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VOLUME 07: ISSUE 13
Stockgroup's
Suggested Entry, Redux
Last
Saturday, when we first profiled Stockgroup Information Systems (OTCBB:
SWEB), we attempted to illustrate how the average retail investor still
lacks high-powered tools and information. By filling that void, we further
surmised Stockgroup would be able to generate some serious revenue....and
keep that revenue figure headed upward.
Of
course, the value of the outlook ultimately hinged on one idea - whether
or not the rise of the investor services industry was real, or only perceived.
We argued it was real, as Stockgroup also believes. But, if you need third-party
verification, we think you got it today, and how! We feel
one of the most recognizable names and voices in the investing world essentially
said the exact same thing about retail investor services. Better
still, he agreed Stockgroup - through StockHouse.com and the StockStream
platform - looked ready for the challenge of bringing a great offer to
the retail world. More on that below.
In
the meantime, having seen SWEB shares hold their ground following an explosive
move late last week, we have to say we're impressed by their sheer strength.
We recommended perhaps waiting for a pullback to use as an entry point
if you were interested in being an owner, suggesting 60 cents per share
would be the most you'd need to pay to get in. Well, shares have barely
budged after closing at 74 cents last Friday. That's a good thing in our
eyes though....we don't think there's anything bad about a stock that
holds onto its gains, even when sharply overbought. In fact, we're
impressed enough to raise our suggested entry levels on last weekend's
trading idea.
A
High-Profile Acknowledgment
The
full press release is below as always, but we can summarize it succinctly
right here...Jim Cramer, CNBC commentator and stock market icon, recently
stated Stockgroup's StockStream (TM) Platinum could take 'the investor
experience with their [financial] advisor to new heights.'
What's
'StockStream Platinum'? Remember when we mentioned co-browsing
on Saturday? It's the stock data platform that allows an advisor to remotely
work with a brokerage client within the same Internet browser window....the
StockStream interface, in this case. As far as we're concerned, aside from
just being plain cool, it is indeed the pinnacle in advisor/client relationships
in the web-trading world.
The
venue for Jim Cramer's opinion was fittingly a seminar about improving
client/advisor technologies. Cramer was the keynote speaker, and Stockgroup's
CEO Marcus New was on the panel.
There's
no need to insert here what you can read for yourself below, but there's
one quote we feel is worth highlighting.....Jim Cramer also stated 'The
institutions that provide the best online experience and the best use of
technology will win.' If the theme rings a bell, it's probably because
it
was the same point we were making last weekend. The advent of Web-trading
largely, and deliberately, separated brokerage clients from their advisor.
This tool puts them back together again.
And
trust us, the brokerage houses are likely to fall in love with the platform.
If a tool makes it easier to attract and retain a client, we suspect
they'll be more than willing to consider the possibility at almost any
cost.
In
our opinion, the $6 billion retail investor market is for real. Heck, think
about what you're doing at this very moment. While the SmallCap Network
Newsletter has its fair share of institutional readers, by and large, we
sense most of our fans are retail investors....you know, the individuals
out there just looking for an edge or a way to boost their bottom line.
In other words, we think Stockgroup's target market is a good one.
And that's not self-serving chatter...one of the biggest retail investor
advocates in the world just agreed with the same idea.
With
that in mind, we think our original trading suggestion may need some
tweaking. Rather than be stubborn about a few pennies, we'll submit
this idea...maybe SWEB shares are still a bargain even at a price greater
than our initial suggestion of 60 cents. Keep reading.
Shares
Are Stubborn (In a Good Way)
To
lay the groundwork for the revised opinion, let's review exactly what we
said last Saturday....
"...as
far as we're concerned, we feel shooting for an entry level of 60 cents
or lower makes good trading sense. If it doesn't happen, then we'll look
at other possible entry scenarios later in the coming week."
Well,
guess what...60 cents? It didn't happen. The lowest low we've seen
since then was 64 cents, with shares closing at 70 cents on Wednesday.
In our opinion, the stock is worth so much more. In fact, we mentioned
a target of $1.51. Is it worth risking a potential 81 cent move from
here just to save 10 cents on any entry? We don't think so. Therefore,
we feel any dollar amount Stockgroup trades at on Thursday is still likely
to be a bargain in comparison to where we think shares could ultimately
end up going. In other words, we think a limit order may be working against
you instead of for you.
