Dow Jones 13935.46 -36.09 7:29 am PDT, July 18, 2007 NASDAQ For info, visit access.smallcapnetwork.com S & P 500 1543.89 -5.48 Change your subscription status here Russell 2000 VOLUME 07 : ISSUE 70 Stockgroup Strikes While The Iron Is Hot  In the movie 'Field of Dreams', there's a well-known line, "If you build it, he will come." However, when it comes to websites, I think the quote may need an addendum. Perhaps it's more accurate to say "If you build it, he will come.....but he may not pay for it." See, anybody can pretty much build a website. Not just anyone can make it bear revenue though.  Today's news from Stockgroup Information Systems (OTCBB: SWEB) reminded me of that premise mostly because they're one of the outfits doing 'web' right, having figured out how to grow a site-based business. The proliferation of successful websites was no accident though - the Internet's invention has also brought about a new breed of professional.....those oh-so-rare individuals who are experts at maximizing the revenue-driving capabilities of web businesses.  So superficially, Stockgroup's news may seem like a run-of-the-mill event. But, if you keep the above idea and mind as you read between the lines of today's news, you might find an edge missed by most other investors.    A New V.P. - More Than Just A New Hire?  Stockgroup has hired a Vice President of Monetization/Advertising. I know, I know......just another new hire, right? Maybe, or maybe not.  His name is Joe McWilliams. Yes, the guy has plenty of credentials, and is more than qualified to do the job. You may not have heard of him, but you've probably been exposed to his work. He helped build Hoover's into the site eventually acquired by Dun & Bradstreet, and more recently held a similar position with Highbeam Research.  What really struck me though was not the guy's experience, but the fact that they specifically have someone for a 'monetization' role. What does that tell you?  Think about it like this....what do you think would be the best way to double Stockgroup's ad revenues? My first thought would be simply to double their traffic, and that may indeed work. But what if they could produce a 100% increase in revenue with only a 50% increase in web traffic? Better still, what if they doubled their traffic, but managed to quadruple their sales?  Now don't get me wrong - Stockgroup's site stockhouse.com has had no problems at all turning traffic into revenue. The company did just under $8 million in sales last year, with an average of 80 million page views per month spread out among 750,000 unique users. But if a hypothetical one out of every ten visitors is profitable, wouldn't it be logical to make two out of every ten visitors profitable?  Well fellow investors, that's the basic idea behind hiring this guy. He's well versed in maximizing the revenue a website site can create from its traffic. More potential sales per user or page view, and a better web traffic ROI? Yep, now I'm interested. I think the news in itself is a pretty good reason to renew your enthusiasm about SWEB. Stockhouse.com was and is an ad-driven site, but I don't know that the ad sales focus had grown with the site's traffic. Now, with the addition or Mr. McWilliams' experience, I suspect Stockgroup will be able to take their ad revenue to the proverbial 'next level'.    Perfect Timing  The timing of McWilliams' hire probably couldn't have been any better.  Truth be told, stockhouse.com already had a solid traffic attraction/retention program.....which is one of the keys to running a successful website. It was ranked as the second stickiest Canadian site, and ranked number one in Canadian user page views (two accolades that go hand in hand). And more importantly, the site had proven its monetary viability.  So why is now such a good time for McWilliams' entrance? Remember the news from a couple of weeks ago about stockhouse.com's partnership with Yahoo! Canada's Finance page? Stockhouse headlines are soon going to be featured on the Canadian version of Yahoo! Finance, which will be linked back to the stockhouse site. That's means instant new traffic, and likely a whole lot of it. Plus, Stockgroup intends to overhaul the entire site in the near future.  While stockhouse.com had a pretty solid web traffic rating (according to Alexa) of 9554, Yahoo! Canada's Alexa ranking is 3 among Canadian sites.....the third most trafficked site for the country. That's apt to put a whole lot of new eyeballs on the stockhouse.com site, and as a result improve the site's overall fiscal results.  You do the math here.....more traffic, and now a stronger monetization factor for each page view. I believe we're looking at not just growth, but exponential growth.    The Chart - Told Ya' So I think we've blogged something about SWEB's chart almost every day for the last week and a half. But, it's all been merited. It just looks to me like Stockgroup's shares are itching to start the next bullish leg of their journey.  It all started back on June 14th when the stock broke back above its 20 day average line in addition to breaking above a key resistance level. SWEB flew from 99 cents to $1.29 a couple of weeks later.  And it's not like the bears haven't had a chance to put the fire out. The stock fell from $1.10 to $1.00 in late June, but the 20 day line was there to halt the selling and restart the buying. It happened again on Friday - SWEB fell all the way to a low of $1.16 from $1.26 a day earlier....but still finished Friday at $1.22. The catalyst was - lo and behold - support at the 20 day line. (The $1.16 mark was also a 38.2% Fibonacci retracement line.) Monday's move up to $1.25 was a nice indication of sustained investor interest. I think a move beyond the recent peak of $1.32 could draw out even more buyers, though I'm not sure if my speculative spirit would let me wait for that to happen. Besides, we've already seen so much upward momentum in the last few days....is that last little bit going to mean that much? (Of course, I believe the answer really depends on the kind of trader you are.)  Once again, our suggested stop on SWEB is 63 cents, though that may be upped soon. As for an upside target, we've still got $2.00 in view. We may be raising that bar in the near future too, if things continue to progress.  Here's the press release.    Stockgroup Appoints Veteran VP of Advertising Sales to Lead Monetization of Major Financial Portal  NEW YORK, NEW YORK-- July 18, 2007 -- Stockgroup Information Systems Inc. (OTCBB: SWEB) (CDNX: SWB.V), a leading financial media company, today announced Joe McWilliams has joined the company as VP of Monetization/Advertising.  Mr. McWilliams comes to Stockgroup with over 13 years of experience in sales and advertising with distinguished media companies in North America. Mr. McWilliams started his career in 1994 by growing a strong network of clients for Hart Publications based in Houston, TX. Mr. McWilliams then joined Hoovers (HOOV), an online provider of business information, where he spent the next 10 years in a variety of roles ranging from Sr. Advertising Sales Manager to Director of Global Advertising Sales. While at Hoover's Mr. McWilliams contributed to the major expansion in clientele and strong revenue growth the company experienced before being acquired by Dun and Bradstreet in 2003 (NYSE: DNB). Most recently Mr. McWilliams held the position of VP of Advertising Sales with HighBeam Research in New York, NY. Mr. McWilliams replaces Michael Donnelly.  "StockHouse is one of the strongest sites for user engagement according to Comscore(TM) and a leader in financial user generated content," stated Marcus New, President and CEO of Stockgroup. "As we near the launch of the new StockHouse site in September, Mr. McWilliams will fulfill a key role in helping us monetize the critical mass of web-traffic that is currently generated and the significant growth of traffic we expect."  "Stockgroup has a strong web franchise and a unique platform for the delivery of financial media," stated Mr. McWilliams. "I am excited to come here to contribute results. Going forward we will focus on overall monetization of our community and assets, in addition to increasing our advertising revenue. I am truly excited about the opportunities that are here and the contribution I can make to this growing organization."  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 and financial content 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 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.  Contacts:  Stockgroup Information Systems Inc.  Steve Gear  Director of Capital Markets  (604) 288-2861  Stockgroup Information Systems Inc.  Todd Corrigall  Public Relations Manager  (604) 331-0995 x 124  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. 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