The Micro Cap Opportunity

05/19/2008
The MCO Daily - Before the Bell for Tuesday May 20th, 2008

The Micro Cap Opportunity 'Daily'
‘Before the Bell’ for Tuesday, May 20th, 2008

On the Radar: SDVI, HTRE, YTBLA, DMOI, SYNM, BCON

This morning's top Micro Cap trading ideas include, Signature Devices, Inc. (OTCPK: SDVI), H3 Enterprises, Inc. (OTCPK: HTRE), YTB International, Inc. (OTCBB: YTBLA), Diamond, Inc. (OTCBB: DMOI), Syntroleum Corp. (NASD: SYNM), Beacon Power Corporation. (NASD: BCON).

SIGNATURE DEVICES, INC. (OTCPK: SDVI)
Up 5.00% Yesterday

Detailed Quote: http://finance.yahoo.com/q?s=SDVI.PK

Based in Redwood City, Calif., Signature Devices, Inc. creates, develops and manufactures advanced 

information technology, including computer systems, software and electronics products. One of the Company's 

premier technologies includes a blend of hardware and software for image generation technology used in video 

games and simulations. Signature Devices also owns Graffiti Entertainment, LLC, 

(http://www.GraffitiEntertainment.com), a publisher of interactive entertainment software for advanced 

entertainment consoles.

Recent SDVI News:

May 19, 2008 - Signature Devices, Inc. to Host Nationwide Teleconference Tomorrow, May 20, 2008

Signature Devices, Inc. (PINKSHEETS: SDVI) wishes to remind shareholders that the Company will be hosting a Nationwide Teleconference tomorrow, May 20, 2008 at 4:15 p.m. EDT to discuss new developments, such as the Company's plan to uplist to the Over-the-Counter Bulletin Board. The Nationwide Teleconference will be hosted and moderated by Marc Jablon, CEO of Big Apple Consulting USA. The featured speaker will be Signature Devices' CEO, Kenneth Hurley.

Mr. Hurley will update shareholders on a variety of topics including the Company's upcoming video game titles, the distribution of its titles through Amazon.com. and the upcoming launch date of its social networking site, Phatyaffle, among other developments.

"This teleconference will give us the opportunity to update our shareholders on exciting new events within the Company and answer questions concerning our future. I have been looking forward to discussing the Company's direction in a public forum and will use this occasion to cover a variety of topics in depth," stated Kenneth Hurley, CEO of Signature Devices, Inc. and Graffiti Entertainment, LLC.

There is expected to be a high demand for the call-in lines for this Nationwide Teleconference and space will be limited. Please call 1-866-THE-APPL(E) today to reserve your place and receive the information that will enable you to participate in the conference.

H3 ENTERPRISES, INC. (OTCPK: HTRE)
Up 7.53% Yesterday

Detailed Quote: http://finance.yahoo.com/q?s=HTRE.PK

H3 Enterprises, Inc. is the parent company of the HipHopSodaShop, with its corporate headquarters located at 116, John Street, New York, NY 10036. As the first publicly traded Hip-Hop company, H3 Enterprises, Inc. is dedicated to the mission of empowering young people through investment, education and economic development. (www.h3inc.com)

The HipHopSodaShops are a franchise restaurant operation that brings hip-hop music, sports and community involvement to every city where they open. The HipHopSodaShop comes complete with a healthy quick-service menu, merchandising, a state of the art recording studio, 30 giant LCD screens, the latest Xbox 360 live video games, and a large area dedicated to competitive on-line video gaming. The HipHopSodaShop is a modern day cultural entertainment center where many forms of Hip-Hop can be expressed by patrons and embraced by the community. The HipHopSodaShops carry a message of giving back to the community in the forms of empowerment, investment, and employment. (www.hiphopsodashop.com)

Recent HTRE News:

May 19, 2008 - H3 Enterprises, Inc. Announces Hip-Hop Celebrities Attending Miami HipHopSodaShop Grand Opening on May 22

H3 Enterprises, Inc. (OTC: HTRE), the world's first publicly traded hip-hop company, will launch the Miami HipHopSodaShop on Thursday May 22, 2008. The HipHopSodaShop franchise is the backbone of H3 related businesses and encapsulates not only the numerous revenue streams that the company has developed, but also embodies the "community conscious" approach that H3 applies to all of its endeavors. The launch of the Miami HipHopSodaShop marks the growth of H3 Enterprises over the last year and the expansion of the HipHopSodaShop brand.

