Good news here - Stockgroup Information Systems (OTCBB: SWEB) didn’t blow through the roof at the open today on the heels of news about its Yahoo! Canada partnership. The open was $1.12, and the high so far has been $1.18. Though the gap between $1.09 and $1.12 might be a little intimidating, this one didn’t end up being too hot to handle. The likely average price anybody had to pay was about $1.16. Not bad.

What I’m awed by, however, is the volume. After only 30 minutes of trading, 238,000 shares have already traded hands. We only traded about 145,000 shares yesterday, so I have to think a big player or fund manager jumped in this morning. Just for perspective, 238,000 shares is a little more than 1/4 of a million bucks worth of trade.

Anyway, if you wanted in, you should be in at a decent price. I still believe it’s going higher from here….possibly today.  

I think I’m having deja vu all over again.

Just yesterday afternoon I looked at Smart Energy’s (OTCBB: SMGY) post-news bar, deciding it was mostly bullish in terms of follow-through. Today, I feel I can say the same thing about Stockgroup (OTCBB: SWEB). After releasing some pretty exciting news this morning regarding a deal with Reuters, the stock really started to get some traction.

Specifically, the stock touched the 20 day line one last time (having never actually retested the 100 day moving average), then proceeded up to $1.09. The 9 cent gain from the previous price of $1.00 meant a 9% price appreciation, of course. Even bigger was the volume - a little more than 145,000 shares traded hands today. That was the highest volume (bullish or bearish) in over three weeks, and the second highest volume day in over five weeks.

I still contend a break past the recent peak of $1.11 would really set fire to any buying effort, but this is a pretty good start. A close above the 50 day line at $1.09 would carry some bullish weight as well.

Well, it was the first day back from Smart Energy Solutions’ (OTCBB: SMGY) possible ‘wash & rinse’ day, where all the sellers get flushed out, leaving only the buyers behind. If I were giving the bulls a grade on their results, I’d probably give them a B+. I’d be willing to change it to an A- if they corrected their test.

Goofy analogies aside, I really did like the follow-up on yesterday’s deep plunge and late-day rebound. Today (Tuesday), SMGY gained 3 cents, or 5.45%, to end the session at 58 cents. It was another wide-range day, but the high and the low were much better.

I think more importantly, we saw big volume….volume bigger than Monday’s. That technically qualifies as ‘accumulation’.

Like I said in Monday evening’s edition, the key to any rebound would be in how (or if) the stock came out fighting the next day. Though there are still some things I’d like to see happen on this chart, I confess - I’m getting very enthusiastic here. I think we may be seeing a light at the end of the tunnel.

From here I’d still like to see a close above recent highs around 62 cents. This would - by default - carry shares above the 100 day moving average (which has recently popped up as a resistance level). Overall though, I think this is a good first-day-back from a big doji bar.

In case you’re only a regular reader of the e-newsletter or the blog, you may want to take a look at some of the new - and exclusive - commentary we’ve posted on the homepage.

Last week in the ‘Heating Up’ column we studied some interesting international ETF opportunities. On Tuesday, we updated the ‘Trader’s Corner’, complete with a couple of new trading ideas. We’ve got a new ‘Market Wise’ edition as well; this one explains a couple of tools to help spot the market’s likely tops or bottoms.

Be sure to check it out, and remember, you’ll only find those special features on the Small Cap Network website.

Q: I read the investment data on the Battery Brain and find it to be quite interesting. However, I believe most battery failures are caused by internal shorting of two or more plates, thereby preventing sufficient starting current to flow to the starter motor. How would that situation be remedied by the Batter Brain? Thanks in advance for your response.

A: The chemistry of Battery failure can be caused by many issues . The life of a battery is shortened every time the battery is allowed to be drained below the safe level and the Battery Brain will disconnect before your vehicle get to that level.

With age the battery will hold less of a charge and prior to the Battery failing you will be alerted by the Battery Brain disconnecting every morning because minor electrical draws from your clock , radio or computer will bring the battery to the disconnect point. This is your warning that the chemistry of the battery is at a point where it should be replaced.

Check out Clearly Canadian’s (OTCBB: CCBEF) recent chart. I saw the beginning of this pattern a few days ago, but it really hasn’t become clear until very recently. Between the May 29th peak at $3.25, the June 7th low of $2.60, and the current price of $3.00, we’re seeing a pretty good ‘V’ shape.

