We would like to take this opportunity to extend to our readers the warmest of wishes for the Holiday Season and a Prosperous '07.

Below find the latest news from the site www.smallcapreview.com as well as a look back at how our unbiased picks of 2006 performed.

News From the Site: 

Small-caps 'can deliver returns'... Strong stock picking and a "bias" weighted towards micro-cap stocks should provide investors with attractive returns.

Thinking small... Since 1925, small cap stocks have outperformed large caps by two to three percentage points a year with only brief periods of underperformance. After crunching all the numbers, O'Shaughnessy expects small caps to return in the range of 7.6% to 9.6% a year over the next 20 years.

Cheap Small-Cap Stocks... As for next year's results, security analysts reporting to Thomson IBES expect aggregate earnings gains of 16% for the S&P SmallCap 600 from 2006 to 2007, versus 10% for the S&P 500 and 13% for the S&P MidCap 400.

What the Market Taught Us in 2006... The market continues its love affair with small caps. The most popular small-cap index, the Russell 2000, is poised to beat or at least tie Standard and Poor's 500-stock index again. Through December 14, the Russell is up 18% while the S&P 500 is up 16%. That would make it eight years in a row that small caps have topped or tied large caps.

Small Caps Not Done Yet... Small-cap were expected to stall this year, but many are still going strong.

SmallCapReview's Unbiased Picks for 2006

ZIGO Picked at $15.99 Highest Close $19.52

CBIZ Picked at $7.48 Highest Close $8.96

FSTR Picked at $19.59 Highest Close $26.75

ESLR Picked at $11.29 Highest Close $13.07

ICOC Picked at $4.81 Highest Close $7.83

EZPW Picked at $10.57 Highest Close $16.95

EEFT Picked at $25.43 Highest Close $35.00

SPAR Picked at $12.79 Highest Close $16.39

KAMN Picked at $19.05 Highest Close $24.42

KEYW Picked at $19.57 Highest Close $24.01

DVAX Picked at $7.40 Highest Close $9.85