Investing in small-cap stocks can be very difficult because there are many concepts to understand, and the serious trader must learn them all well. Here at Breakout Investments we give you the edge by presenting you with only the best companies offering a great Return on Equity, an amazing Debt to Equity ratio, outstanding Revenue Growth and much more.

Current Small-Cap Stocks to Watch:

Five Star Quality Care, Inc. (FVE)

Five Star Quality Care, Inc. (AMEX: FVE) is a national healthcare and senior living services provider with more than 21,000 employees in 230 locations nationwide. With more than a billion in annual revenues, the company trades at a market cap of $97 million, providing a price to sales ratio of only 0.09! Five Star also trades well below its Book Value per Share of $3.85. To view our research, visit the following link: FVE Stock Alert

In just one month, the stock went from $3.00 to $4.12 for 37.33% Gains!

Volterra Semiconductor Corp. (VLTR)

What if we told you we found a company that is making over 10 times the profit it made last year (even with current economic conditions) and its stock is now trading near a multi-year low? Would this be craziness? We actually did find a company with this incredible growth rate and punished stock price. Not only is Volterra's business growing rapidly, but it also has $64 million in the bank with absolutely no debt. To view our research, visit the following link: VLTR Stock Alert

In approximately 6 months, VLTR made investors 57.4% Gains!

Recent Plays:

First State Bancorp. (FSNM)

First State provides services, through its subsidiary First Community
Bank, to customers from a total of 40 branches located in New Mexico and
Arizona. Trading at a market cap of only $12 million, the company has
$165 million in cash and cash equivalents. Furthermore, FSNM has a book
value of $3.76 even though shares are trading at only $0.56! To view our
research, visit the following link: FSNM Stock Alert

In four months, FSNM skyrocketed 143% to hit $1.36

Fuqi International, Inc. (FUQI) - 2/22/09

Fuqi International engages in designing, developing, promoting, and selling of precious metal jewelry in the People's Republic of China. The stock has a P/E of 3.69 and Forward P/E of 3.07 (this compares to the S&P 500's average P/E of 13.2 and Forward P/E of 13.3). Insiders own approximately 52.8% of the outstanding shares, most of which is held by CEO Yu Kwai Chong. To view our research, visit the following link: FUQI Stock Alert

In just a few months, FUQI is up more than 217% from our alert!

Warren Resources, Inc. (WRES) - 1/24/09

Warren Resources, Inc. is an independent energy company focused on exploring and developing domestic oil and natural gas reserves. Currently trading at a P/E of 2.55 and PEG of merely 0.05, the company has $552.6 million in assets and $156.9 million in liabilities. In November, insiders bought more than a million dollars worth of stock, giving investors strong confirmation that this is an excellent time to take a position. To view our research, visit the following link: WRES Stock Alert

Although it took 8 months, the stock went up 85% from our initial alert!

CommVault Systems, Inc. (CVLT) - 9/28/08

We presented this company earlier this year and recognized 50%+ gains! The stock has since then pulled back to just a dollar above its 52-week low in the midst of the recent market turmoil and presents another trading opportunity. 90% of the shares are held by institutions and a director recently showed his support by purchasing $137,500 worth of stock.

This stock was another winner for us, this time giving subscribers 30% gains!

American Oriental Bioengineering Inc. (AOB) - 9/28/08

Together with its subsidiaries, the company engages in the development, manufacture, and commercialization of a range of pharmaceutical and healthcare products. Currently all of their products are approved by the Chinese State Food and Drug Administration (SFDA). In the pipeline, American Oriental has over 400 SFDA approved products that have yet to be commercially launched.

We featured AOB only a short time before the global economy's collapse in October. If investors held through the turbulent time, they would have eventually made 8% gains in approximately four months from our alert.

AAR Corp. (AIR) - 6/10/08

Analysts are very enthusiastic about this stock with 7 of 9 calling it a "Strong Buy" and the other 2 calling it a "Buy." The stock has a book value of $14.57, which is only $1.32 from yesterday's closing price! Both the Training P/E and Forward P/E ratios are super low at 9.55 and 7.22, respectively. Our partner, PeakStocks.com's founder, Chris Fernandez, has previously stated, "By every single metric I use, and believe me, I use a lot of them, AAR should be no less than DOUBLE from where it sits right now, and still be undervalued!"

AIR hit $18.72 for 20% gains from our alert in less than six weeks!

GeoEye, Inc. (GEOY) - 5/14/08

After Q1 2008 earnings were released, the stock dipped to $16 a share, then recovered most of the loss by closing at $19 a share. Currently, from a technical analysis point of view, the share are oversold. RSI is at 27.52 as of Tuesday's close and the stock's price is resting just above a support line created last year. The money flow indicators are showing strong, positive movement as shares trade hands at this lower level.

