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Market Comment-
Threat of War Has Buyers Paralyzed |
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Technically the market looks horrid
right now. The NASDAQ, which leads the market both up and down, has now
arrived at a six year low. Traders were looking for a bounce off the July
low of 1200 to establish the the coveted "double bottom", and yesterday
it closed at 1182.17, a new six year low, suggesting that lower levels
are imminent in the immediate future.
We are still looking for the bottom
before the end of October, and improving conditions towards the end of
the year and into next year. Many stocks will enjoy 30% bounces, and this
will be easy money.
The uncertainty of war looms over
the market like dark clouds over the golf course just before your tee time.
Investors are very reluctant to step in. There is too much rhetoric on
Iraq coming out of the Bush administration for us not to go to war. We
believe an invasion of Iraq is inevitable. The Bush administration is very
busy making its case in the International arena, using Tony Blair in Britain
as its primary spokesman yesterday.
Uncertainty kills interest in the
market. The invasion of Iraq will bring the final capitulation. Traders
should stay liquid for the invasion. The market will sell off and make
it's bottom. Over the last year if you were willing to act after any of
the cataclysmic events: 911, Enronitis, and WorldCom fraud, there was easy
money to be made on the bounce. Stand by for some ideas.
In the interim here's a thought
for President Bush: Oil is $32 per barrel, trading at least $5
above where it should be were it not for the possibility of war. As long
as the possibility of war exists, prices will stay high. Inflated oil prices
hurt everybody except middle eastern producers and big oil companies, where
our current President has his roots.
Mr. Bush- if you want to help the
US economy get out of recession, help get the price of oil down. High oil
prices are deflationary as they slow business activity. Low oil prices
stimulate activity and everybody wins. Tax revenues stay the same and go
up as companies become more profitable and now have capital to fuel expansion.
The cost of running an airline, which has gone up dramatically over the
last year due to new security measures, goes down. Everybody wins except
major oil companies who's profits skyrocket.
Does anybody wonder why no one from
Enron
has been indicted yet? More on this in future editions. Over the next
few editions we will bring you some interesting historical perspective
as we wait for the war to get underway.
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Attention
Canadian Investors- StockGroup Information Systems (OTC BB: SWEB) Will
Pop Up on Your Radar Screen Soon |
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Our current profile, StockGroup
Information Systems made an announcement today just prior to the open.
StockGroup,
an internet information services company has evolved its business model
and appears to be turning the corner to profitability. To read our original
September
6th profile edition on the company, simply click
here.
Trading nearly at an all time low
as sporting a market cap of a mere $2.5 million, there is probably a double
or triple in this stock from these levels as evidence builds that the company
is turning profitable.
Recognition by investors is the most
important factor in the success of this idea. Today's announcement suggests
a lot more investors will have the opportunity to participate in this stock
in the near future.
The company announced it has applied
for a listing on the TSX Venture exchange, the Canadian version of the
NASDAQ small cap. It is anticipated the stock will begin trading with a
dual listing on both the OTC Bulletin Board and and the TSX in about four
weeks.
This announcement may not mean much
for most stocks, but it could be very important for StockGroup.
As revealed in the press release, the financial web site properties fueled
by StockGroup technology are used by 700,000 Canadian individual
investors. These same investors have difficulty purchasing shares of StockGroup
through
their Canadian brokerage accounts.
This imbedded audience will enhance
the company's ability to garner an audience as the fundamentals improve,
and as such we believe the stock should be accumulated while it remains
dirt cheap.
Here is the complete text of the
news release for your review:
| Press Release Source:
Stockgroup Information Systems Inc.
Stockgroup Retains
Canaccord Capital To Act As Sponsor For Inter-Listing On TSX Venture Exchange
Wednesday September 25,
6:02 am ET
VANCOUVER, BRITISH COLUMBIA--Stockgroup
Information Systems Inc. (OTCBB:SWEB - News) is pleased to announce it
has retained Canada's largest independent investment dealer, Canaccord
Capital to act as sponsor for the inter-listing of its shares on the TSX
Venture Exchange.
Marcus New, CEO of Stockgroup
said, "The majority of our operations are in Canada and now with our recent
acquisition of the StockHouse financial communities, we have a tremendous
number of Canadian customers and investor users of our websites. More than
half of the more than 700,000 users of the various Stockgroup websites
are Canadian. We strongly believe that being listed on a Canadian stock
market will help create shareholder value. It is often difficult for Canadians
to trade on certain U.S. exchanges. By inter-listing on a Canadian exchange,
we are removing an obstacle."
Stockgroup recently acquired
certain assets of Stockhouse Media Corp., a privately held Canadian company
that provides financial content and online community development products
to more than 700,000 members of the investment community. Stockgroup's
financial communities now include www.stockhouse.com, www.stockhouse.ca,
www.stockhouse.au and www.smallcapcenter.com. The acquisition combined
the operations of two of North America's best-known financial media and
technology companies.
Stockgroup's primary
business is the provision of private labeled financial software and content
and Public Company Disclosure and Awareness products. Stockgroup's financial
tools and content are used by some of North America's largest corporations,
including American Express, Mellon Financial and CitiGroup. Its Public
Company Disclosure and Awareness products are used by leading companies
such as Intrawest, Du Pont and Kenneth Cole.
Companies are increasingly
choosing to use Stockgroup as their supplier of choice for financial content
and disclosure and awareness products because of Stockgroup's Canadian
cost base and because of its extensive and highly flexible product offerings.
Some of Stockgroup's products include Market Indices, Stock Charts, Stock
Watch Lists, Portfolio Managers, Market Movers, Scrolling Tickers and the
management of Public Company's Investor Relation websites including the
automated posting of their news releases, SEC filings, and other critical
disclosure components.
While a significant number
of Stockgroup's customers have traditionally been U.S. based, the StockHouse
acquisition will provide Stockgroup's Canadian brokerage and public company
clients the ability to increase their exposure in the Canadian market.
Stockgroup also announced
that it is conducting a $510,000 USD private placement offering of up to
3,200,000 units at $0.25CDN per unit. Each unit consists of one common
share and one half non-transferable share purchase warrant exercisable
at $0.34 CDN for 12 months.
ABOUT CANACCORD
Founded in 1950, Canaccord
Capital Corporation is Canada's largest independent full service investment
dealer, offering a full range of professional investment services including
retail brokerage, investment banking, fixed income, research, institutional
sales and trading, international trading, insurance and estate planning
services. There are approximately 1,200 employees worldwide, including
650 licensed representatives, located in 26 offices in major Canadian centers
and internationally.
ABOUT STOCKGROUP
Stockgroup Information
Systems Inc. is a financial media and technology company. It is a leading
provider of private labeled financial content and software solutions to
media, corporate, and financial services companies. Stockgroup employs
proprietary technologies which enable its clients to provide financial
data streams and news combined with cutting edge fundamental, technical,
productivity, and disclosure tools to their customers, shareholders, and
employees at a fraction of the cost of traditional internal methods. Stockgroup
is also a provider of Public Company Disclosure and Awareness Products
for publicly traded companies. Its financial web sites including www.stockhouse.com,
www.stockhouse.ca and www.smallcapcenter.com are state of the art online
research centers for the investment community. To find out more about Stockgroup
(OTCBB: SWEB - News), 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.
--------------------------------------------------------------------------------
Contact:
Stockgroup Information
Systems Inc.
John Bevilacqua
Investor Relations Contact
Phone: (800) 650-1211
x 180
Email: ir@stockgroup.com |
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