In This Edition...

Remember what I said about a week ago regarding Voyant's RocketStream? After the company announced their technology was being used to deliver television footage of the Olympics to Taiwanese viewers, I repeated something I've said several times now.... there's a market for this product. I've added another piece of evidence to my thesis today. We'll get to that first. 

After that, I want to dive deeper into a topic I touched on briefly in the blog Friday...hot sectors and industries (specifically from the small cap world). For some reason that sparked something with those who saw the comments in the blog, so I'll give it a little extra attention this morning. 

I'll wrap up with an addendum to Thursday's announcement from Applied DNA. I forget that many of you may have gotten on board the Small Cap Network train after our coverage of APDN started. As a result, I didn't mention something I errantly assumed everyone knew. My bad. It's a positive addendum though, so current or potential fans of the company will want to check it out.
 

	Voyant Customers Are Starting to Form a Line

Voyant International (OTCBB: VOYT) has yet another customer for its RocketStream technology. Another television company - Asia Broadcasting Television Company, Ltd. - has chosen RocketStream as the platform with which they'll send and receive digital television content. 

The news in itself isn't a huge deal - the plan all along was to start marketing RocketStream to organizations that need the ability to electronically send increasingly-large files. The common HTTP and FTP protocols just can't handle the workload now that we have the uncanny ability to create digital television content. So, adopting RocketStream was just the natural progression of things.

No, the 'big deal' is that this is the fifth RocketStream customer added in just the last three months. And, that doesn't count the new partners who've added RocketStream to their own software suites, or have become re-sellers.

I'll repeat something I've said previously because I think it bears repeating ....the pace of RocketStream's growth is quickening. All those seeds Voyant planted one and two quarters ago are starting to sprout. The whole time, they're also planting more seeds. The ball's really starting to roll.

As usual, the press release has no details in terms of revenue. All I can do is look back to the previous quarter and tell you they did $133K in revenue - mostly in RocketStream sales. The quarter before that, they pulled in about $15K in revenue, also mostly from RocketStream sales. Here's the thing though....the quarter they did $133K in business ended on June 30th. Three of the five RocketStream customers I mentioned above were announced after June 30th. 

I'm sure every deal is different, and I'm guessing there may be other smaller customers we don't hear about. But, so far, the math looks even more favorable for the current quarter's numbers. 
 

	The Next Big Thing in Small Caps?

If you didn't catch Friday's look at the small cap world's best and worst-performing industries, you may want to check out that blog entry. The look was a 'data only' look, but from that top-down approach I've found a few interesting trends which may not have appeared otherwise.

Having had a weekend to dig further into the data, for one reason or another the charts of a few small cap indices caught my eye. Most of them appear on the nearby image.

In a nutshell, I found them all to be interesting because they'd been beaten up so badly over the last several months .....I like values. Just as important though, they've each started to perk up quite a bit since early July - much more so than most of the market anyway.

From top to bottom, I'm now eyeing internet & catalog retailers, chemicals, telecom, and food distributors.

Remember though, these trends strictly represent the small caps within these groups; you may not find the same kind of performance from large caps or mid caps in the same industry.

Like I said, I'm just drilling down. Where there's smoke there's fire though, meaning these indices are making their way higher because at least some of the underlying stocks are making progress.

I'll try and wade even further into this pool and see which stocks are the 'best of the best'. But, frankly, you may find something trade-worthy in these industries before I get to it.
 

	Applied DNA's Technology Not a Mere Toy

Several of you had a great point and question about Applied DNA's (OTCBB: APDN) anti-counterfeit technology after we published Thursday's piece about counterfeit wine. The heart of the matter was this ...whether Applied DNA's technology works or not is irrelevant if the test's results aren't of a forensic quality (i.e. can't be admitted as evidence in a court case).

I have two things to say about that. One, the technology works, and two, yes it is a forensic-caliber test...and will be admissible in a court room. That applies to everything related to SignatureDNA (which is mostly product labels), as well as their fiber-typing technology (which was born from the Supima project). 

The company's BioMaterial Genotyping ability had never really been put into the limelight until last week, in conjunction with CEO James Hayward's NPR interview. I double-checked with the company to make sure this technology was also forensics-friendly, and their answer was yes.

Just so you know though, the forensics test requires lab work. The field test that uses the hand-held scanner, or the pen/marker that can test a product tag, are effective at spotting fakes. However, the tag or label would have to go back to the lab to perform the court-admissible test.

Now, as far as the wine test goes....

There was a question as to whether or not the test would actually be able to distinguish a wine's geographical origin if the grape in question was the same variety of grape also grown somewhere else. The answer from Applied DNA was again yes, they could still make the geographical distinction. 

As for the 'how' and 'why' they could do this, I'll have to get back to you later with the scientific answer (when they get back to me - I guess it's a fairly complex explanation). Maybe they're looking for more than just DNA. Either way, I'll let you know. In the meantime, yes, the wine/grape origin test can indeed work just the way they described it.

Here's the Voyant press release... 
 

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