Generally speaking, this is a bullish sign that any major lingering sellers were washed out on June 7th, and the reigns were handed over to the buyers on June 8th. It’s not exactly the kind of thing I’d be willing to bet the farm on, but it at least improves the odds.

Something to add to the observation (and part of the reason I think the scales tipped in favor of the bulls on the 8th)…..look at the volume. The distribution bars were mostly shrinking in early June. On the 8th, we started to see accumulation, which - so far - appear to be getting taller.

There was also a convergence of a lot of moving averages near the June 7th low, which may have enhanced the support effort. Either way, it seems to have worked.

As I’ve said before, just because a journalist says something doesn’t make it true, meaningful, or helpful. Be careful about assigning a cause-and-effect relationship.

Might be a good reason to re-read a recent Market Wise column we published on this very subject. Click here to see it.

Call it a delayed reaction if you want, but it looks like our Smart Energy Solutions (OTCBB: SMGY) idea may finally be getting some traction. We first published on SMGY on May 30th, and then again on June 11th, as there was big news both days. Though we saw plenty of volume each time, we’re just now starting to see the stock move. Oh well…better now than never.

So far we’ve hit 60 cents - the high point for over a month. And, volume is outstanding. In fact, we may be on track for a record volume day (though that would be an enormous feat). Even if we don’t break a volume record however, it’s good to see this company’s story is finally starting to get some attention.

So, here’s what I’m thinking….I hope everybody who wanted in is already in. The move to 60 cents means any of our readers are already up on their trade. A move to 61 cents would match the most frequent ceiling we’ve seen since April. A move to 62 cents would match a three-month high. I believe anything past 62 cents could constitute a breakout, and then we may really start to see SMGY move.

So why now? A couple of possibilities, I’m guessing. First, I’m wondering if today is the first day of the dynamic change, where the large cap luster starts to fade and small caps begin to draw a crowd. Second - and probably more likely - I wonder if a big fund or money manager has finally made a decision on the opportunity. That was a something I mentioned both times we’ve published on Smart Energy so far….it was an easy-to-understand idea, and the numbers looked good. After doing a little due diligence, a big player may finally be accumulating.

Either way, the action today is encouraging.

A lot of times stock charts can be a little ambiguous, and trying to get a read on them at all might be a mistake. This is NOT one of those times….at least in my opinion.

Take a look at Stockgroup’s (OTCBB: SWEB) chart the last couple of days. Granted, the market’s revival may have been the catalyst, but I think there’s something going on here much bigger than a little luck with timing.

The April/May pullback was pretty decisive, even if well-controlled. That’s fine. However, the last few days have been a chart technician’s dream. Look where the selling started….right at the 100 day moving average line (blue). As a result, the resistance line (purple) that had been guiding SWEB shares lower since early April has been broken. With a major ceiling now out of the way, I have to wonder if this is the beginning of the next wave of buying. Personally, I feel it is.

In any case, if you’re looking for a good trading set-up, I think this is a worthy one. The technicals are near perfect, and the underlying company is getting the kind of results usually needed to support a rising stock. This may be a great entry or re-entry point.

Not quite sure why yet, and not sure it really matters, but something’s going on with Commerce Planet (OTCBB: CPNE). It’s up today nearly 20% so far, and moving like a rocket. The volume is very heavy too. There’s no news behind the move….at least not yet. However, that’s what I like best about it.

My guess is a switch got flipped, and a major player or fund just decided the price wasn’t going to get much better than somewhere around $1.10. Hence, the buying. The thing is, those bursts of accumulation can last for a few days, driving the price higher the whole time. In addition, the huge move is starting to get the attention of the rest of the market. Considering just how unproductive the rest of the market has been of late, I believe the average retail investor could start to put some money on the table as well.

In other words, we may be looking at a breakout move. Not that it’s without the usual risks, but I kind of like the odds versus the potential reward here. This is a really strong move, and if it keeps getting traction, may well be the beginning of the recovery. Take a look and decide for yourself, but I personally may be jumping on this one.

In fact, I know some of the other Small Cap Network staff already have a position……One of the managing members of TGR Group, LLC has purchased 10,000 shares of CPNE in the open market with a average cost basis of $1.47.

