The Smallcap Newsletter QualityStocks Report 5/22/07

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After seven long years, which included a 2 1/2-year period from March 2000 to October 2002 that saw nearly 50% of the broader market's value evaporate, the S&P 500 finally eclipsed its record closing high intraday.

Unfortunately for the bulls, a growing sense that stocks are overbought at current levels resurfaced late in the day in the form of a sell program to take most of the steam out of what was initially shaping up to be a momentous day for equities.

Stocks opened with little fanfare but inched their way higher for most of the session as investors embraced another round of healthy M&A activity. The biggest news came from Alltel which agreed to be taken private for $27.5 bln.  The acquisition played into our Overweight rating on the Telecom sector.

General Electric meanwhile, confirmed the sale of its plastics division for $11.6 bln.

However, speculation surrounding GE's divestiture that surfaced last week, and Alltel being rumored for several months as a takeover target, didn't exactly provide investors with overwhelming evidence to build on seven straight weeks of gains for the Dow and S&P 500.

From an industry leadership standpoint, Energy paced the way for a third consecutive session; but that was due largely to a rally in oil prices. Crude for June delivery surged 2.1% to $66.27/bbl, its highest level this month, which left investors questioning the impact of higher energy prices on the consume.

Of the remaining six sectors finishing higher, Technology was the only other area staging a notable advance, which was also evident in the Nasdaq noticeably outperforming its blue-chip counterparts.

The tech-heavy Composite's year-to-date advance was just 5.9% as of Friday's close, lagging year-to-date gains of 8.8% and 7.4%, respectively, for the Dow and S&P 500.

And now for our Small Cap News… brought to you by Intelligentias, Inc.

Intelligentias, Inc., ITLI through a group of data intelligence companies, provides homeland security products to law enforcement agencies, telecommunication companies, and Internet service providers worldwide.

During the next few days The QualityStocks.net Daily will be profiling the companies that will be presenting at the RedChip Small-Cap Investor Conference in San Francisco , California on May 29-30, 2007 in recognition of a what we in the Small Cap world feel is a tremendous event to be a part of.

iLinc Communications, Inc. announced this month that is unaudited financial's for the fiscal year ending March 31, 2007. The company’s total revenue is expected to be $14.4 million, a 15% increase, when compared with revenues of $12.5 million for the same twelve-month period last fiscal year.

DOR BioPharma, Inc. announced recently that it plans to initiate a clinical development program in humans with its Lipid Polymer Micell oral drug delivery technology. The LPM drug delivery technology allow for the oral administration of drugs that are water-soluble but poorly permeable through the gastrointestinal tract.

Leuprolide is one of the most widely used anti-cancer agents for advanced prostate cancer in men. Leuprolide is currently available only in injectable, depot and subcutaneous implant routes of delivery which limits its use and utility

BioForce Nanosciences, Inc. announced today that the company has recorded its highest quarterly revenue in company history. Revenue was $358,755 versus $201,376 in the first quarter of 2006. The company's Net loss for the first quarter of 2007 was $923,317, as compared with a net loss of $1,252,562 the first quarter of 2006. BioForce Nanosciences develops and commercializes nanotech tools and solutions for the life sciences