Dr. Benjamin Chavis, CEO and President, stated today, "H3 Enterprises, Inc. is moving forward with our business plan to open HipHopSodaShops in major cities across America. Miami is a key world-class city with great economic development vitality. Miami is also an international hub of hip-hop culture with some of the world's greatest artistic talent."

Mike Fischer, General Manager of Microsoft's Xbox Marketing, stated today, "We at Microsoft are very excited to bring the Xbox experience to all of the customers who will frequent the HipHopSodaShops around the country. The Miami launch of the new HipHopSodaShop this week will afford us another opportunity to bring together the unique Xbox experience with some of the greatest hip-hop icons and celebrities in the field."

The Miami HipHopSodaShop is located at 2710 N.W. 167th Street, Miami Gardens, FL 33054. HipHopSodaShop is a full-service, conceptually-chic franchise restaurant with a healthy menu. It is equipped with a recording studio, multiple 4' x 5' video screens, the latest Xbox 360 live video game and entertainment systems and a DJ/MC booth with surround sound. HipHopSodaShop is a modern day cultural entertainment center where many forms of hip-hop can be expressed by patrons and embraced by the community. Targeted to a youthful demographic, aged 13-35, the restaurant will hold special events like "open mic" nights, live HD sportscasts, live outdoor concerts and cyber gaming competitions. The store will also carry branded merchandise, MP3 players and recorded music. The first HipHopSodaShop, located at 1241 East Fowler Avenue, Tampa, Fl, launched in December of 2007.

Festivities for the launch of the Miami HipHopSodaShop on Thursday are scheduled to begin at 6:00pm and will include a grand opening ceremony where hip-hop celebrities Fat Joe, Fabolous, DJ Khaled, and DJ Q45 and The Infamous Mad Linx from BET's Rap City will walk the red carpet. There will be an official ribbon-cutting ceremony, an Xbox 360 on-line video gaming tournament and WEDR-FM 99 JAMZ Radio will be broadcasting live. Grand opening events are free and open to the general public on a first-come, first-served basis. A VIP pre-opening party is scheduled for Wednesday night, and on each night of the week of the grand opening, there will be VIP receptions celebrating the evolution of Miami hip-hop. The Miami HipHopSodaShop launch is a celebration of the evolution, flava, and cultural genius of Miami hip-hop. The grand opening will pay tribute to the artistic talent of Miami hip-hop artists Rick Ross, Trina, Trick Daddy, Grind Mode, Flo-Rida, Luther Campbell, Ball Greasy, Gorilla Tech, Brisko, Bizzle, DJ Chipman, DJ Khaled, DJ Entyce, and DJ Ali. For more information on VIP events and to obtain VIP tickets, please call the Miami HipHopSodaShop at (305) 430-8436. For additional information on H3 Enterprises and the HipHopSodaShop, please visit www.H3inc.com or www.hiphopsodashop.com.

YTB INTERNATIONAL, INC. (OTCBB: YTBLA)
Up 29.85% Yesterday

Detailed Quote: http://finance.yahoo.com/q?s=YTBLA.OB

Recognized as the 35th largest seller of travel in the U.S. in 2006 by Travel Weekly, YTB International, Inc. provides Internet-based travel booking services for home-based independent representatives in the United States, Puerto Rico, the Bahamas, Canada, Bermuda, and the U.S. Virgin Islands.

The Company operates through three subsidiaries: YourTravelBiz.com, Inc., YTB Travel Network, Inc., and REZconnect Technologies, Inc. YourTravelBiz.com focuses on marketing online travel websites through a nationwide network of independent business people, known as 'Reps.' YTB Travel Network establishes and maintains travel vendor relationships, processes travel transactions of online travel agents and affiliates, collects travel commissions and pays sales commissions. Each RTA directs consumers to the YTB Internet-based travel website. The REZconnect Technologies division operates as a travel vendor relationship management company and offers franchises of brick and mortar travel agencies. For more information, visit http://www.ytbi.com/investor.

Recent YTBLA News:

May 19, 2008 - YTB International Announces Financial Results for the First Quarter of Fiscal 2008

YTB International, Inc. (OTC Bulletin Board: YTBLA) ("YTB" or the "Company"), a provider of Internet-based travel booking services for travel agencies and home-based independent representatives in the United States, Puerto Rico, Bermuda, the Bahamas, the U.S. Virgin Islands, and Canada, today announced its financial results for the three month period ended March 31, 2008.