I’ll post my own disclosure if I pull the trigger.

A little reward for current Phinder Technologies Inc. (OTCBB: PHDT) owners this morning…..we just learned the company is paying a stock dividend. For every twenty shares of common stock you currently own, you’ll get one more. Also for every twenty shares you currently hold, you’ll receive one warrant with an exercise price of 18 cents. The warrants will be good for about six months.

With PHDT currently trading at 14 cents, those warrants may not mean a whole lot right now. However, we’ll remind you this stock was trading at 29 cents in April, and wasn’t even really driving revenue at the time. Between now and then, a few profit centers have been set up (Argentina and Uruguay), with many more on the verge of getting rolling. Point being, I feel PHDT will eventually trade at what much better levels, rewarding those investors who stuck it out based on the bigger picture.

Side note: I know the stock hasn’t been trading all that well lately. I attribute most of that to market-wide weakness rather than a Phinder problem. It happens. Just don’t throw the baby out with the bath water, as they say. I still feel Phinder is a great opportunity, and the best time to get in (or get more) is when nobody else thinks the same. We’re at new multi-month lows now, and almost at new all-time lows. Yet, the company is likely to find more success in the next twelve months than it ever has before. It doesn’t make sense to me, and I believe it’s a disparity that won’t last very long. Just food for thought.

Here’s the press release.

The company said they were going to do it, and we didn’t doubt it. Moreover, we think today’s news is just the beginning, yet is simultaneously a sign that all of their previous R&D efforts were on target.

OK - enough with being coy. What we’re talking about is Stockgroup Information Systems (OTCBB: SWEB). Or more specifically, we’re talking about their key product, StockStream.

StockStream is an investment/stock-trading piece of software with a lot of powerful tools and very affordable price. While the company offers StockStream subscriptions to individual retail investors (one-at-a-time), StockGroup is working on selling subscriptions en masse - to the brokerage firms, who in turn offer it to their customers.

What’s the appeal to a brokerage firm? For starters, StockStream is incredibly robust….better than some of the data platforms I’ve paid a heck of a lot more for. Rather than going out and designing their own platform that would (1) be sub-par, and (2) be more expensive to maintain, the brokers just outsource the job. For each user the brokerage firm provides, StockGroup receives a subscription fee.

The ‘news’ is the signing of the latest deal. National Bank Direct Brokerage - the fourth largest online broker in Canada - is now providing StockStream to its top tier clients. We’ve also learned National Bank isn’t the first…..Disnat and Laurentian are also offering StockStream to their customers.

No word on how many users there are yet. We’re assuming it’s a respectable number, but frankly, I don’t even think that’s the important part. When I see three major firms bring the product on board, the first thing that crosses my mind is “the product meets the need”. Regardless of the number now, I suspect there will be more later. And, with three leading firms in Canada now offering StockStream, I’m also kind of counting on other brokers to jump on the bandwagon, not wanting to be outdone by the competition.

The nicest part about it all? There’s 100% scalability. The platform has been deployed, but there’s no limit to the number of users that can subscribe. In fact, not only will per-subscription costs NOT go up with more users, but they’ll actually go down, enhancing the company’s profitability.

The first few institutional sales have been made. Others will now be easier. This may be just the push StockGroup needs to start an exponential growth spurt. It sure makes me think next quarter’s numbers could show some major growth.

For more on the news, click here.

I don’t think it’s any secret the Small Cap Network is an opinionated source of stock-related information. That’s by design - you can get ‘data’ anywhere, but meaningful opinions still seem to be a rarity.

It’s a point I wanted to stress today before I shared my personal take on some recent news from CEL-SCI Corporation (AMEX: CVM). They provided the facts; I’m just providing my opinion on what it ultimately means. In this case, I think the news may be a proverbial grand slam for the company. Whether you’re a full-blown CVM owner, or just mulling it over from a distance, trust me - you’ll want to keep reading.

First things first though, particularly if you’re new to the company.

Though it’s not the only drug CEL-SCI is working on, their primary focus has been on the development of a drug called Multikine as a treatment for head and neck cancer. Though Multikine is still being evaluated through the required FDA procedures, early testing indicates it’s very effective. In fact, the research so far shows a 33% improvement in survival of patients using the experimental treatment (which is quite a bit by medical standards). There’s really nothing else quite like it that’s tumor-specific in addition to being non-toxic.

