JULY 18, 2000 ---SWEB---
Stockgroup.com Holdings (SWEB - OTC:BB)
Dear Members,
Today we present July's Mid-Month Stock Profile: SWEB - This is a member only profile! This investment opportunity is expected to be seen by hundreds of thousands of investors over the next week. Take a look today, then pass this profile to a trusted friend.
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STOCKGROUP.COM HOLDINGS (SWEB - OTC:BB)
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INVESTMENT HIGHLIGHTS -
1. First Colonial Securities analyst strong buy $14 target (last week)
2. Investrend Research Strong Buy $12 target year end
3. Trading at 1.5x's est 2000 revenue peer group trading at 7x
4. Trading at 72% discount to peer group according to FCS
5. Trading just over book value Rev 1Q up 593%
6. Rev 2Q coming out next 4 weeks
7. Management team includes senior executives of Multi
Billion dollar companies (Jim Pattison Group, HBO, Bloomberg/CBS News, Ingrim Micro)
8. International expansion: own 19.4% of asiaxis.com, rolling out sites in Malaysia and Hong Kong over the next 4 months. -------------------------------------------------------
CORPORATE INFORMATION -
Stockgroup.com Holdings is a fast growing, diversified provider of "enterprise technology, proprietary financial news and B2B Internet services to financial services companies (media, brokerage firms, banks, entrepreneurs, public companies) and investors.
The company's website www.smallcapcenter.com serves investors as the leading Internet site providing financial information related to small and microcap stocks.
Southam Newspapers a subsidiary of Hollinger Publishing (NYSE:HLR) recently invested in Stockgroup.com at $6.00 per share, the company is currently trading at 29% ($1.75) of that value and according to First Colonial Securities at a 72% discount to its peer group. Recent analyst report with Strong Buy and $14 target issued this week. Click here to receive report: http://www.smallcapcenter.com/investor.htm
Stockgroup.com Holdings Inc. is a media technology company with 3 revenue streams:
1. Application solution provider (asp) by developing large enterprise financial communities for brokerage, media and entrepreneurial firms. The company charges licensing, customization and ongoing maintenance fees.
2. B2B corporate products (technology and marketing) to hundreds of public companies.
3. Proprietary news service focused on the smallcap markets. Stockgroup.Com's goal is to be the world's largest single source of unbiased financial news and information for small cap investors. Currently, financial information is largely created and distributed by a small number of large companies: Bloomberg, Reuters, Bridge, etc. Information on small cap companies is produced by numerous smaller companies, creating a highly fragmented marketplace. Small cap investors have a distinct need to be able to access reliable, unbiased information in a single source. Stockgroup.com has created this information service in North America and is beginning to expand globally.
Stockgroup.com creates revenue by licensing its technology and its proprietary news service to other brokerage and media firms and by providing technology and marketing products to public companies. The Company's first quarter revenue was up 593% to $1.24MM almost 70% of last years revenue of $1.86MM.
Stockgroup.com Holdings is a fast growing and diversified provider of financial information and Internet services to small and micro cap companies and investors. The Company's website serves investors as the leading site providing financial information related to small and microcap stocks. These stock classes are defined as companies with a market capitalization of less than $750 million and $50 million respectively. Stockgroup.com also provide Internet development and marketing services to small and microcap companies on a contract basis.
Via its website, www.smallcapcenter.com, Stockgroup.com provides an investment community environment geared towards the analysis, research, and discussion of small cap stocks. The Company's site provides a combination of traditional print media with the real time advantages of the Internet, and Stockgroup.com has over 21,000 companies in its current database. Market information is disseminated in real time via editorial commentary. Its Internet consulting business provides a recurring revenue stream that augments the paid subscription service to be initiated in the first quarter.
The Company is positioning itself to participate in the worldwide financial information business. It recently announced that it had joined an existing venture of two leading Singapore publicly listed companies, Form Holdings of Singapore, a music and production company and SMB United, an electronics company. The joint venture is known as the Asian Exchange Information Service Ptd Ltd. (AsiaXIS). Today, AsiaXIS is already an established online provider of financial information covering stock markets across Asia. Under terms of the recent agreement, Stockgroup.com is to receive US $1,060,000 and an equity position of 19.4% for the license and development of sites, initially in Singapore. After the Singapore site, the agreement calls for Stockgroup.com to develop 13 additional "financial enterprise sites" throughout the Far East. Additional revenues for SWEB will be derived from further technology licensing, development, and customization fees, as well as royalties for each additional market that AsiaXIS enters. This is the first major venture in Stockgroup.com's international expansion plans. Management is currently exploring similar ventures in Europe, which should be announced over the next two quarters.
