3Com

3Com (COMS) is a leading provider of secure, converged voice and data networking solutions for enterprises of all sizes.

3Com offers a broad line of innovative products backed by world class sales, service and support, which excel at delivering business value for its customers. Through its TippingPoint division, 3Com is a leading provider of network-based intrusion prevention systems that deliver in-depth application protection, infrastructure protection, and performance protection.

Acorn Energy (Nasdaq: ACFN) likes to take a stake, if not outright purchase, struggling companies that have invested millions of dollars and spent many years perfecting their innovations. These companies are just beginning to reach the "Tipping Point"; in other words their technology is now ready to be profitable in the market but they may not have the cash or resources to scale up. This method has worked extremely well for Acorn in the past, having successfully brought several companies public and turned private companies profitable.

What does Acorn's current portfolio of companies have in common? For starters, they're green. From catalyst regeneration technologies and services to reduce noxious emissions by fossil-fuel power plants, to improving efficiencies of the electric grid, to delivering mail in Germany. There's even sonar technology that allows owners of fossil fuel infrastructure assets such as oil rigs, pipelines and oil terminals to protect their investments.

It's not easy watching your portfolio erode on a daily basis. The Dow is down 16% for the year, the Nasdaq is down 15%, and the Russell 2000 Small-Cap Index is down 12%. Consumer confidence is near the lowest level since 1980.

It's at this stage that many investors will reach a tipping point, the point where they throw in the towel to stop the pain. It's called capitulation.

SmallCapReview's last focus Stock Cyberonics (CYBX) is up 45% since our introduction. In fact our four current focus stocks are up between 26% and 65% since their introduction, not too bad considering the current environment.

Below find two small-cap stocks that we feel will outperform the market.

Following find two stocks that we feel will outperform the market in the near term. One is oversold and one is undiscovered.

TASER International (TASR) $7.46, is in our opinion currently in an oversold position, down more than 20% since last week. The company reported 1st quarter earnings having more than doubled to $1.2M, from the prior year's $494,554, but missed the Street's expectations. TASR is currently trading just off it's 52 week low and makes for what we feel is an attractive entry point. For its part, this week the company said it's board approved a plan to repurchase up to $12.5M in common stock.

T is the twentieth letter in the alphabet. It is the most commonly used consonant and the second most used letter in the alphabet behind E. It is also the first letter in the ticker of our three newest picks. Picking stocks that begin with a certain letter is hardly an investment strategy but rather happenstance to be sure.

So dot your i's and cross your t's, and have a look at these.

The following are four smallcap stocks that we are adding to our Focus list. We feel each has the potential to outperform the market in the near and long-term.

We are pleased to announce that Capstone Turbine (Nasdaq: CPST), ABX Holdings (Nasdaq: ABXA), StealthGas (Nasdaq: GASS) and Dialysis Corporation of America (Nasdaq: DCAI) have been added to our list of Focus Stocks.

Perhaps no institution has more power to affect the nation's economy than the Federal Reserve, the independent central bank established by Congress in 1913. Under the leadership of its influential chairman, Ben Bernanke, the Fed steers the economy most directly by periodically raising and lowering the federal funds rate, which banks charge to each other on overnight loans. Such rate changes can take six to nine months to work completely through the economy.

While Fed policy changes frequently are attributed to the central bank's Chairman, Ben Bernanke, decisions actually are made by the Federal Open Market Committee. The Federal Open Market Committee consists of twelve members: the seven members of the Board of Governors of the Federal Reserve System; the president of the Federal Reserve Bank of New York; and, for the remaining four memberships, which carry a one-year term, a rotating selection of the presidents of the eleven other Reserve Banks. The FOMC holds eight regularly scheduled meetings per year to direct the conduct of open market operations by the Federal Reserve Bank of New York in a manner designed to foster the long-run objectives of price stability and sustainable economic growth. The FOMC also establishes policy relating to System operations in the foreign exchange markets.

Town Sports International (Nasdaq:CLUB) is one of the two leading owners and operators of fitness clubs in the Northeast and Mid-Atlantic regions of the United States and the third largest fitness club operator in the United States, in each case as measured by number of clubs. CLUB operates under the brand names of New York Sports Clubs, Boston Sports Clubs, Washington Sports Clubs and Philadelphia Sports Clubs. In addition, it operates three clubs in Switzerland.

The company operates approximately 149 clubs, including 99 fitness clubs in the New York metropolitan market, 21 fitness clubs in the Boston market, 19 fitness clubs in the Washington, D.C. market, 7 fitness clubs in the Philadelphia market, and 3 fitness clubs in Switzerland. It serves approximately 472,000 members in the United States and six thousand in Switzerland. The company's long-term goal is to have 350 clubs, growing at 12 to 15 locations a year.

Established in 1980, Radyne Corporation supplies the satellite industry with an extensive portfolio of modems, converters, encoders and amplifier products and accessories. Radyne is headquartered in Phoenix Arizona, with ISO 9001 certified design and manufacturing facilities in Phoenix Arizona, Santa Clara and San Diego California. Radyne's sales and support offices are located worldwide in Europe, Asia, Latin America and Africa to ensure timely, knowledgeable support to a broad based international set of customers.

RADN Investor Highlights

Bioenvision is planning to develop products for other therapeutic areas as well. In addition, the Company has in-licensed technologies to reduce the impact of blood-borne and hospital-acquired infections.

Bioenvision's product line can be viewed here.

The Company expects to close on the acquisition of 20 retail stores from G&R Felpausch Company, in the first quarter of 2008.

SPTN Investor Highlights

Consolidated net sales for the 13-week fourth quarter increased 23.6 percent to $559.5 million from $452.8 million in last year's 12-week fourth quarter.

Operating earnings improved for the fifth consecutive quarter, increasing 34.2 percent to $14.0 million from $10.4 million in the same period last year.

Net sales have improved by at least 12 percent for the past four quarters and operating earnings have grown by double digits in nine of our last 11 quarters.

Net earnings for the quarter increased 36.4 percent to $7.2 million, or $0.34 per diluted share, from $5.3 million, or $0.25 per diluted share, in the same period last year.

Reduced outstanding borrowings by approximately $19.2 million during the fourth quarter. The reduction in outstanding borrowings was the result of improved cash flow from operations due to higher earnings and improved inventory turnover rates.

Added to Standard & Poor's Small-Cap 600.

Entered into a purchase agreement to acquire 20 retail grocery stores, two fuel centers and three convenience stores, from G&R Felpausch Company.

Spartan Stores is the nation's tenth largest grocery distributor with warehouse facilities in Grand Rapids and Plymouth, Michigan.

With that in mind, we would like to introduce you to thee individual stocks that are worth watching.

Overhill Farms (OFI) operates as a custom manufacturer of frozen food products in the United States. Its products include entrees, plated meals, meal components, soups, sauces, poultry, and meat and fish specialties. The company offers its products to foodservice, retail, and airline customers through its internal sales force and outside food brokers.