OK - now with everybody on the same page….

Over the past few months, from my perspective, CEL-SCI has gone from being a question mark to being an exclamation point. You may recall in November we posted a blog entry asking our readers to write to the FDA and urge them to allow Multikine to proceed into Phase III testing (the final stage of the FDA approval process). At the time, the company had been waiting 22 months to hear from the FDA, with no explanation for the delay. Needless to say, everyone - the company, investors, even patients - was getting frustrated. It didn’t bode well for Multikine’s future.

Then on January 16th, things changed for the better - CEL-SCI got the greenlight from the FDA to take Multikine into the next stage of testing.

Though Phase III is obviously still not a final approval, we learned something after the news came out that we didn’t know before….approximately 2/3 of the drugs making it to Phase III testing are ultimately awarded FDA approval. I felt this was an outstanding sign of Multikine’s chances, especially considering Phase III was pretty much a large-scale version of Phase II, and was likely to yield the same results.

Well, I thought the story was pretty good as it was. I believe today’s news made it even better though…..far more encouraging than I ever imagined.

Multikine’s use as a head and neck cancer treatment has been designated as an ‘orphan drug’ by the FDA. What does it mean? The ‘orphan’ status is a good thing. To encourage the development of drug treatments for diseases that are very rare, the FDA sweetens the pot, so to speak.

Why would they do this? Let’s face it - big pharmaceutical companies are more interested in targeting common diseases and illnesses. If there’s not enough of a potential customer base for a treatment, it just doesn’t get developed. Needless to say, that’s far from fair for those affected with uncommon illnesses. 

As you may have guessed by now, head and neck cancer is considered a rare disease by the FDA. It’s estimated there are 500,000 (or more) new cases of head and neck cancer every year. Perhaps by GlaxoSmithKline (NYSE: GSK) standards that’s not a lot, but here’s where the power of being small is huge…….relative to CEL-SCI’s size, 500,000 potential patients each year is a massive number - plenty big enough to encourage them to develop a drug like Multikine. It may be a billion dollar opportunity, which is enormous for CEL-SCI.

Here are the main benefits of having an orphan-drug status:

1) Seven years or exclusive marketing rights after the drug is approved (regardless of the patent’s expiration)
2) Potentially, a faster approval time from the FDA
3) Potential grant money - up to $350,000 per year for three years, in CEL-SCI’s case
4) Tax breaks - up to 50% of the R&D costs

Now, I haven’t told you anything you can’t read (or infer) in the press release for yourself - yet. Here’s my perspective…..

There is one thing that strikes me about Multikine being granted this orphan status. Is it me, or is the FDA rolling out the red carpet for Multikine (to the largest degree that they can anyway)? I recall the company using the term ‘fast-track’ a few months ago to describe something they were hoping for Multikine to benefit from. I don’t know if this is what they were talking about or not, though I suspect it is. I do recall that the FDA fast-tracked drugs when they were desperately needed, and there were no alternatives quite as viable as the one in question.

The way I read between the lines, this makes the odds of Multikine getting final FDA approval even better - and they weren’t bad to begin with. Yeah, there’s always ‘a chance’ of something in the meantime, but the FDA is now doing what it can to support Multikine’s progress. Seems to me that’s a big deal. Yes, I see it as yet one more reason to own CEL-SCI. The dream seems to be making big progress towards becoming a reality.

Click here for the press release.

We always try to answer all legitimate questions from individual readers, but after thinking about these three specific ones, I wanted to share my answers with all our readers…..so everyone can get a good feel for how we’re seeing things. Just remember they’re opinions unless otherwise noted.

1) The latest on challenger boats–real co. or scam?

Challenger Powerboats (OTCBB: CPWB) isn’t a scam - just a disappointment. The factory and boats are real, and they’re well-respected within the boating world. They just aren’t selling enough of them. I believe that problem can be overcome, but it’s apparently going to take longer than we first thought….maybe until 2008 to really get things rolling. What do investors do in the meantime? Your discretion.

Ideally, I feel the company needs to do $12 million (annually) to prove their mettle. Why $12 million? That’s what the pre-merger combined sales total was between Challenger and IMAR in 2006.  Anything beyond that is growth. Anything less than that is contraction. I still think it’s possible for CPWB to pay off eventually…..just not sure when - perhaps not soon enough. It does concern me that they don’t even seem like they’re even close to being on track to reach $12 million by year’s end.