Total revenue for the quarter ended March 31, 2008 increased 76.7% to $42.7 million, compared to $24.2 million for the first quarter last year. The Company's property and equipment increased from the December 31, 2007 balance of $15.4 million to $18.9 million as of March 31, 2008 or 22.7%. The number of RTAs increased to 138,814 in the first quarter of 2008 from 82,932 in the comparable quarter of 2007. The Company believes the significant increased number of RTAs is attributable to the emerging market shift for travel services to the Internet.

Net loss for the first quarter of 2008 was $3.5 million, or $0.03 per diluted share, compared to a net loss of $2.2 million, or $0.02 per diluted share, for the first quarter of 2007. The loss is primarily attributable to stock awards, and promotional and expansion expenses totaling approximately $3.1 million. As of March 31, 2008, the Company had $1.3 million in cash and cash equivalents. Net cash used in investing activities was $4.1 million during the first quarter of 2008 compared to $1.3 million used in the first quarter of 2007.

Scott Tomer, Chief Executive Officer of YTB, commented on the first quarter results, stating, "We are pleased by the significant increase that we experienced in our top-line results during the quarter. This growth speaks directly to the demand for our travel related services, and our ability to meet or exceed specific sales growth objectives through diligent execution. We are acutely aware that sustainable growth requires reinvestment in our company, and with this in mind, we incurred several charges during the quarter, directly related to the promotion of our brand, and the retention of our top performers and personnel. During the quarter, we also incurred expenses related to our expansion into three new countries to help build our international presence. Primarily due to these investments in our company, we reported a loss for the quarter."

Mr. Tomer continued, "During this first quarter we continued to focus on the sale of travel by our RTAs, as well as the strengthening of our executive team. We welcomed two new members to our Board of Directors, Mr. Paul Hemings and Mr. Burt Saunders, and we are excited by the valuable experience that they bring from their respective fields. Looking forward, we plan on continuing to execute our stated mission to revolutionize the travel field by offering affordable travel and unique opportunities for motivated individuals to participate within this burgeoning industry.

"We see our recent move to the Over-The-Counter Bulletin Board as a positive step forward for us, and welcome the new investors that are now able to participate in the growth of our company."

DIAMOND, INC. (OTCBB: DMOI)
Up 25.00% Yesterday

Detailed Quote: http://finance.yahoo.com/q?s=DMOI.OB

DMOI has determined to diversify its business interests, with an initial effort focused on the oil and gas industry. DMOI expects to announce other diversification initiatives in the future.

Recently, DMOI opened its first two online Poker web sites, IslandBlueCasino.net and VegasBetLive.com, for-entertainment-only sites legal for users in the United States. Island Blue Casino and VegasBetLive.com were designed to create a revenue stream for the company, through the use of click-through advertising programs, such as that offered by Google Adsense(TM) and Amazon.com.

In addition, DMOI owns the rights to patent-pending voice-recognition and fingerprint biometric security technologies. These security technologies will be incorporated into DMOI's WifiCasino GS wireless, hand-held gaming system, which includes the hand-held gaming unit known as the "GS3." With the passage of Nevada Law AB471, which authorizes the use of mobile communication devices for gaming in public areas in Nevada casinos. DMOI continues to seek a hotel/casino to serve as the demonstration site for its WifiCasino.

Recent DMOI News:      

May 19, 2008 - Diamond I Names Petroleum Marketing Industry Veteran to Board of Directors

Diamond I, Inc. (OTCBB: DMOI) announced that it has named Thomas J. Gray to its board of directors. Mr. Gray, with his extensive background in the petroleum marketing industry and in alternative energy, is expected to provide strong leadership to DMOI as it develops its Alternative Energy Technologies and Oil and Gas Efficiency Technologies business segment. In addition to his duties as a director, Mr. Gray has agreed to provide needed consulting services to DMOI.

After his appointment to the DMOI board, Mr. Gray stated, "I couldn't be more excited about this opportunity and thank the DMOI board for their faith in me. I believe I have developed, over my career, innovative ideas that will make DMOI an active participant in the oil and gas and alternative energy industry in the near term and establish DMOI as a successful Alternative Fuels, Alternative Energy Technologies and Oil and Gas Efficiency Technologies company over the long term. Given the board's support, I have already begun to acquaint my established business contacts, both within the oil and gas industry and Wall Street, with my new venture and have been quite encouraged."

"While our search for a new director with oil and gas experience has been protracted, we definitely believe we've brought in the right man at the right time, a strong businessman with a much needed new approach to our overall business," said David Loflin, DMOI's CEO. "Tom's participation will serve our shareholders well. Our entire board is pleased to welcome him."