GEOY has made 80% gains for subscribers who bought on the triple bottom formation, but we will still continue to watch this stock as it has potential to go further; even at this point.

Dialysis Corp. of America (DCAI) - 6/19/08

DCAI has the lowest market cap and volume of any other small-cap stock we have featured so far, making the risk and volatility greater, but also increasing potential rewards. However, the risk is well balanced with solid fundamentals. To view our research, visit the following link: DCAI Stock Alert

After our alert, DCAI reached $7.93 on unusually high volume for approximately 13% gains from our alert last month.

Ambac Financial Group, Inc. (ABK) - 6/10/08

Ambac Financial Group, Inc. (ABK) has had a very tough time since mid-2007. In just a year, the company's stock has fallen from $94 a share to just $2.02. Right now may be a good time to put this stock on your radar. According to TheBuyList.com, Fidelity Growth and Income just added 9.3+ million shares, adding to the millions more recently bought by other funds. To see many other reasons to put this stock on your radar, please visit the following link: ABK Stock Alert.

ABK reached a high of $5.99 for 200% gains in less than eight weeks! Later the stock continued to reach $7.58 for 335%+ gains!!!

The Ensign Group, Inc (ENSG) - 5/4/08

ENSG has a trailing P/E ratio of only 8.20, Return on Equity of 22.37%, and a market cap of less than 200 million. Insiders, institutions and mutual fund owners hold most of the stock's float. Insiders hold the largest portion totaling at a remarkable 42.56%. What makes this stock even more interesting is that it possesses similar traits that Wal-Mart had in its youth.

Since announcing this was a featured stock one month ago, ENSG has passed $12 a share, posting a 25.8% gain! Strong earnings and positive developments within the company have led to this strong Bull Run.

Agria Corporation (GRO) - 4/14/08

GRO went from a low of $3.52 to a high of $5.05 in only four days! That's a 43.5% gain! After retracing, the stock had another bullish run and hit $8.20 for 133% gains!

CommVault Systems, Inc. (CVLT) - 3/3/2008

More than 90% of the stock is held by institutions and the company has zero debt with 95+ million in cash and equivalents. 3 analysts believe it is a "Strong Buy," 6 believe it is a "Buy" and 2 believe it is a hold, while no one believes it is a "Sell." Just recently Robert W Baird upgraded the stock's rating from "neutral" to "outperform" and set a price target of $19 (35.7% higher than the current trading price). Click HERE for more info 

In just 14 trading days, CVLT went from our alert to $15.06 for 13.6% gains! Only a couple months later the stock hit a high of $18.65 for 50.4% gains!

TechTeam Global Inc. (TEAM) - 2/11/08

The stock has a very small market cap and can move quickly in both directions. Just two weeks ago the stock went from $8.12 to $9.25 in two days for 14% gains, which clearly illustrates what the stock is capable of doing. One analyst is currently covering the stock with a "Buy" rating and price target of $18 per share. The book value (mrq) is at $8.836 (Closing price was $7.99) and the stock has logged a Quarterly Revenue Growth Year-over-Year of 40.70%

TEAM saw its shares trade at prices as high as $9.57. That's a 21.1% gain in less than 5 weeks! Not bad for a small cap stock on the Nasdaq exchange. We announced that it was a new featured stock when it was trading for around $7.90.

Ness Technologies Inc. (NSTC) - 12/7/07

Most of the analysts covering the company have given the stock a strong buy rating. The mean rating is 1.6 out of 5 (1 being the best and 5 being the worst) and the price targets issued have averaged at $15.75. The fourth quarter earnings for this year are anticipated to be as high as $0.31 cents a share, which is almost three times that of the second quarter earnings.

In just one month NSTC went from our alert at $9.20 to $10.04 for over 9% gains. The stock later ran up fiercely in May to hit $11.63 for 26.4% gains!

Neuralstem, Inc. (CUR) - 12/10/07

CUR was highlighted by two large promotional newsletters over the weekend. Both publications were not compensated for their promotion, but have generated much hype over the company. Neuralstem essentially has the potential to heal the paralyzed and give them the ability to walk again. The company has already shown its potential by healing paralyzed animals in the past.

More than 40% gains have been made from the day we announced that CUR is a featured stock. All of these gains were made within a few weeks!

Reed's, Inc. (REED) - 10/17/2007

Approximately four months ago we announced that REED is a new stock featured on our website. Within two months, the small-cap stock reached over 45% gains. We believe REED may be ready for another run soon, so are featuring it again on our current watch list. 

Once again we successfully called this stock at the right time as it reached $7.50 for over 7% gains.

