor Relations Agency of Record

SKMI/Sector 10 (SKRM/Sector 10) (OTC Bulletin Board: SKMI) today announced it has selected Capital Group Communications as its investor relations agency of record.

Sector 10 designs and builds public emergency response systems that provide immediate access to life-saving resources in the crucial hours immediately following an emergency event. Sector 10 is working to redefine the emergency response paradigm from centralized equipment staging to onsite predeployment, and is the only emergency response systems company so strongly emphasizing predeployed resources as the way to save lives and reduce liability.

Capital Group Communications (CGC), headquartered in the San Francisco Bay area, specializes in strategic, streamlined communications services aimed at increasing awareness directed at Brokers, Analysts, Institutions and Fund Managers. CGC utilizes a long-term, collaborative business model and accepts only restricted stock, in lieu of cash fees, for its services.

"CGC is delighted to represent Sector 10 as the company forges into the public market," said Devin J. Bosch, CEO of Capital Group Communications, Inc. "Based on their compelling business model and technology, we believe the company has an excellent opportunity in an ever expanding security sector. Our CGC goal is to introduce and communicate the Sector 10 story and underlying fundamentals in a manner that is honest, timely, reliable, and most importantly, 'effective.' By working closely with a broad spectrum of financial professionals, we provide a reliable, realistic and consistent strategic communications program. This inevitably leads to a synergistic marriage between our client's successes and the achievement of our company milestones. Together we look forward to gaining a strong footing in the Financial markets. We look forward to a long relationship communicating Sector 10's value-proposition to the investment community."

"We are pleased to be associated with a firm of the quality of Capital Group Communications," said Pericles DeAvila, Sector 10 Founder and CEO. "We look forward to working closely with CGC to tell our story to the investor community and we are confident of great things to come."

SMOOTH GLOBAL HOLDINGS INC (OTCBB: SMGH)
Up 23.64% Yesterday

Detailed Quote: http://finance.yahoo.com/q?s=SMGH.OB

 Smooth Global (China) Holdings, Inc. was organized under the name Bralone Mining Company (the "Company") under the laws of the State of Nevada on December 2, 1998. On November 2, 2006, The Company acquired all of the outstanding capital stock of Gold Profit (Asia) Group Limited ("Gold Profit"), which owns 100% of the registered capital of Beijing Quan Tong Chang Information Service Limited ("Beijing QTC"). Beijing QTC is a telecommunications service provider to deliver economical voice and data services domestically and internationally throughout China. It engaged in the business of distributing telephone services through public pay phones and is also in the business of developing Internet phone solutions for commercial customers, focusing on a convenient local, domestic and international long distance call service with competitive price. On July 31, 2007, it changed its name to Smooth Global (China) Holdings, Inc. The Company contracted with the subsidiaries of China Netcom Group Corporation (Hong Kong) Limited (NYSE: CN), namely China Netcom (Shaoxing) Corporation Limited and China Netcom (Guangdong) Corporation Limited to distribute their VoIP call time in China. On October 24, 2007, the Company acquired 100% equity interest on Smooth Global Services Limited, which holds Beijing GRT Information Services Limited ("Beijing GRT"), a company providing International Call Forwarding Service ("ICFS"). Beijing GRT entered into the international call forwarding business by obtaining a license from China Netcom (Group) Company Ltd. Shanghai Branch and a license from China Netcom (Group) Company Ltd. Shaoxing Branch. The licenses were acquired in connection with the purchase by Beijing GRT of 2000 local telephone numbers. The licenses provide that the carriers will facilitate the international call forwarding business of Beijing GRT by (1) waiving all monthly fees for the company's local numbers, (2) guaranteeing Beijing GRT its lowest per-unit fee, and (3) assuring Beijing GRT that it will retain the local numbers for at least three years. The Company will focus international call forwarding to its lines of business.

Recent SMGH News:

February 5th, 2008 - Smooth Global (China) Holdings, Inc. to Sign Letter of Intent Acquiring a Network System Integration Company in Beijing to Strengthen Its Network Technology and Client Base

Smooth Global (China) Holdings, Inc. (OTC Bulletin Board: SMGH) ("Company"), a leader to provide value-added voice telecommunication service in China, announced today that the Company has signed a letter of intent with Beijing Network Education Union Co. Ltd. ("BNEU") to acquire its 100% equity holding in exchange for 14,850,000 shares of common stock of SMGH from the majority shareholders of SMGH with no dilution to the outstanding shares of (OTC Bulletin Board: SMGH).

BNEU was established eight years ago, and specializes in various large scale network system integrations. It has owned approximately 50 different software for the application ranging from education, hotels, public security, commercial, knitting industry and video streaming. BNEU has successfully offered its service to finish some large and medium value added communication application projects. It has an unaudited net asset of $9 million. For the year ended 2006, it recorded an unaudited revenue of $4.6 million with net income of $1.8 million under the Chinese accounting principle. For the year ended 2007, it recorded unaudited revenue of $11.8 million with $5 million net income under Chinese accounting principle.

BNEU's major projects include "Caring The Next Generation" scientific baby education which will be commonly used in all kindergartens and babies in China. It also target on the development of commercial internet application projects and digital video industry network project.

Ms. Zheng Shuying, President of SMGH, commented, "We are very excited to sign the letter of intent with Beijing Network Education Union Co. Ltd., a very important milestone in complementing our business strategy. The acquisition of BNEU extends our strategic footprint and widens our value-added products on telecommunications. We will keep our eyes opened to seek any suitable business that we can merge with to further extend our products; and to improve our position as leading company for value-added voice telecommunication service in China."

Smooth Global (China) Holdings, Inc. plans to have this acquisition completed before the end of March, March 31, 2008.

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