Dow Jones 13427.73 +90.07 4:16 am PDT, June 28, 2007 NASDAQ 2605.35 +0.00 For info, visit access.smallcapnetwork.com S & P 500 1506.34 +0.00 Change your subscription status here Russell 2000 838.46 +0.00 VOLUME 07 : ISSUE 63 Yahoo Teams Up With Stockgroup Wow! Or, maybe it would be more correct to say 'Yahoo!', particularly if you're a shareholder of Stockgroup Information Systems (OTCBB: SWEB). Just a few moments ago, we heard some news I personally believe may mean a monumental victory for the company.....and I'm not exaggerating. They're partnering up with one of Canada's highest-trafficked websites, and ultimately will be able to direct much of that traffic back to their own site, StockHouse.com. Since 'clicks=cash' for an ad-driven site like StockHouse, a lot more clicks is likely to mean much bigger top and bottom lines.  The 'big' Canadian partner site? Yahoo! Canada. And yes, this is the Canadian version of the same Yahoo.com site most all of us have come to know and love....and frequently visit. The parent company of Yahoo! Canada is of course Yahoo! Inc. (NASDAQ: YHOO) - a company that did a mere $6.4 billion in sales during their last fiscal year. Profits came in at a little more than $750 million. Now this behemoth of a search engine wants to establish an alliance with Stockgroup...a company that did about $14 million in sales last year (between the company's organic sales and the sales done by the company they acquired in January).  Do I even need to say it? Sharing a tiny fraction of Yahoo's business may be a drop in the bucket to Yahoo, but it could be a windfall for Stockgroup. Though there are no numbers associated with the news (at least not yet), this might provide some perspective for you.....a mere 0.5% of Yahoo's sales from last year would equal $32 million, which is more than twice what Stockgroup did last year. Like I said, I don't have any details on what this could mean for the company, but I'm comfortable saying this has monster-sized potential.    Details Of The Deal I've obviously got some thoughts on the matter, but let's look at the particulars first.  There are actually two ways Stockgroup can win in this deal. The first is, a substantial portion of the investment commentary and content you'll find at StockHouse.com will now be displayed on the Yahoo! Canada Finance home page. If anybody wants to read anything beyond the headlines, they'll have to click through to go to the StockHouse site. That's traffic, which like I mentioned above, eventually translates into ad or subscription revenue. How much more traffic can they expect? I've got some basic data below. The second way StockHouse can monetize this relationship is with 'contextual search'. That's just a $10 word meaning the ads displayed on a search engine or portal page are relevant to the subject of the web search being performed. Yahoo's got an effective contextual search functionality, while Stockhouse has a highly-defined (investment oriented) group of web users. Yahoo's content-matching functionality is going to be built into the StockHouse site, and the two companies are going to share any ad revenue.    Not So Random Thoughts My reaction to the announcement? I've personally liked Stockgroup from the beginning of our coverage in January. But, if there was ever a sure-fire clincher I think other investors could point to and say "Now I'm convinced", I think this could be it.  With a web-based business, there are really only two primary tasks....to (1) attract new traffic, and (2) keep those users coming back. Everything else is just details. So, the question is, how well will this partnership help Stockgroup do one or the other? Well, I did a little digging, and found some interesting data nuggets.  Alexa.com is a web-page popularity scoring site. They monitor web traffic globally, and assign scores to a site based on how much traffic each individual site generates. Care to guess who's number one in terms of global traffic according to Alexa? It's Yahoo. Care to guess which site is ranked number three for Canadian traffic? Again, it's Yahoo. And where does StockHouse.com currently rank according to Alexa? Its score 11,661 (or 9554 for StockHouse.ca). Though both of those scores are still impressively high in the grand scheme of things, the potential traffic boost from the Yahoo! Canada Finance site stands to be enormous. What about keeping the attention of that traffic once Yahoo send them their way? Well, actually, Stockgroup really doesn't need any help there. StockHouse.com is already the second 'stickiest' Canadian website, and is ranked as the number one (Alexa) Canadian site for retail investor-generated content. StockHouse's BullBoard.com is the top-ranked investing board in Canada, and ranks in the top five financial communities in North America. And (drum-roll please), StockHouse.ca is ranked number one in Canadian user page views. The point is, with more eyeballs on the site, the more ad revenue that's created. I really believe this is a big win for everyone involved, though I also think Stockgroup stands to gain the most. Two other things I can't get out of my head about why this news should be huge.....  (1) Anybody care to guess why Yahoo wanted to partner up with an existing site rather than building a comparable one of their own? I think there are two reasons. One is, I feel Yahoo recognizes the value of pre-existing communities. Any similar new site is going to have a tough time attracting users away from an already-active user content site like StockHouse. The nice irony is, the bigger StockHouse.com gets, the harder it will be for competition to pop up. That allows Stockgroup to enter similar deals in the future on their own terms. The second reason....I think Yahoo just sees how cool the entire StockHouse platform is, and understands they probably can't top it. (2) With Yahoo! Canada bringing Stockgroup into the fold, can other country-specific Yahoo! sites be far behind? I know why Yahoo! Canada was interested in the deal - StockHouse basically owns the financial Internet space in this geographical market (and even more-so, now). But, with the platform already in place, I can't imagine that it would be hard to add other foreign markets/exchanges to the mix. If this partnership goes as well as I think it could, maybe we'll soon see StockHouse.com content on other countries' Yahoo! sites.    