As
far as a suggested target and stop, we'd say the original levels of $1.51
and $0.34 (respectively) are still valid. For the Canadian-exchange version
(TSX-V: SWB), $1.81
and $0.40 still seem like a good target and stop to us.
Why
the change of heart? Hey, we watch the same stock charts everyone
else is. We've seen big jumps - like the 23 cent move (+45%) between last
Thursday's close and last Friday's close - just end up getting unwound
as quickly as they were made. But, a funny thing happened here.....the
stock never really gave up any meaningful ground. Instead, there appears
to be a support level established around 65 cents. Each day that line keeps
shares aloft, the stronger it gets.
Now
more than a full three trading days past the big surge, there still don't
seem to be any interested sellers despite the big profits that could
be taken. What does that tell you? It tells us one important thing
- most players must think SWEB is at least worth something close to
70 cents, and possibly a heck of a lot more. Of course we agree, and
even more so after hearing Jim Cramer chime in about the void Stockgroup
is filling. Like we said Saturday, as 2007 unfolds, we feel the strength
of the company's results will continue to create major appreciation
in the stock's trading level
Stockgroup
Hosts Financial Thought Leadership Event With Jim Cramer
Launches the
first portfolio system that enables investors to collaborate with their
advisors
NEW YORK, NEW
YORK--Feb 1, 2007 -- Stockgroup Information Systems Inc. (OTCBB:SWEB.OB)(CDNX:SWB.V)
yesterday held its Thought Leadership Seminar in New York, sponsored by
Microsoft Corp. and with keynote speaker Jim Cramer, investor advocate,
author and host of CNBC's Mad Money.
In connection
with the seminar, titled Technologies that Drive Client Retention and Improve
Adviser-Client Communications, this event also marked the U.S. launch of
StockStream(TM) Platinum - Stockgroup's web-based portfolio management
product with innovative technologies for advisor-client collaboration and
customer intelligence, aimed to improve client retention of leading retail
investment firms.
The seminar brought
together brokerage industry executives to discuss the potential impact
of the emerging affluent retail investor demographic segment, and how technology
can help empower the investor to produce an improved service model between
advisor and client. Keynote speaker, Jim Cramer, Market Commentator for
CNBC, led a distinguished panel of speakers which included Matt Bienfang,
Research Director, TowerGroup; Craig Saint-Amour, Capital Markets Industry
Solutions Director, Microsoft's U.S. Financial Services Group; and Marcus
New, President and Chief Executive Officer of Stockgroup.
Jim Cramer, investor
advocate and best-selling author, opened the conference by providing insights.
"Financial institutions have by and large overlooked the segment of investors
with $50,000, referred to as the emerging affluent. These people, early
in their careers, represent the future profits for the brokerage institutions.
The institutions that provide the best online experience and the best use
of technology will win. With the launch of StockStream Platinum, Stockgroup
and Microsoft are taking the investor experience with their advisor to
new heights," Mr. Cramer said.
Matt Bienfang,
Research Director, Brokerage and Wealth Management at TowerGroup, commented,
"How firms communicate with their customers is up to the customers. Firms
must invest in collaborative tools and other technologies to help re-engage
the front office with its customers. Technologies such as those developed
by software companies like Stockgroup and Microsoft will change how people
use the Internet to manage their financial assets."
Craig Saint-Amour,
Capital Markets Industry Solutions Director, Microsoft's U.S. Financial
Services Group, said, "Today's financial advisor has on average 250 clients
representing all age groups and investment interests. Many of these clients
have growing sophistication about the market, yet no standard form of collaboration
and communication. Microsoft software provides a platform for software
products such as StockStream to provide solutions that empower financial
advisors to work more effectively within and across organizations - ultimately
giving them a real-time, 360 degree view of a customer's financial situation."
"New technologies
are driving the evolution of the advisor-client relationship, specifically
in customer profitability and client retention," stated Marcus New, President
and CEO of Stockgroup. "In StockStream, we have developed a powerful collaboration
tool to improve communications and enhance the online experience for the
mutual benefit of both advisor and client."
About StockStream
Platinum
StockStream is
a real-time, streaming portfolio management product designed for Retail
Investors. Offered by the investment firm to its high-value clients, it
supports the advisor's strategies to increase client retention and enhance
client communications. In addition to providing quotes, market depth, charts,
alerts, news and portfolio analysis, the product utilizes Stockgroup's
collaboration technology to enable advisors and clients to simultaneously
view the online portfolio as well as set alerts by the advisor for the
client. With this enhanced online customer experience, they are able to
discuss investment strategies and portfolio performance in a new way that
deepens the advisor-client relationship. StockStream Enterprise offers
valuable customer intelligence, to allow the advisor to identify client
wallet-share, potential profitability, most-held stocks, and trading behavior.
