Dow Jones 13300.02 -360.92 6:13 am PST, November 8, 2007 NASDAQ 2748.76 +0.00 For info, visit access.smallcapnetwork.com S & P 500 1475.62 +0.00 Change your subscription status here Russell 2000 775.96 +0.00 VOLUME 07 : ISSUE 105 APDN's Serendipity Serendipity is defined as "the effect by which one discovers something fortunate while looking for something else." With that being the case, I think Applied DNA Sciences (OTCBB: APDN) recently had a serendipitous moment in terms of potential revenue. In fact, I'm wondering if the 'discovered' revenue path may end up being bigger than the security/counterfeit revenue path we first discussed back on October. More on that in a second....  Most of you will remember the core of Applied DNA's strategy (so far) has been the introduction of ways to prevent or stop product counterfeiting and piracy. Globally, the practice costs legitimate companies $600 billion every year. You know as well as I do the guys being counterfeited would love to take a bite out of that number...and would be willing to spend a few bucks to do so. Enter Applied DNA. They've devised a DNA-based way to distinguish between fake and authentic products, whether it be clothing, pharmaceuticals, or car parts.  What you may not know yet - and here's the serendipitous part - is that the process used to manufacture the DNA used in their counterfeit-testing devices also creates generous quantities of bacteria, yeast, proteins, or peptides. (Actually, it's more serendipitous to shareholders...the company already knew the fermentors could be used for multiple products.) The fermentation process and all its products have very practical applications within the $50 billion skin-care market.  And yes, that's billion with a 'B'. See why this caught my interest? The products in development will be a variety of ingredients for use by consumer product companies with skin care lines. Applied DNA began offering samples of protein fragment ingredients (under the name Dermal RX) to select companies in July, and have also been testing an ingredient that exfoliates skin without irritating it. There aren't a lot of details about which companies are test-driving any or all of the fermented products, but considering Applied DNA hired more employees to facilitate Dermal RX's development, I have to assume it's a pretty serious venture at this point.  And let me repeat....$50 billion worth of skin-care products are sold every year. What kind of sliver could APDN take out of that pie? It's hard to say, but let's conservatively estimate the company - as an ingredient supplier - can pocket a modest 0.05% of that figure. That's still a $25 million opportunity.  That's not even the part I like the most though. What really lights my fire is the diversity this brings to APDN's product mix. Not only are there two markets instead of just the one (counterfeit protection), but there are two distinct kinds of markets.  The skin-care ingredient market isn't complex. Ingredients are ordered, shipped, used, and re-ordered pretty quickly. That translates into a good cash flow for Applied DNA while they're out marketing the bigger-ticket, anti-counterfeit systems. More competition in this arena? Yeah, but it's not ground-breaking work.  The anti-counterfeit market - on the other hand - is ultimately bigger, and the sales cycle is probably quite lengthy. But, there's little to no viable competition in this space. Nobody can quite do what Applied DNA does, and the technology just can't be beat.  A way to win in the short-term, backed by a way to win in the long-term? I think investors are the ones who should be experiencing serendipity. Here's the press release.    Can 112 Million Users Be Wrong?  I'd be the first to confess...a couple of years ago, I considered 'social networking' a passing fad. Since then, I've completely changed my tune, and not just because of News Corp's $580 million acquisition of MySpace.com (the world's biggest social networking site) in 2005. Any lingering doubt was wiped away for me a few weeks ago when Microsoft bought a tiny 1.6% of Facebook (the 2nd biggest social networking site) for $240 million. Extrapolating Microsoft's purchase price for its stake suggests that Facebook is worth somewhere between $10 and $15 billion. The numbers are astounding. MySpace has 61 million registered users. Facebook has more than 51 million active users. That's 112 million users, and even with some overlapping users it's still a huge number. MySpace signs up 220,000 people every day, while Facebook brings in 200,000 every day. Both are ranked among the web's most-trafficked sites.  With those kinds of numbers on the table, clearly something compelling is happening within these networking sites. That 'something' is ultimately what every website wants...traffic, users, and eyeballs. It's a virtual dream come true if you're an ad-sponsored site.  And it's not just social networking sites gathering users in droves. Customized home pages are becoming the norm too. Google's iGoogle, originally launched in 2005 simply as 'Google Personalized Homepage', is rapidly becoming the standard by which web surfers measure their experience in all-things-Internet. The site's functionality is hard not to be attracted to because there are thousands of 'gadgets' its users can select to customize their own page.  What's this got to do with small cap stocks? Ask yourself this...what kind of impact would there be if a savvy, small cap company took advantage of this traffic (highly-targeted and self-selected traffic, no less)? I think it would be a slam dunk, putting said company in front of a lot of new users.  Well, that's exactly what Stockgroup Information Systems (OTCBB: SWEB) is doing. The company announced this morning they've launched their own market-related applications for use on iGoogle and Facebook pages. The gadgets for both networking sites display 'SH Editorials', and 'StockHouse@TheBell'. The 'SH Editorials' are opinions and ideas from the site's columnists, while 'SH@TheBell' is an end-of-day wrap-up with some thoughts on the coming trading day.  