To OTC Journal Members:

It is the dream of every microcap investor to see pennies turn into dollars. It doesn't happen as often as we would like, but after today's news investors in StockGroup Information Systems could see the dream realized. 
 

StockGroup Information Systems, Inc Surges To New High- Is This Just the Beginning?

StockGroup Information Systems, the subject of our September 6th profile release at $.19, made a new high today, closing at $.29 for a solid 52% gain over five months. However, based on today's news which came out after the market closed, StockGroup is likely destined for much higher levels over the remainder of 2003.

If you are not familiar with StockGroup, now would be a good time to review our archive section on this company. Read the remainder of this edition, then scroll back up and click here to get to that section. If you have any interest in microcap stocks, you will find today's edition very exciting.
 
 
 

Company BackGround

StockGroup was born with the intention of becoming the premier destination web site for information on small and microcap stocks. They currently own and maintain www.stockhouse.com, and www.smallcapenter.com. Their business model was predicated on generating advertising revenues. Like some many of the brethren, this model proved flawed.

Rather than walk away from a $40 million investment, they decided to leverage the financial content systems they had developed, and evolve to a new business model. StockGroup is now 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.

When you visit a web site for SEC filings, stock quotes, charts, or technical analysis, the data you could get could be coming from StockGroup. Their customers include American Express, CitiGroup, NY Life, Dupont, and many others. 

Their financial content also powers MSN Canada, and Bill Gates said the following: "The Stockgroup solution allows us to continue to be a leader by providing our users with the latest up to date financial news, while providing the most cost effective solution."

StockGroup's evolution took a quantum leap today. The company has mutated to a new level. Read on.
 

StockGroup Signs Distribution Agreement With Associated Press

Today, just after the market closed, StockGroup and the Associated Press jointly announced they have entered into a distribution agreement whereby the Associated Press will now act as a marketing arm for StockGroup's financial content management and software system to AP’s worldwide network of members and customers.

The Associated Press is the largest and oldest news gathering organization in the world. AP provides news content in text, audio, video, graphics and photos to more than 15,000 news outlets with a daily reach of more than 1 billion people worldwide.

AP recently formed AP Digital, the division assigned the task of bringing new digital content to AP's enormous customer base. After an exhaustive investigation and months of negotiations, behemoth AP has decided to sell StockGroup's financial content.

Although it is unknown how much this will impact StockGroup's financial performance both short and long term, we expect shareholders of StockGroup to be rewarded with a significant surge in price.

In our October 8th edition we stated a good target price for the stock would be a double from the $.16 level at which the stock was trading. When the market opens on Thursday morning we are certain the stock will have achieved that target.

Shareholders who were looking to take profits in this range might want to reconsider on the heels of this news. StockGroup's business model will generate significant profits as revenues increase. Incremental increases in revenues won't be matched with corresponding increases in overhead, thereby allowing a considerable amount of money to flow to the bottom line. With AP as their marketing partner, one could take a leap of faith and assume revenues will increase dramatically in the future, and profits will flow.

As we reported in our November 16th edition, Investrend Analyst Michael Whitney placed on $.55 to $.65 price target on the stock, predicated on earnings projections of $.05 per share in 2003.

Based on today's news, we believe it is highly likely Whitney will increase his price target, the stock will respond accordingly. Also, the relationship with AP is likely to bring a whole new audience to the stock which bodes well for much higher levels as sales increase. 

Congratulations to shareholders of StockGroup. These are the kind of days you dream about. If you don't own the stock yet, now would be a good time to consider establishing a partial position with an eye towards picking up more on pullbacks. With endorsements from Bill Gates and the Associated Press it seems a good bet.
 

Weekend Edition Missed By Many

We had a technology problem, and this past weekend's edition only got to about 25% of our members. Some may have received multiple copies.

We believe the problem has been rectified, and today's delivery should have gone smoothly.

The weekend edition, entitled Consider Life 450 Years Ago, can be accessed by clicking here. It contains fascinating information on the origins of many of the phrases we use today. There was also some coverage of a recent contract win by XML Global Technologies with Lockheed Martin.

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Click here to receive your FREE 30-Day Trial Membership with no further obligation. Sign Up Today! 
 

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MarketByte LLC has received no compensation in the form or cash or securities for coverage of StockGroup Information Systems. Currently, there is no formal relationship between the two parties. Both parties are contemplating an informal relationship wherein MarketByte may receive benefits in the form of advertising and/or technology services. This should be construed as a potential conflict of interest. 

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