Stockgroup on June 28, 2000 launched its first Asian site http://www.asiaxis.com ****************************************************
AD -
"have you heard the latest rumor on wall street?"
http://www.insiderrumors.com ****************************************************
RECENT DEVELOPMENTS -
Stock group continues to offer the most comprehensive information relating to the small cap industry and has positioned itself with some strategic alliances to maintain and grow its market share. In February, they announced a content partnership with iSyndicate, a leader in web content syndication on the Internet. With a network of over 169,000 websites, iSyndicate will offer small cap news and information from www.smallcapcenter.com. They also entered an agreement with Audiobasket.com, a San Francisco based Internet company that delivers personalized audio content on demand. Audiobasket will deliver the daily financial news from smallcapcenter to its users.
Stockgroup recently announced the completion of $3 million dollars in institutional funding lead by Deephaven Capital Management LLC. Deephaven is a subsidiary of Knight/Trimark (NASDAQ: NITE). The funding consists of 8% notes and callable warrants. This funding will strengthen Stockgroup's cash position and enable them to continue their international expansion. This is in addition to the $6.6 million dollars raised institutionally at $6.00 per share over the past year including a strategic investment by a subsidiary of Hollinger Publishing (NYSE:HLR) one of the World's largest newspaper companies.
Management has implemented the premium content licensing model to augment revenue generated from licensing its enterprise technology (ASP), advertising and corporate services. There are two core groups that are focused on for the premium service.
(1) Small cap investors looking for accurate and reliable information. The company currently has a proprietary mailing list of over 70,000 users who receive their daily email, the small cap express and the largest smallcap community on the Internet.
(2) Online brokers who need to increase the scope of services that they offer to clients. There is currently a convergence of the needs of the online brokerage community and companies offering financial content such as Stockgroup.com. This convergence is bulk content licensing.. The competitive nature of the online brokerage community has made transaction processing virtually a commodity. Therefore services offered by companies such as Stockgroup.com become more attractive to the online brokers who wish to offer additional content to their investors. ///////////////////////////\\\\\\\\\\\\\\\\\\\\\\\\\\\\
THE WEBSITE -
Smallcapcenter.com is a comprehensive offering of content relating to the small and micro cap stocks. The site offers the standard services typical of a financial content site including delayed stock quotes, news releases, and charts. The site also offers the investment community a broad base of services including:
-Premium editorial content and news on Small Cap Sector produced by a team of professional writers and editors. Approximately 25 original stories are published each trading day.
-Proprietary database of 21,000 public companies, including data on over 4,000 companies that have been virtually ignored by the financial information community.
-Trading station for investors to manage their portfolios.
-Screening programs for Fundamental and Technical Analysis.
-Access to third party analyst reports and newsletters on small cap companies.
To maintain the site's growing momentum, Stockgroup.com continues to build added infrastructure. This new infrastructure is designed to provide investors with expanded and timely information that is accurate, reliable, and actionable. To that end, the company also continues to invest significantly in its editorial staff. At present, this editorial staff consists of a Managing Editor, a Senior Editor, 12 full time and 10 free-lance writers all dedicated to the small cap market. The staff currently publishes approximately 25 original content pieces daily. The company is actively licensing this content to other brokerage and news companies. :::::::::::::::::::::::::::::::::::::::::::::::::::::::
RECENT PRESS RELEASES -
Monday, July 10, 2000 Stockgroup.com CEO to Interview On VCall.com - BusinessWire
First Colonial Securities Initiates Strong Buy Rating on Stockgroup.com - P R Newswire
Wednesday, June 28, 2000 Stockgroup.com announces launch of enterprise financial site in Asia - Canada NewsWire
Monday, June 5, 2000 Stockgroup.com and Cybersurf develop 3Web financial channel - PR Newswire
Wednesday, May 24, 2000 Stockgroup.com: smallcapcenter.com Selected as Forbes' 'Best of the Web' - BusinessWire
Friday, May 5, 2000 Stockgroup.com Achieves 593% Revenue Increase In 1st Quarter - Internet Wire ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
TECHNICAL ANALYSIS -
Current Stock Range - $1.00 - $1.84
Approx. Market Cap. - $14.35M
Shares Outstanding - 8.2M
Approx. Current Float - 2.2M
Avg. Daily Volume: 36,500
The company's stock has just broken its 30 day moving average, which is a strong technical indicator. ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
MANAGMENT -
Marcus New - Chairman and Chief Executive Officer of Stockgroup.com. Mr. New is an acknowledged expert in the smallcap markets having appeared on CNBC, CNN/fn, dozens of financial conferences and more.
Les Landes, President/COO - Former President of Jim Pattison Industries and Sr. Exec VP Jim Pattison Group a $3 billion dollar company with 13,000 employees.
