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Stockgroup's Suggested Entry, Redux
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February 2, 2024

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Dow Jones 0.00 +0.00 6:29 am PST, February 1, 2007 NASDAQ 2463.93 +0.00 For info, visit access.smallcapnetwork.com S & P 500 0.00 +0.00 Change your subscription status here Russell 2000 800.34 +0.00 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.  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. Add your email address below and make sure to check your email inbox and confirm your opt-in request to start receiving the Small Cap Network Email Newsletter on a regular basis. To ensure newsletter delivery, you can add any additional email addresses you may have to the Small Cap Network Member List. Receiving the Small Cap Network Newsletter in multiple locations is the best way of making sure you don't miss the next investing or trading opportunity! 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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.  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. 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