Look Out Above! After yesterday morning's news pushed SWEB shares 9% higher by the time the closing bell rang, I was impressed. Not only was the uptrend reignited, but it was reignited with heavier volume. That news and one-day pop alone may have been able to prod a bullish spree for a few more days.  All I can say now is, I hope you were listening, and took advantage of our comments when you got them. I don't know where this stock's going to open or go to today. However, I have to think this is going to have an even bigger impact than yesterday's news of the deal with Reuters. In other words, I expect SWEB to be off to the races.  The lesson to be learned is simple - good companies almost always come through for you, and often, their charts will let you know when something like this is on the way. Stockgroup's chart started giving us upside hints ten days ago.....something I blogged on the 15th.  Anyway, if this is indeed your 'clincher', you may have to make some decisions regarding any entry. Most all of you know I'm not a big fan of chasing stocks, but sometimes, you might not get a second chance. Our suggested target is still $2.00. Obviously getting in at $1.05 would be better than getting in at $1.15, but I'm not sure I'd be willing to pass up an $0.85 cent gain just to save $0.10 on the front-end. Or, who knows....maybe anybody who's interested will get lucky and not have to make that decision.  I'll try and blog something shortly after the open, once we see the early action.    Stockgroup Enters Into Deal With Yahoo! to Help Investors Improve Their Success in the Stock Market  TORONTO, ONTARIO -- (MARKET WIRE) -- Jun 28, 2007 -- Stockgroup Information Systems Inc. (OTC BB:SWEB.OB)(CDNX:SWB.V), a leading financial media company, today announced it has entered into an agreement with Yahoo! Canada in which Stockgroup will provide a selection of editorial content from its highly trafficked StockHouse(TM) financial portal in a featured area of Yahoo! Canada Finance. In addition, Stockgroup will integrate Yahoo's search marketing platform into StockHouse to monetize traffic through contextual advertising and sponsored search advertising.  The agreement enables Stockgroup to distribute editorial content through Yahoo! Finance Canada and benefit from increased traffic and brand visibility driven by Yahoo! to StockHouse. Yahoo! benefits from having access to StockHouse's high quality editorial and user-generated content on the financial markets provided to Yahoo!'s financial community. Yahoo and Stockgroup share in advertising revenue generated through Yahoo!'s Content Match and Sponsored Search, using the recently announced Panama search marketing platform. Investors will benefit from the deep editorial and user-generated financial content of StockHouse to which Yahoo!'s mass audience will be exposed. This deal ultimately helps the investor community to become better informed and better able to react quickly to opportunities in the markets.  "We are very excited to be working with Stockgroup because of their extraordinary statistics for user engagement and great platform for advertisers," said Iain Wilson, Director of Business Development for Yahoo! Canada and Yahoo Search Marketing.  "Yahoo! Finance is one of the biggest brands in online financial media, and we are very pleased to have our StockHouse brand partnered with them," said Marcus New, CEO of Stockgroup. "This deal shows recognition of the importance and power of online communities to educate, inform and provide a depth and breadth of content that the traditional media or professional news agencies cannot match. Yahoo! Canada Finance and Stockgroup are aligned in our view of how today's investors look to online communities to help them navigate the stock market to help them make more money."  About Yahoo! Canada  Yahoo! Canada Co. is a leading Internet destination that provides online products and services to meet the needs of Canadians and offers a range of tools and marketing solutions for businesses to connect with Internet users. Yahoo! Canada services Canadians in both English and in French through its sites, www.yahoo.ca and www.qc.yahoo.ca. Yahoo! Canada is headquartered in Toronto, Ontario.  About Stockgroup Information Systems Inc.  Stockgroup(TM) is a leading financial media company focused on user-generated content and collaborative technologies. The Stockgroup platform for web-based portfolio management, financial content and wireless market data is licensed to top North American brokerage firms and media companies. This platform is also extended through StockHouse.com, a leading online financial portal owned and operated by Stockgroup. StockHouse.com is home to BullBoards(TM) message board - Canada's largest community of active investors. Recognized for its engaged audience, StockHouse.com provides a sought-after demographic for advertisers.  To find out more about Stockgroup (OTCBB: SWEB, TSX-V: SWB), visit our website at www.stockgroup.com.  This release contains "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact and may be "forward looking statements". Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through the use of words such as "expects", "anticipates", "estimates", "believes", or statements indicating certain actions "may", "could", or "might" occur. More information about potential risk factors that could affect our business is included in the Company's 10-QSB for the quarter ended March 31, 2007, which are on file with the SEC at www.sec.gov. Stockgroup undertakes no obligation and does not intend to update these forward looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward looking statements, which speak only as of the date of this press release. All forward looking statements are qualified in their entirety by this cautionary statement.  The TSX Venture Exchange and the OTCBB have not reviewed and do not accept responsibility for the adequacy or accuracy of this press release.  Contact:  Stockgroup Information Systems Inc.  Steve Gear  Director of Capital Markets  (604) 288-2861 or 1-800-650-1211  Website: http://www.stockgroup.com Source: Stockgroup Information Systems Inc.    We Value Your Feedback   Got comments, questions or suggestions? Send 'em on over: Email the Editor 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 Subscribe Information is power and timely information is profitable. Become informed and profit from Small Cap Network Profiles and Trading Alerts by becoming a Preferred Member today. There is no cost associated with your email subscription. 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