Ambassadors Group Inc. (EPAX) - 10/31/2007

EPAX is currently bouncing after a 43% fall. The stock fell after EPAX announced that only 26,200 travelers were signed up for its 2008 travel programs compared to 37,300 travelers for its 2007 programs, which will negatively impact its 2008 earnings. W. Quillen Securities analyst Samuel Nicholls stated, "Although the enrollment drop is significant, the sharp drop in Ambassadors' shares was unwarranted."

Before experiencing an explosion in price Friday November 2nd, EPAX consolidated for two days. From the day we released the play to Friday morning's significant price rise, the stock generated over 5.5% gains.

Multi-Color Corp. (LABL) - 10/23/2007

LABL announced after yesterday's closing bell that it has plans to expand its manufacturing operations by purchasing a 247,000 sq. ft. building. The company believes that the new facility will improve manufacturing efficiencies while providing needed capacity for long-term growth.

LABL reached $23.09, which is 13.2% higher than the price it was just three days ago when we announced the stock as one of our featured small-cap stocks.

Health Grades Inc. (HGRD)  - 10/7/2007

HGRD is a new stock featured here at Breakout Investments. The chart has been in a consolidation pattern for the past six weeks and we believe that it is ready to breakout soon. The stock is currently trading above its 50 and 200-day moving averages, which is a requirement for many investors.

In less than two weeks from our alert, Health Grades Inc. (HGRD) stock prices increased 10.8%. We are very pleased with these large gains for the amount of time that our website has featured this stock.

China Clean Energy, Inc. (CCGY.OB) - 10/1/2007

CCGY is both a China stock and an Alternative Energy play. China Clean Energy recently reported $16.8 million in revenues and $1.7 million in net income. The company is expected to build a new biodiesel plant in Jiangyin that would increase its biodiesel capacity an additional 100,000 tons. Keep this stock on watch as may reach new prices this week.

This stock had a 6.9% run in one day

China Finance Online Co. (JRJC) - 9/16/2007

This play waa featured as a "One to Watch". The company specializes in providing online financial and listed company data and information in China.

JRJC exploded the past three weeks for more than 175% gains. Congratulations to the ones who held for these major gains!

FMT, URZ - 9/16/2007

These two plays were featured as "Ones To Watch" before Monday's trading bell. Both of them had HUGE gains and outperformed the market significantly in only one week!

Fremont General Corp. (FMT) increased 21.6% and Uranerz Energy Corp. (URZ) increased 21.2%

Multi-Color Corp. (LABL) - 6/26/2007

The stock was highlighted as #1 on TheStreet.com's "Top 5 Small-Caps", and could rebound from its recent dip.

This stock has made more then 6% in less then a week with plenty of potential to go further. I am extremely satisfied with these gains and will continue to watch its future performance.

This play out-preformed the market by gaining 5.3 % in 6 trading days

REEDS, Inc. (REED.OB) - 6/2/2007

This company has been expanding fairly quickly, and still has plenty more room for growth. It should be a nice investments for those with patience.

REED reached a high of $10.90 from our alert in June, which was released while the stock was trading under $7.50. The gains made were greater than 45% in just two months!

Sonic Solutions (SNIC) - 5/22/2007

Sonic Solutions dropped 13.5% two days ago and is slowly regaining it's losses.

6% gains were made in just two weeks. Congratulations to the ones who got in.

Cohu Inc. (COHU) - 5/16/2007

eCollege.com (ECLG) - 5/1/2007

eColleg.com is on it's way down and will be a great stock to find the bottom. It is expected to continue it's upward trend once it does.

In 5 days 4.6% gains were made. Right after I issued the sell signal, news came out of a revenue increase, so the price may go up further.

Imperial Industries Inc. (IPII) - 4/9/2007

Imperial Industries will go up on hurricane formation because they repair the devastation caused by them (big revenue potential). Forecasters are predicting a strong season this year (Click HERE to learn more about the 2007 Hurricane Season). This should go to $20 or more in the next 5 months, but it might take a dip before it arrives there.... there is one thing to keep in mind though, this company doesn't meet all of my requirements, this is more of a technical analyst play then a fundamental one.

10.5% gains were made on this one, not bad for about a one month period. I do plan on returning after the financial come out.

Rochester Medical Corp. (ROCM) - 5/3/2007

This thing tanked for apparently no reason at all, but it should bounce back hard once it finds bottom. This stock has been very successful for me in the past and I think it's going to make more money for investors soon.

Approximately 10% was made with this one in only 2 days

Terra Nostra Resources Corp. (TNRO.OB) - 4/30/2007

Terra Nostra Resources Corp. is a technical analyst play. I believe that it has hit bottom or will be soon. I do not have privy information, but from what I can see, I expect some news soon.

All of a sudden this stock exploded for more then 40% gains. I am retiring this stock although there could be more coming.