52 week range = .30 to 1.45

EPS = (-0.04)

Under $8 million in annual sales.

News of a new hire....chcik out the chart.

One has to wonder if EDIG continues to grow its eVU business and then has significant IP news via DM's efforts, how long can they keep EDIG at these levels.

Not a direct correlation, but is there ever? We can only recognize that the market is not a science and that stocks move when the market decides they are to move.

EDIG just needs a reason and that reason may come this quarter and beyond.

FYI.....check out sweb's two year chart...http://finance.yahoo.com/q/b...

In the movie 'Field of Dreams', there's a well-known line, "If you build it, he will come." However, when it comes to websites, I think the quote may need an addendum. Perhaps it's more accurate to say "If you build it, he will come.....but he may not pay for it." See, anybody can pretty much build a website. Not just anyone can make it bear revenue though.

Today's news from Stockgroup Information Systems (OTCBB: SWEB) reminded me of that premise mostly because they're one of the outfits doing 'web' right, having figured out how to grow a site-based business. The proliferation of successful websites was no accident though - the Internet's invention has also brought about a new breed of professional.....those oh-so-rare individuals who are experts at maximizing the revenue-driving capabilities of web businesses.

So superficially, Stockgroup's news may seem like a run-of-the-mill event. But, if you keep the above idea and mind as you read between the lines of today's news, you might find an edge missed by most other investors.

	A New V.P. - More Than Just A New Hire?

Stockgroup has hired a Vice President of Monetization/Advertising. I know, I know......just another new hire, right? Maybe, or maybe not.

His name is Joe McWilliams. Yes, the guy has plenty of credentials, and is more than qualified to do the job. You may not have heard of him, but you've probably been exposed to his work. He helped build Hoover's into the site eventually acquired by Dun & Bradstreet, and more recently held a similar position with Highbeam Research.

What really struck me though was not the guy's experience, but the fact that they specifically have someone for a 'monetization' role. What does that tell you?

Think about it like this....what do you think would be the best way to double Stockgroup's ad revenues? My first thought would be simply to double their traffic, and that may indeed work. But what if they could produce a 100% increase in revenue with only a 50% increase in web traffic? Better still, what if they doubled their traffic, but managed to quadruple their sales?

Now don't get me wrong - Stockgroup's site stockhouse.com has had no problems at all turning traffic into revenue. The company did just under $8 million in sales last year, with an average of 80 million page views per month spread out among 750,000 unique users. But if a hypothetical one out of every ten visitors is profitable, wouldn't it be logical to make two out of every ten visitors profitable?

Well fellow investors, that's the basic idea behind hiring this guy. He's well versed in maximizing the revenue a website site can create from its traffic. More potential sales per user or page view, and a better web traffic ROI? Yep, now I'm interested.

I think the news in itself is a pretty good reason to renew your enthusiasm about SWEB. Stockhouse.com was and is an ad-driven site, but I don't know that the ad sales focus had grown with the site's traffic. Now, with the addition or Mr. McWilliams' experience, I suspect Stockgroup will be able to take their ad revenue to the proverbial 'next level'.

	Perfect Timing

The timing of McWilliams' hire probably couldn't have been any better.

Truth be told, stockhouse.com already had a solid traffic attraction/retention program.....which is one of the keys to running a successful website. It was ranked as the second stickiest Canadian site, and ranked number one in Canadian user page views (two accolades that go hand in hand). And more importantly, the site had proven its monetary viability.

So why is now such a good time for McWilliams' entrance? Remember the news from a couple of weeks ago about stockhouse.com's partnership with Yahoo! Canada's Finance page? Stockhouse headlines are soon going to be featured on the Canadian version of Yahoo! Finance, which will be linked back to the stockhouse site. That's means instant new traffic, and likely a whole lot of it. Plus, Stockgroup intends to overhaul the entire site in the near future.

While stockhouse.com had a pretty solid web traffic rating (according to Alexa) of 9554, Yahoo! Canada's Alexa ranking is 3 among Canadian sites.....the third most trafficked site for the country. That's apt to put a whole lot of new eyeballs on the stockhouse.com site, and as a result improve the site's overall fiscal results.

You do the math here.....more traffic, and now a stronger monetization factor for each page view. I believe we're looking at not just growth, but exponential growth.

	The Chart - Told Ya' So

I think we've blogged something about SWEB's chart almost every day for the last week and a half. But, it's all been merited. It just looks to me like Stockgroup's shares are itching to start the next bullish leg of their journey.

It all started back on June 14th when the stock broke back above its 20 day average line in addition to breaking above a key resistance level. SWEB flew from 99 cents to $1.29 a couple of weeks later.

And it's not like the bears haven't had a chance to put the fire out. The stock fell from $1.10 to $1.00 in late June, but the 20 day line was there to halt the selling and restart the buying. It happened again on Friday - SWEB fell all the way to a low of $1.16 from $1.26 a day earlier....but still finished Friday at $1.22. The catalyst was - lo and behold - support at the 20 day line. (The $1.16 mark was also a 38.2% Fibonacci retracement line.)

Monday's move up to $1.25 was a nice indication of sustained investor interest. I think a move beyond the recent peak of $1.32 could draw out even more buyers, though I'm not sure if my speculative spirit would let me wait for that to happen. Besides, we've already seen so much upward momentum in the last few days....is that last little bit going to mean that much? (Of course, I believe the answer really depends on the kind of trader you are.)

Once again, our suggested stop on SWEB is 63 cents, though that may be upped soon. As for an upside target, we've still got $2.00 in view. We may be raising that bar in the near future too, if things continue to progress.