The new tools should create a more robust experience for current StockHouse.com users, but more importantly, I think they'll introduce StockHouse.com to a whole new batch of traders and investors who may not have heard of them otherwise. Given that StockHouse.com is already one of the web's stickiest sites, I don't think it will take much to turn this new traffic into dollars. All that's needed is a nudge towards the site...which is what these applications are designed to do. For an idea of what they look like, click here to see the iGoogle gadget, and click here for the Facebook tool. The full press release is below.    Stockhouse.com Applications Launch on Facebook and iGoogle  NEW YORK, NEW YORK--(MARKET WIRE)--Nov 8, 2007 -- Stockgroup Information Systems Inc. (OTC BB:SWEB.OB) (CDNX:SWB.V), a leading financial media company, announced today the launch of Stockhouse applications on Facebook and iGoogle websites. Stockhouse.com applications now provide Facebook and iGoogle users with the latest financial information in one place, as soon as it is published.  Stockgroup's application development for the world's leading online social networks creates more opportunities for Stockhouse.com users to connect with a broader range of communities. With its large community of citizen journalists, Stockhouse.com has facilities for visitors to contribute news, information and insightful opinions on the Russell 2000 and the long-tail of North American equities, creating a compelling news source that cannot be matched by traditional media. The Stockhouse.com community receives over 800,000 unique visits per month, and more than 80 million page views per month.  Features of Stockhouse.com include:  - The Internet's first investor reputation system enabling investors to share insights, rate and rank content for quality and have instant access to the results  - Citizen journalism to allow contributions and observations from the community, for the community - Collaborative tools to allow conversations, groups and interactive discussions  - Personalization and sophisticated social networking functions relative to the stock market  Facebook is a social utility that connects people with friends and others who work, study and live around them. Microsoft purchased a 1.6 percent stake in Facebook last month valued at 240 million US dollars, in an advertising deal that values the social networking site at 15 billion US dollars.  iGoogle is a personalized homepage that gives users at-a-glance access to key information from Google and across the web. On the self-designed iGoogle page, users can choose and organize content using specially developed "gadgets" that can be shared within the Google community.  "We are excited to be integrating our applications into the extensive social networks of Facebook and iGoogle to extend the reach of Stockhouse.com," says Bruce Nunn, Vice President, Marketing for Stockgroup. "Our powerful new technologies and platforms advance our vision of harnessing the wisdom of the crowds to help individual investors gain stock market advantage."  Facebook users can add Stockhouse.com applications to their profile by visiting:  http://apps.facebook.com/editorial http://apps.facebook.com/thebell 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.  Legal notice regarding Forward Looking Statements  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 June 30, 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.  To find out more about Stockgroup (OTCBB: SWEB, TSX-V: SWB), visit our website at www.stockhouse.com.  The TSX Venture Exchange and the OTCBB have not reviewed and does 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 or 1-800-650-1211 Email: steve.gear@stockgroup.com  Stockgroup Information Systems Inc.  Bruce Nunn  Vice President, Marketing  (604) 331-0995  Email: bruce.nunn@stockgroup.com  Website: http://www.stockhouse.com Karyo-Edelman Will Mbaho (604) 623-3007  Email: william.mbaho@karyo-edelman.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 Another Look at Titan Global's Government Biofuel Benefits  Wednesday's news is kind of what I was talking about a couple of weeks ago when I detailed Titan Global's (TTGL) entry into the often-government-supported world of biofuels. Per the Wednesday press release, we learned Titan had received grants from the state of Tennessee (where recently-acquired Appco Oil is based) to pay for the installation of biofeul pumps and storage tanks. It was only $190,000, so it's not like winning the Super Bowl or anything. However, it does validate my idea that the biofuel industry is getting a lot of help from local and state governments.  Here's the whole press release.    Clearly Canadian To Host Earnings Call, Release Q3 Results  It's do-or-die time for micro cap stock Clearly Canadian (CCBEF). The company has announced they'll be releasing Q3 earnings on November 14th (Wednesday) at 4:05 pm EST. There will be a call and webcast at 4:30 pm EST the same day.  You may recall my last comment on the company from an October 15th blog entry. Basically, I'm not impressed by all the recent news. It all sounds good, but lacks substance. Of course the company is ramping up the top line sales figure...they bought two more companies. My problem is, the combined companies should be doing more revenue than they're doing. More than that, I wonder if they spent $2 to make $1. Based on the stock's chart, I'm not the only one with that opinon.  Bottled water sales - the original staple for the organization - are actually down. The 'My Organic Baby' stuff seems to be doing pretty well, and the snack food division....well, I can't really tell what's up with that. Judging from the number of new outlets and retailers, snack food sales should be through the roof. They're not though. In the company's defense, they are in the midst of rebuilding their beverage distribution network. However, why should shareholders be penalized in the meantime while they get all their ducks in a row?  I really need to see some proof that these acquisitions are going to pay off. Hopefully it'll be in next Wednesday's numbers. My fear is, there's more promise here than profit. I hope I'm wrong, but we'll see.  The call in number is 800-949-8476. To see the webcast, go to www.clearly.ca.  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. 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