About The Event
Speakers
Jim Cramer
Jim Cramer graduated
magna cum laude from Harvard College, in 1977, where he was President of
The Harvard Crimson. He then worked at the Tallahassee Democrat and the
Los Angeles Herald Examiner, covering everything from sports to homicide,
before moving to New York to help start American Lawyer magazine. After
a three-year stint, Cramer entered Harvard Law School and received his
J.D. in 1984. He then passed the New York Bar Exam, but instead of practicing
law, went directly to Goldman Sachs, where he worked in sales and trading.
In 1987 he left Goldman to start his own hedge fund, where over a fourteen
year period he delivered a compound return of 24% after all fees, substantially
in excess of the market during that same period. While he worked at his
fund he helped start Smart Money for Dow Jones and then in 1996, he co-founded
TheStreet.com, the online portal of financial opinion and analysis. In
2000, he retired from active money management to embrace media full-time,
including radio and television. He is a markets commentator for CNBC and
TheStreet.com, and host of CNBC's Mad Money with Jim Cramer. He is the
author of several books on investing, such as "Confessions of a Street
Addict," "You Got Screwed," "Jim Cramer's Real Money," and most recently
"Jim Cramer's Mad Money: Watch TV, Make Money."
Matt Bienfang
Matt Bienfang
is Research Director, Brokerage and Wealth Management, at the TowerGroup.
Mr. Bienfang has over 17 years of experience in the brokerage industry.
He consulted to brokerage firms, and helped his clients utilize technology
to help streamline operational processes and delivery channels. Previously,
Mr. Bienfang was Executive Vice President of a large Independent Broker-Dealer,
responsible for brokerage operations and program development. He has held
positions as head trader and senior manager leading many initiatives, where
technology was always an integral component of the initiative.
Craig Saint Amour
Craig Saint-Amour,
leads Microsoft's U.S. Capital Markets team of sales and strategy professionals.
With a total of 30 years of U.S. and international business experience,
including responsibilities for sales, operations, and strategic planning,
Saint-Amour has focused the last 20 years on the financial services industry.
Prior to joining Microsoft, Saint-Amour worked for Sun Microsystems, driving
its U.S. capital markets industry solutions, and before that, he spent
10 years with Digital Equipment Corp. within the Corporate Accounts Program.
He's also had tenures with Wang Laboratories and IBM.
Marcus New
Marcus New is
the President and CEO of Stockgroup Media Inc. He founded Stockgroup in
1995. He acquired StockHouse.com in 2003. With his vision and strategy,
he has built StockHouse into one of the top media brands in Canada. Mr.
New was a finalist in the Ernst & Young Entrepreneur of the Year Awards
in 2005. Previous to Stockgroup, he was VP of Investor Relations at AmCan
Public Relations Group. Mr. New is a business leader and sought-after speaker.
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.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 Section 27A of the Securities
Act of 1933 and Section 21B of the Securities Exchange Act of 1934. 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", "will", "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 Form 10-QSB for the quarter ended September
30, 2006, which are on file with the SEC and available at the SEC website
at www.sec.gov. Stockgroup is not obligated to update these forward looking
statements to reflect events or circumstances after the date of this document.
The TSX Venture
Exchange has not reviewed and does not accept responsibility for the adequacy
or accuracy of this press release.
Contact:
Stockgroup Information
Systems Inc.
Steve Gear
Director of Investor
and Corporate Communications
1-800-650-1211
Website: http://www.stockgroup.com
We
Value Your Feedback
Got comments, questions or suggestions?
Send 'em on over: Editor@smallcapnetwork.com
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
Challenger
Scheduled for L.A. Boat Show This Coming Week
Just
one day after announcing the news about a major acquisition, Challenger
Powerboats (OTCBB: CPWB)
is back to work. Starting this weekend, the company will be highlighting
their performance boats at the week-long Los Angeles, California boat show.
This is a big show, and a major opportunity to garner some West Coast exposure.
We're
particularly excited, but not necessarily for the same reason. We've just
seen the last couple of shows turn out really well for Challenger. For
instance, after attending a Fort Lauderdale, Florida show, Challenger sold
seven boats to a dealer, and eventually signed a major international distributor.
