Dow Jones 13342.54 +35.45 12:28 pm PST, November 14, 2007 NASDAQ 2663.73 -9.92 For info, visit access.smallcapnetwork.com S & P 500 1485.27 +4.22 Change your subscription status here Russell 2000 785.58 -3.57 VOLUME 07 : ISSUE 107 Stockgroup Now 19 For 19, Spicy Pickle's Spreading  Though we're only halfway through the week, we've already seen a flood of news and activity within our small cap universe. Spicy Pickle followed some expansion news yesterday with earnings news today. Stockgroup, as you'll read in detail below, has made its 19th consecutive increase in quarterly revenue. And our newest trading idea - Tenet Healthcare - is off and running (and pretty well, I might add).  By the way, there's some urgency behind today's e-mail. Stockgroup will be hosting an earnings conference call just shortly after this edition is/was published. Details to participate in the call are below.  Before we get to all the Stockgroup stuff though, a quick comment on Tenet and Spicy Pickle...    Two For Two If you read the blog on a regular basis (as I hope you do), then you've already seen the short novel I've crafted about Spicy Pickle (OTCBB: SPKL) over the last couple of days. I'm not going to repackage those same thoughts, but I will summarize my observations.  In short, I don't think I could be any happier about today's response to SPKL's earnings news. As I mentioned in Tuesday's blog entry, I didn't really expect their third quarter numbers to look fantastic - all the expense of going public and getting some visibility for the stock was incurred last quarter. Even though it's a one-time expense, my worry was the market would jump to conclusions and sell it off. I guess I underestimated investors. Like I encouraged everyone to do over the last couple of weeks, the market seems to understand this is an early-stage growth idea, and the way things are in the recent past are not the way they're going to be in the near future.  The 'future' is evident in Tuesday's news rather than Wednesday's earnings. On Tuesday, we learned they've opened their 31st store, and signed leases for two more. That's the fifth new store in seven weeks, and the company still expects to have 50 open by the year's end. Growth, growth, and more growth. I think the fundamentals will fall right in line. Anyway, the nearby chart says it all...the market bought on the dip, as well as bought on the news. I'm taking that at face value, expecting more of the same as stores proliferate. Check out the blog for the full take. And speaking of rising stocks, Tenet Healthcare (NYSE: THC) hasn't been a disappointment either. We issued an official opinion on Saturday after Friday's close of $4.06, and the current trading level around $4.30 isn't a bad three-day reward. THC has also knocked down the barrier of its 100 day moving average line in the last few days. We'll keep you posted on the progress.    Stockgroup Shines I think even the toughest critics would have a hard time finding anything wrong with 19 consecutive increases in quarterly revenues. Just for perspective, that's nearly five years worth of constant improvement. Congrats go out to Stockgroup Information Systems (OTCBB: SWEB) for doing the deed.  The company pulled in revenues of $3.4 million, versus about $1.9 million for the same quarter a year ago. As for the bottom line, the net loss came in at $2.2 million. Don't jump to any conclusions though...about $650K of that loss was made up of one-time expenses.  Remember the launch of the new website? A large chunk of the R&D cost of the new site was booked last quarter, as was a one-time cost-reduction expense associated with the acquisition of Mobile Finance.  Despite last quarter's numbers, I'd still consider the expense a smart one to take on. Why? I was a site member before the change, and still am now. I have to say the 'before and after' picture is like night and day (and the 'before' was already pretty cool). I think other investors are thinking the same thing, which is why I ultimately expect the R&D investment to pay off in terms of subscriptions as well as ad revenues.  Plus, Stockgroup really has no peers in this user-generated content arena. Adding the functionality of rating this user-contributed commentary just takes the site to the next level, and should stave off any would-be competition.  That said, I also think the ad revenue space is one of the key unsung opportunities for improvement here. Quarterly ad revenue actually fell from $943K to $862K. However, between the site overhaul and the new implantation of 'Monetization VP' Joe McWilliams, the company didn't have the benefit of firing an all cylinders - in terms of ad revenue - for a full three months. Plus, most of the ad revenue was provided via ad networks, where margins aren't quite as high. I think the next quarter (the one we're in right now) should be considerably stronger now that McWilliams is up to speed. I also suspect there's something more in the works concerning mobile devices. This has been the off-and-on hot button ever since they bought Mobile Finance early in the year. They did the deal with Reuters back in June, but I think cultivating this revenue path was put on the back burner so they could focus on the site's rebuild. Now with the new site out of the way, I think they'll turn the heat up again in the mobile device market.  The other thing I'd like to know more about is future acquisitions. The company is sitting on $6.6 million in current assets, $4.1 million of which is cash. Why? What's the plan for that money? The nice part is, you don't have to follow my lead...you can ask about these initiatives (or any others you want to) in today's conference call. It starts at 4:05 PM EST, though you may want to start connecting a few minutes beforehand. If you just want to listen and watch over the Internet, you can do so by going to this page (http://www.vcall.com/IC/CEPage.asp?ID=122651). You'll need the Windows Media Player to access the webcast. If you'd like to ask a question yourself, the number to call is 1-866-400-3310. Remember, some of the most helpful and insightful information you can get fro these calls is not in the scripts, but in their answers to your questions.  Anyway, the press release is here.     We Value Your Feedback   Got comments, questions or suggestions? 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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, TGR accepts compensation from third party consultants and/or companies, which it features in the publication and circulation of SCN. To the degrees enumerated herein, SCN should not be regarded as an independent publication.  Click Here or go to http://access.smallcapnetwork.com/compensation_disclosure.html to view our compensation on every company we have ever covered, or visit the following web address: http://access.smallcapnetwork.com/profile_disclosure.html for our full profiles and http://access.smallcapnetwork.com/short_term_alerts.html for Trading Alerts.  Larry Isen, the editor and publisher of the OTC Journal, through various entities he controls, has purchased 1,200,441 shares of Spicy Pickle at an average cost of $.2125 per share. These purchases were made in Spicy Pickle private offerings. The aforementioned purchases were made between August of 2005 and August of 2006. In addition, Larry Isen has received 785,000 shares of Spicy Pickle common stock for consulting services. In addition, MarketByte LLC, an entity controlled by Larry Isen, has received a fee of $30,000 cash, and 300,000 newly issued restricted shares for coverage of Spicy Pickle. TGR Group LLC, the publisher of the Small Cap Network, has received $30,000 and 300,000 newly issued restricted shares for coverage of Spicy Pickle. Mr. Isen is an affiliate of TGR Group. In addition, two other individuals affiliated with TGR Group have purchased a total of 300,000 shares at $.25 per share and received an additional 70,000 for consulting services. 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