2) CPNE.OB???I am shocked. You have recommended Commerce Planet (CPNE.OB), I believed in it from September, but I am shocked with price in last three weeks. Any comment?

Commerce Planet (OTCBB: CPNE)….good company - not so good stock. I think the early ‘exponential growth’ phase may be winding down, which is a tough act to follow. Also, I’ve heard consistent whispers that this company can get new customers, but just can’t retain them. There are only so many willing buyers out there, and then you run out of them. Still though, this company can and does put up some nice sales and earnings. I think CPNE may be undervalued, but unless the rest of the market agrees, it doesn’t matter - the stock won’t budge. Momentum is half the battle….a battle that CPNE is losing right now. As far as this stock is concerned, I think a rebound with upside follow through is possible, but watch the chart more than the news. But, I don’t look for the same kind of growth going forward.

3) Dear Editor What’s with WBTO?????? I believe this was one of your prior recommendations. Any idea why the bottom is falling out? Thank You.

I believe the bottom is falling out for Web2 Corporation (OTCBB: WBTO) shares because eventually you have to achieve some sort of monetary success. For months now we’ve heard about how much revenue Web2 could draw, or what kind of money they could make. Yet, we’ve not yet heard how much they’ve actually done, which makes me think they’re not doing much in the way of sales - if anything. They were late on their SEC filing as well, which is a red flag. Maybe the company is prepped to make a fortune, but they really need to go ahead and do it rather than just talk about it. Till then, I’m not surprised the stock is headed lower.

Other thoughts

Yeah, it’s definitely a tough time to be involved in the small cap world right now. These names have not traded well recently, but then again, no small caps have. I think it’s important to distinguish between general market tides and individual stock weakness. The recent overall weakness may be what’s wrong with CPNE. I’m not sure about CPWB. And WBTO? I think it may have been headed lower no matter what was going on in the market.

Be sure to check out Saturday’s edition for more recent small cap perspective.

We haven’t heard much from Orchestra Therapeutics (OTCBB: OCHT) lately, but that doesn’t mean they haven’t been busy. This morning, they released on update on Phase II testing of their potential multiple sclerosis vaccine. The drug, called NeuroVax, appears to enhance the number and capability of regulatory T cells (the good kind) to identify and kill pathogenic T cells (the bad kind).

Though there’s still some work and testing to be done before it even gets to the market as an approved MS treatment, it looks pretty promising so far. Better still, NeuroVax may also serve as a vaccine against psoriasis and rheumatoid arthritis.

This is pretty good news for the company, and even better news for those affected by autoimmune disease. There’s no timeframe yet on when this might proceed to the next level, but it may be worth keeping an eye on.

Equally importantly (ok, maybe more importantly), Orchestra still says they intend to update the Phase II testing data on IR103 sometime during Q2…..which ends this month. IR103 is their HIV treatment, which the company has recently suggested would be dropped, but even more recently said they’d let this upcoming batch of data determine the next course of action.

I’ve seen the term ’strategic alternative’ used a few times regarding the decision, so I’m not personally hopeful that IR103 will continue being tested. But, maybe I’m being too pessimistic. The company has been mostly unwilling to provide any additional commentary besides that.

One way or another, we’re going to get that news soon.

In the meantime, OCHT has certainly been tough to own. Maybe the impending IR103 news could do the trick and pull the stock out of its rut. But, considering they have no revenue-bearing product right now, and no assurance they ever will (and being years before they ever did if they did), I have to wonder if the stock has used up all of its goodwill. A couple of disadvantageous (in my view) financings didn’t help any either.

I guess we’ll find out, but I’d personally need to see a lot of planets line up in favor of Orchestra before I became confident again.

For more on the MS treatment news, click here.

There’s no question the last several weeks have been a roller-coaster ride for CEL-SCI (AMEX: CVM) investors. Late last year shares were trading at 55 cents, and they peaked at $1.08 in late May. In between, there was plenty of ebb and flow….perhaps enough to make you wonder whether or not this thing was ever going to find a foothold.

