Small Cap Network Blog

It may have been a while in the coming, but sometimes things can be worth the wait. Stockgroup Information Systems (SWEB) announced today they’ve officially struck a deal with Yahoo! Canada to have their StockHouse content featured on the Yahoo! Canada Finance home page.

Basically, this puts Stockgroup’s primary web property - StockHouse - front and center with a big chunk of Canadian investors. In fact, Yahoo! Canada Finance is the biggest investment-oriented portal the country offers.

The benefit should be clear here….exposure, eye-balls, traffic, etc. StockHouse is going to be introduced to a bunch of new people - the secret recipe for growth. Once the new browsers make their way to the StockHouse site, its inherent ’stickiness’ will do the rest.

By the way, for those of you who already saw the StockHouse link on the Yahoo! Canada Finance page and thought that was ‘the deal’, you’re not alone…I thought that was it too. As it turns out, the original idea was much more than that; it just got put on hold. The small link you and I were looking at before was apparently nothing compared to what it’s supposed to be now.

The deal was perfectly timed too. The new StockHouse site has shed its ‘beta’ status and is now live. And none too soon either….I think the site’s tweaking dampened the sell-ability of it (not to mention diverting resources from the marketing effort). With the tinkering complete, the stock may start to get some deserved attention.

Speaking of the stock, take a look at the chart below. SWEB’s slide from a peak at $1.45 to the recent low of 36 cents pretty much mirrors the point when the new website was started to when it was finished. We’re not entirely surprised to see the stock perk up lately, now that the site is done.

Is it time to start wading back into Stockgroup’s waters? It may well be; someone seems to think so anyway. Accumulation has been huge since the stock has gotten this low. And why not? The company has never been better-positioned for revenue growth, and the current market cap is right around last year’s revenue total. We think that’s about half of what its valuation should be.

In the meantime, here’s the Yahoo! Canada Finance news release.

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