So, if history is any indication, attending yet another show could mean
another major boon for business.
And
in case you're wondering, yes, Challenger will be featuring the recently
acquired Sugar Sand and Gekko lines as well. If you happened to miss that
news, be sure to click
here.
For
more on the L.A. show, click
here.
Clearly
Canadian Releases Steve Nash Video....And It's Pretty Cool
Though
we weren't initially quite sure what it was going to be, after seeing it
for the first time yesterday, it all makes sense. As part of the launch
of the company's enhanced waters, Clearly Canadian (OTCBB:
CCBEF) spokesperson Steve Nash (yes, the NBA star) was featured in
a short commercial for the newest product line.
We
don't want to spoil the surprise for you, so we'll just recommend you see
it for yourself - it's short, but impressive. You can view it on the Clearly
Canadian website. Just click
here (it's the lower one on the page). The company says the sequence
is one continuous shot.
We
think this novel, memorable sports-action sequence should go far in getting
some good attention for the new line of enhanced waters.
Siena
Garners $1.2 Million in Financing Deal
Tuesday
afternoon we learned Siena Technologies (OTCBB:
SIEN) has put another $1.2 million in its war chest. The funds were
raised via a private placement among senior managers and qualified investors.
The terms of the deal were for every share of common stock sold, there
was also a warrant included to buy another share. No specifics were released
on the issue price or warrant strike.
As
far as we're concerned, it's money well spent.....or it will be anyway.
Back on December 18th we highlighted the new success Siena was enjoying,
suggesting their efforts may also end up benefiting shareholders. That
opinion hasn't changed. The company is really starting to put up some bigger
numbers, and we think the stock may be in the 'sweet spot'.....the time
between the re-invention and profitability.
Here's
a link to the full press
release.
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D I S C
L A I M E R:
The Small Cap
Network, its website and email newsletter (hereafter, cumulatively referred
to as "SCN") , is an independent electronic publication committed to providing
its readers with factual information on select publicly traded companies.
SCN is owned and operated by TGR Group, LLC ("TGR"). TGR 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, 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.
On January 19th, 2007 TGR Group LLC
entered into an agreement with Stock Group Media, Inc. (a wholly-owned
subsidiary of Stock Group Information Systems, Inc.) whereby Stock Group
Media, Inc. will provide $50,000 worth of advertising and marketing services
to TGR Group, LLC in exchange for coverage of Stock Group Information Systems,
Inc. on the Small Cap Network web site and newsletter.
TGR Group LLC has been paid a fee
of $30,000 and 200,000 newly issued restricted shares of Siena Technologies
for coverage of the company. In addition, one of the principles of TGR
Group LLC is also a principle of MarketByte LLC. In a separate contractual
relationship in 2003, MarketByte LLC was paid a fee of $25,000 in cash
and 500,00 newly issued, restricted shares by Siena Technologies for coverage
of the company. The term of MarketByte's obligation to Siena Technologies
has expired. The aforementioned 500,000 shares issued to MarketByte LLC
have become free trading, and whatever number remains could be sold at
anytime. This should be viewed as a potential conflict of interest.
TGR Group LLC has been paid a fee
of $30,000 and pledged 150,000 warrants with an exercise price of $2, currently
convertible into restricted shares of Clearly Canadian, by Level III Research,
for its coverage of Clearly Canadian.
TGR Group LLC has been paid a fee
of $25,000 cash and 500,000 shares of newly issued restricted stock directly
by Challenger Powerboats for coverage. The aforementioned shares have become
free trading under Rule 144. On March 7, 2006, TGR Group LLC entered into
a contract extension whereby TGR could receive as much as $65,000 cash
and 1 million, newly issued restricted shares over the next one year period
from Challenger Powerboats for coverage of the company. To date, TGR has
received an additional $35,000 and 500,000 newly issued restricted shares.
From time to time TGR sells shares
received as compensation for coverage of client companies. Shares received
are sold in the open market. Since the shares are received as compensation
for services as previously disclosed, and not for investment purposes,
TGR does not view the sale of the shares as contradictory to any opinions
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AND DO THEIR OWN DUE DILIGENCE BEFORE INVESTING IN ANY SECURITIES MENTIONED.
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We encourage our readers to invest
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The NASD has published information on how to invest carefully at its web
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