David Andelman, Editor in Chief - Former senior news editor of Bloomberg and bureau chief for NY Times and CBS News
Tim Bush, VP Sales - Former Regional Director of sales for Ingrim Micro one of the World's largest computer companies. Mr. Bush was responsible for sales in excess of $400 million a year.
Lindsay Moyle, Chief Financail Officer - Former CFO of NTS Computer Systems a TSE listed company with Sales in excess of $35million.
Lee deBoer, Director - Former President of HBO International and Sr. VP HBO Inc., a subsidiary of Time Warner the largest media company in the World.
Dave Caddey, Director - Current Sr. Exec VP McDonald Detwiller Canada's largest Space company with sales in excess of $300 million. +++++++++++++++++++++++++++++++++++++++++++++++++++++++
RECOMMENDATIONS -
Stockgroup.com Inc. has had numerous reports and recommedations written on them in the past months.
July 10, 2000 First Colonial Securities Group, Inc. Jonathan C. Rich, Senior Vice President Click for the entire report. http://www.smallcapcenter.com/index.asp?component=aboutus.asp&page=analyst
Stockgroup.com Inc. is rated a Strong Buy based on:
+ Diversified Revenue Stream - no other financial information content provider derives its revenues from such a diverse stream by participating in both the B2B and B2C marketplace, thereby alleviating its reliance on any one segment.
+ Discount to Peer Group - stockgroup.com currently trades at a 72% discount to its peer group while achieving superior growth rates, a number we attribute primarily to liquidity concerns, a lack of sponsorship and limited research coverage.
+ International Opportunities - the Company has begun an aggressive expansion plan into international markets and is able to leverage existing content and technology while minimizing risk and capital outlays. England and Asia have been launched and we anticipate Germany launching sometime in 3Q.
+ Brand Leader - although the Company has spent heavily on its marketing campaign, its niche focus and brand recognition built up over the last 5 years has allowed them to spend less on a relative basis and achieve greater penetration rates than the larger sites.
Analyst Report April 17, 2000 Darren E. Robinson, CFA Public Analysis and Review (PAR) Certified Report Click Here for the entire report. http://www.smallcapcenter.com/aboutus.asp?page=ar041700.html&component=aboutus.asp
Recommendation: BUY
Basis of Recommendation: Mr. Robinson maintained his target price for SWEB at $12 as compared to its April 15 closing price of $1.75. "We believe the shares of Stockgroup.com are undervalued based on its current and prospective growth prospects and accomplishments, as well as by valuation comparison to its industry peers.
Newsletter Report March, 2000 Dr. Richard Geist Former Instructor, Harvard Medical School STOCKGROUP.COM Newsletter Coverage Click Here for the entire report. http://www.smallcapcenter.com/aboutus.asp?page=aprilreport&component=aboutus.asp
Recommendation: BUY to $5.00 Target Richard Geist's Strategic Investing named a top ten Investment newsletter for 1999. Ranked by industry watchdog Hulbert Financial Digest.
Analyst Report March 3, 2000 Annette Smilykova, MBA Research Analyst, Rampart Securities Click Here for the entire report. http://www.smallcapcenter.com/aboutus.asp?page=ar030300.html&component=aboutus.asp
SPECULATIVE BUY
If you are looking for information or investment advice on small cap companies, smallcapcenter.com is most likely to come to your mind. If so, why not consider Stockgroup.com, operator of smallcapcenter.com, as a high growth small cap stock for your portfolio. Stockgroup, with a current market cap of US$29 million, has the potential to blossom into full figure in the near future...
Analyst Report February 2, 2000 Darren E. Robinson, CFA Public Analysis and Review (PAR) Certified Report Click Here for entire report. http://www.smallcapcenter.com/aboutus.asp?page=ar020200.html&component=aboutus.asp
Recommendation: BUY Basis of Recommendation: We are initiating coverage of Stockgroup.com Holdings (SWEB) with a BUY rating and a 12-month target price of $12. Our reasoning is summarized as follows... @@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@
SUMMARY -
The site has received numerous accolades. Forbes just rated smallcapcenter in May 2000 as one of the best of the Net. Lycos rated the Investment community Stockgroup.com as the number one investment site for a 17-month stretch. Microsoft, Barrons, Worth, Fortune, and Infoseek have all written positive comments.
The Company's stock is currently trading at a huge discount to its peer group and almost 70% discount to its institutional financing at $6.00 per share which includes one of the World's largest newspaper company (Hollinger). The company's revenues are increasing dramatically and the company is managed by former senior executives of some of the largest companies. The company currently trades at 1.5x 2000 revenues and just over book value.
Click here to receive the recently issued First Colonial Strong Buy report with a $14.00 target http://www.smallcapcenter.com/investor.htm #######################################################
Good Luck to All, and may your investments and trades always be profitable.
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