After last week though, we believe we’re starting to get some clarity on the chart. The low of 80 cents we saw when May turned into June also tagged what is now a long-term support line (blue, on our chart). This same line was the bottom in December, in addition to being the bottom in March as well as April. In other words, there’s probably something to it. All things considered, this is a line we want to watch going forward. It’s currently at 81 cents. 

To a lesser degree, the 50 day moving average has also been support. It’s currently at 82 cents.

Score another win for the Clearly Canadian (OTCBB: CCBEF) marketing juggernaut…..one of their products has found its way into a huge chain of convenience stores, increasing exposure to consumers. Clearly’s ‘dailyENERGY’ drink - one of their newer enhanced waters - is now going to be carried by the Couche-Tard company.  

If you’ve never heard of Couche-Tard, you’re not alone - I hadn’t either. However, most of our northern neighbors probably have. Couche-Tard is the second-largest convenience store chain in North America. They have a major presence in Canada (being based there), but they also have a strong presence in the United States under a different name….Circle K. All in all, the company has 5300 stores.

Needless to say, this is a big deal. Aside from increasing the number of vertical channels through which a product can be sold, the relationship opens the door for horizontal expansion as well. That just means where one product is being carried now, it may be easier to introduce other products later to these same vendors.  

When I take a step back, I’m again reminded of what’s really been going on here. Clearly Canadian not only did a 180 last year, but has continued down this growth path. I just see today’s news as yet one more piece of evidence to that end.

Side note: The stock has been holding up reasonably well after last week’s bizarre surge from a close of $2.85 on the 25th to an open of $3.25 on the 29th. I tend to get a little nervous after big moves like that, as I’ve seen it just start a vicious cycle of profit-taking. In this case however, there appears to be support being formed at $2.80, while the selling slow-down was also accompanied by significantly (and consecutively) lower volume. In other words, the shake-up is probably temporary, and CCBEF’s chart can now get back to business.

For more on the Couche-Tard deal, click here.

Phinder Technologies’ (OTCBB: PHDT) chart appears to have, at the very least, laid a foundation at the 18 cent mark. You’ll notice that’s a 38.2% Fibonacci retracement from April’s peak. This line was tested in early April, early May, and again in early June. Each time it managed to hold up as support, despite some pretty strong selling attacks.

So what do we do with the information? Not necessarily a lot for the time being. It’s just something we’re encouraged to see, as it may keep shares aloft while the company builds up a following. If nothing else, we now have a baseline from which to monitor progress.

Though we’re certainly pleased a floor has been established, it may be a little too tight to use as a stop. (Remember, our suggested stop is actually 14 cents.)  

Interesting development here on the Titan Global (OTCBB: TTGL) chart…..we may be at a reversal point, which I welcome with open arms.

The pivot seems to be - albeit very loosely - the grand-daddy of all moving averages….the 200 day line. TTGL bounced off of it in early May, and seems to have made a nest around there more recently. In fact, the shapes of the bars around the 200 day line also lend themselves to the idea of an upside reversal. How so? They all have long tails, meaning despite a relatively deep intra-day low, they managed to close near the upper end if that’s days range. It’s a subtle hint, but still has bullish implications.

Additionally, the 38.2% Fibonacci retracement level may have a hand in the rebound effort.

Of course, today’s big gains are what brought all of this to my attention. Titan shares are currently up nearly 8% on no news, despite the market being down about 0.3%. When we get that kind of relative srength (out of nowhere) right as some key support lines are being retested, there’s usually a reason. In this case, I feel the reason could be a bigger player was just waiting for the right moment (i.e. price) to step in.

In any case, it’s something to keep an eye on, particularly if you’re shopping around for an ideal entry or re-entry level.

Note that Phinder Technologies (OTCBB: PHDT) is slated to undergo a little cosmetic surgery - the company is changing their name to Zupintra Corporation Inc. in the near future. If the new name rings a bell, it’s because ‘Zupintra’ is part of the name of the venture they’re working on in South and Latin America….Zupintra-Panama.

Not a big deal, though I do like the convenience factor of having a corporate name match the name customers are familiar with…..it just eliminates any confusion. However, aside from the ticker and name change, nothing else is changing - Zupintra is still a high-octane company we think is on the verge of explosive growth.

For more on the name change, click here. However, there’s not a whole lot to add other than what we just said. The company says they’ll let us know more when the time comes.