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 [IMAGE] Dow Jones [IMAGE] 9730.96  + 17.16  6:08 pm EST, Wed., January 23, 2002  [IMAGE] NASDAQ [IMAGE] 1922.38  + 39.85  For info, visit www.smallcapnetwork.net  .  [IMAGE] S & P 500 [IMAGE] 1128.18  + 8.88  To be removed, please click here  .  [IMAGE] Russell 2000 [IMAGE]    477.45 + 8.02  VOLUME 02: ISSUE 7 	
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 IPOs: Used To Abuse   Yesterday, Credit Suisse First Boston, one of the most respected firms on Wall Street said it will pay U.S. securities regulators $100 million to settle charges of using abusive practices to allocate shares in initial public offerings (IPOs).    In a statement issued by Stephen Cutler, Director of the SEC's Division of Enforcement, "CSFB improperly took advantage of its position as underwriter by allocating shares of hot IPOs to customers who agreed to share their IPO profits by paying excessive commissions."    CSFB made $718 million underwriting technology IPOs in 1999 and 2000.  The firm will pay a $30 million fine and hand over $70 million in profit to resolve charges of "abusive IPO allocation practices". The SEC and the National Assn. of Securities Dealers alleged that CSFB illegally profited on hot IPOs by charging commissions of as much as $3.15 a share, compared with a typical rate of 6 cents.   The SEC also is probing whether firms such as Morgan Stanley, Goldman Sachs, Robertson Stephens and J.P. Morgan, received pledges from customers to purchase more stock after IPOs began trading.    The large investment banks' pain will most certainly turn out to be a gain for some.  Our next profile is one of the beneficiaries of not going through a traditional IPO.  We are extremely proud to have found this gem.  The company will be going public through an RTO, and it will open for trading on the American Stock Exchange. Unfortunately we do not have an exact date on this new issue but it is safe to say that the first week of February will be the time frame for the stock to open for trading. You can learn more about RTOs in our January 16th edition  of the SmallCap Digest.   We cannot announce the name of the company at this time but we can tell you it is a medical device manufacturer already generating significant sales in the U.S. and abroad. The company expects to turn cash flow positive this year and has a tremendous pipeline of products. This company is a "pick & shovel" entity that is helping to power the biotech revolution.    This company has already been featured on a special segment on Good Morning America.  In addition, their shareholders include some of the smartest money on the planet. Because this company will not be going public through the traditional IPO, all open market investors will be on an equal playing field once the stock begins trading.    The even playing field provided by an RTO is a breath of fresh air in an industry marred with improprieties.  The SmallCap Digest will immediately send out our profile on the company once it is opened for trading. For the most up to date alert on this new profile, we suggest our subscribers visit our home page. There we will provide the name, symbol and current quote of the company the moment the stock begins trading.    Remember that although all the facts and figures will be provided to you so that you may make an informed investment decision, you should still make an effort to confirm all information through independent third party sources, i.e. the SEC Edgar filings and the company's web site.     	
 D I S C L A I M E R :[IMAGE] The SmallCap Digest is an independent electronic publication committed to providing our readers with factual information on selected  publicly traded companies. SmallCap Digest 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, this publication accepts compensation from third party consultants and/or companies which it features for the publication and circulation of the SmallCap Digest or representation on SmallCapNetwork.net.  Likewise, this newsletter is owned by TGR, LLC.  To the degrees enumerated herein,  this newsletter should not be regarded as an independent publication.   Click Here  to view our compensation on every company we have ever covered, or visit the following web address:  http://www.smallcapdigest.net/compensation_disclosure.html  for our full compensation disclosure and http://www.smallcapdigest.net/short_term_alerts.html  for Trading Alerts compensation and disclosure.   All statements and expressions are the sole  opinions of the editors and are subject to change without notice. A profile, description, or other mention of a company in the newsletter 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 editor, members of the editor's family, and/or entities with  which the editor is affiliated, 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. The profiles, critiques, and other editorial content of the SmallCap Digest and SmallCapNetwork.net may contain forward-looking statements relating to the expected capabilities of the companies mentioned 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 THE EDITORS OF SMALLCAPNETWORK.NET.   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. 	

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