Dow Jones 12288.10 +61.93 1:56 pm PDT, March 20, 2007 NASDAQ 2408.21 +13.80 For info, visit access.smallcapnetwork.com S & P 500 1410.94 +8.88 Change your subscription status here Russell 2000 793.60 +6.55 VOLUME 07: ISSUE 31 Cliffs Notes for Stockgroup Groupies Hey everybody, in case you couldn't make it to Stockgroup Information Systems' (OTCBB: SWEB) webcast last Thursday, don't worry - we've got a handful of highlights for you. And whether you're a small cap enthusiast or a full-blown SWEB shareholder, we think you're going to like what we've got to say.  On the other hand, our briefing still doesn't seem to do it justice. We've always felt it's more empowering to get the whole story, rather than just a taste. So, we hope each of you takes a few moments to replay the webcast. Instructions to do so are at the bottom of today's thoughts. In the meantime.....  We teased you with a little bit of news last week. Earnings for the full year came in at $7.8 million, up 27% from the previous year. Advertising revenues increased by 33% in 2006 from 2005, totaling $4.2 million. Financial software and content systems revenues were $3.5 million, up 18% in 2006. Due to some expansion expenditures incurred in 2006, we saw a net loss of $791K.  There's something we didn't tell you though - primarily because we didn't know until after the conference call.  The fourth quarter of last year? It was merely the 16th consecutive quarter of increased revenue. Sales came in at $2.3 million, up 21% from Q3, and up 28% from Q4 of '05.  Moreover, the net loss of $791K really didn't concern us, as the company was investing in some serous R&D and product development in 2006 that would have a much bigger impact down the road. You know - the whole 'you gotta' spend money to make money' idea.  The piece of the earnings picture we weren't expecting.....$88,000 in net income for Q4. We weren't looking for any earnings in Q4, and were pleasantly surprised with a positive result.  We were under the impression expenditures from last year would still be making major impact, but now, maybe we need to rethink things. That gain, though small, says quite a bit to us. Why? It's a two-fold sign....(1) the company can profitably monetize their current R&D efforts, and (2) the company can increase sales by at least a little more than expenses.    The Heart of the Matter As much as you may be expecting us to itemize the 2006 overview and the 2007 outlook, we're not going to do it. Yeah, yeah - we know that's what we're 'supposed to do' given our role. But frankly, you can get that kind of stuff anywhere. We'd rather give you the goods you really may not find anywhere else...like some of the enlightening things we heard during the conference call's Q&A session. In the interest of brevity, we've paraphrased the questions and answers. Though we've made every effort to reproduce the spirit of the question and the answer - like we said above - there's still no substitute for the real thing (yet one more reason to check out the conference call on your own).  Q: What exactly is the upside to the Reuters deal inherited with the January acquisition of Telecommunication Systems Incorporated's Mobile Finance Division? (This was a question we were looking for some clarity on as well.)  In simplest terms, Reuters has about 70,000 customers using their wireless data service. While Reuters is among the crème of the crop in terms of market data, they needed Mobile Finance to create the technology required to make the wireless data service work. Stockgroup's role is to manage the technology connecting the Reuters data with those wireless devices. For this, Stockgroup collects a per-user fee.  The advantage Stockgroup has in the relationship is scalability, while someone else does the one-on-one marketing work. The technology is the technology, whether there's one user or a million. At the same time, Reuters is doing the heavy lifting in terms of going out and attracting new customers.  Q: Any plans to enhance public relations and investor relations? Yes, which should significantly aid the awareness effort. The company added a dedicated investment relations arm a few weeks ago. Having that work done at all is a major step in the direction of maintaining shareholder value. The public relations effort is a priority as well.  Q: What about potential shareholder dilution in the future?  As it stands right now, the company doesn't see any need to raise capital through further stock sales. Stockgroup is sitting on about 2 million in cash, and is debt free....an outstanding position to be in for a company that did just under 8 million is sales last year.  Interestingly, CEO Marcus New mentioned (volunteered, actually) that Stockgroup passed on a couple of ventures which could have been fruitful, but were too expensive to initially get involved with. So, when he says he's looking for the best way to preserve or enhance shareholder value, we have to believe it.  Of course there's more....including the corporate look back/look ahead. To get all of those details plus additional answers to investor's questions, the best thing to do is replay the webcast. You can do that just by clicking here.    Wow! If you were waiting for proof that Stockgroup's stock had some upside, we hope you didn't wait too long. We suggested some exposure to SWEB back on January 27th, pretty certain of the potential. Since then though, the potential looks like it's really being tapped.  We were fishing for an entry level of 60 cents with our initial alert. However, after seeing the stock hold right above there for a week, we realized being stingy might not pay off in this case. We resubmitted the idea on February 1st, this time without any suggested price restriction. For anyone who took action at the time, you're now up by at least a very nice 34%....and that's assuming you got in at the high of 74 cents around then - you may have done even better on the entry.  Or, even if you waited for our reiteration last week, you would have been reminded of the opportunity while shares were trading around 80 cents. Though your gain would only be around 24% from there, that's still not too bad for less than a week's worth of work.  And what's our take now that the stock has come this far? Hey, despite a big chunk of the potential gain already being realized, we still think there's a lot of meat left on the bone.  Don't forget - our target is $1.51, for starters. A move from here to there would still be about a 50% gain. Obviously it's not as big as the 100%+ gain the very earliest readers might end up enjoying. But, it's still a pretty nice chunk of change for aggressive traders seeking an idea that could possibly overcome the spring/summer lull.      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 CEL-SCI's Multikine to be Highlighted at Cancer Conference If you took our advice this weekend and watched the CEL-SCI (AMEX: CVM) webcast, then today's news may not surprise you. If you didn't get a chance to watch the webcast, then we'll again suggest you do.....very impressive stuff.  In any case, just a quick announcement - one of CEL-SCI's key people is going to be speaking to the participants at a conference for the International Academy of Oral Oncology. He'll be going over the effectiveness of Multikine in treating head and neck cancer.  Tthis kind of awareness is the kind Geert Kersten CEL-SCI was looking to create, as discussed in the webcast....though he really emphasized appealing to the institutional investor crowd as well.  Again, if you didn't catch the new presentation, be sure to click here and see it.  In the meantime, here's more on the Oral Oncology presentation.    Web2 Corp. Meets YouTube: Video Blogging a Countdown Interesting idea here...Web2 Corporation (OTCBB: WBTO), who will be launching 'YouGetIt.com' in about twenty-five days, plans to promote the new site concept between now and then by capturing the whole process on video. Each day before YouGetIt.com is up and running, the latest headaches, milestones, and final touches will be video-blogged for anybody who wants to see all the behind-the-scenes stuff we normally wouldn't see.  Could be worth a look-see. For more information about the launch-countdown video blog, click here.  By the way (and we hope you were wondering), YouGetIt.com is a site designed to focus in on a geographical market of Internet users rather than virtual market. There are two dimensions to the site...local browsers, and local advertisers. The browsers should get tailor-made surfing relevancy, while the advertisers can pinpoint ads to a specific locale. For more details, check out this page on the company's site...there's a full description there.  Hype aside, it's actually a pretty novel idea, and a good example of the Web 2.0 philosophy. Better still, it's got some serious revenue potential if the thing gets traction....seems to be much more effecient at connecting buyers and sellers than most search engines do.  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. 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