Thomas J. Gray, 59, has, since 1981, served as President and Chief Financial Officer of Gray Oil, Inc., a privately held marketer of gasoline, diesel and lubricants based in Colorado. Also, from 1999 to the present, Mr. Gray has served as Manager for Infinite Energy, a privately held company engaged in energy-related research and development. From 1999 to 2007, Mr. Gray served the Colorado Wyoming Petroleum Marketers Association in various capacities, including Co-Chairman of the Board, President and Trustee. In addition to his over 25 years of marketing ethanol and, since its market introduction, bio-diesel, Mr. Gray was a past winner of the "Northern Colorado Entrepreneur of the Year." Mr. Gray is a graduate of Colorado University, Boulder, Colorado, with a B.S. degree in Electrical Engineering and is a licensed Professional Engineer in the State of Colorado

SYNTROLEUM CORP. (NASD                                SYNM)                                                                                                
Up 31.02% Yesterday

Detailed Quote: http://finance.yahoo.com/q?s=SYNM

Syntroleum Corporation owns the Syntroleum(R) Process for Fischer-Tropsch (FT) conversion of synthesis gas derived from biomass, coal, natural gas and other carbon-based feedstocks into liquid hydrocarbons, the Synfining(R) Process for upgrading FT liquid hydrocarbons into middle distillate products such as synthetic diesel and jet fuels, and the Bio-Synfining(TM) technology for converting animal fat and vegetable oil feedstocks into middle distillate products such as renewable diesel and jet fuel. Together with Tyson Foods, Syntroleum is focused on siting, engineering and constructing a plant that produces clean renewable synthetic diesel and jet fuel using low grade fats and greases as feedstock. The 50/50 venture - known as Dynamic Fuels - was formed to construct and operate multiple renewable synthetic fuel facilities, with production on the first site beginning in 2010. The Company plans to use its portfolio of technologies to develop and participate in synthetic and renewable fuel projects. For additional information, visit the company's Web site at www.syntroleum.com.

Recent SYNM News:

May 19, 2008 - Syntroleum Regains Nasdaq Compliance

Syntroleum Corporation (NASDAQ: SYNM) announced today the Company received a letter from Nasdaq on May 13, 2008, indicating the Company has regained compliance with the Nasdaq Stock Market.

On February 1, 2008, Syntroleum was notified that its common stock failed to maintain a minimum bid price of $1.00 over the previous 30 consecutive business days as required by the Marketplace Rules of The Nasdaq Stock Market. Since then, the closing bid price of the Company's common stock has been at $1.00 per share or greater for at least 10 consecutive business days. Accordingly, Syntroleum has been notified by Nasdaq that the company has regained compliance and the matter is now closed.

BEACON POWER CORPORATION. (NASD: BCON)
Up 20.83% Yesterday

Detailed Quote: http://finance.yahoo.com/q?s=BCON

Beacon Power Corporation designs, develops and is taking steps to commercialize advanced products and services to support stable, reliable and efficient electricity grid operation. The Company's primary business strategy is to commercialize its patented flywheel energy storage technology to perform frequency regulation services on the grid. Beacon's Smart Energy Matrix, now entering production following approval for use in three of the country's five open-bid regulation markets, is designed to be a non-polluting, megawatt-level, utility-grade flywheel-based solution that would provide sustainable frequency regulation services. Beacon is a publicly traded company with its research, development and manufacturing facility in the U.S. For more information, visit www.beaconpower.com.

Recent BCON News:

May 19, 2008 - Beacon Power Wins Environmental Approval to Build 20 MW Flywheel Plant in Stephentown, New York

Beacon Power Corporation (NASDAQ: BCON), a company that designs and develops advanced products and services to support more stable, reliable and efficient electricity grid operation, announced today that it has gained the necessary environmental approval to build its first 20-megawatt flywheel frequency regulation plant in Stephentown, New York. The approval, referred to as a "negative declaration" under the State Environmental Quality Review Act (SEQRA), was granted by the Stephentown Planning Board during a meeting held on May 15, 2008. The Board's vote on the declaration was 5-0.

Beacon Power has now complied with or passed all relevant federal, state and county environmental, wildlife and archeological requirements for the proposed plant. Due in part to the late hour and additional items on the Stephentown Board's agenda, a secondary vote on a special permit to allow the site to be used for a utility purpose was deferred until the Board's next meeting on June 19th. This permit, which is customarily issued following a SEQRA negative declaration, was also recommended for approval by the town's engineer.

"We are very pleased that the Stephentown Planning Board was able to reach this decision," said Bill Capp, president and CEO of Beacon Power. "Their favorable vote on the negative declaration was based on considerable evidence that we supplied that satisfactorily addressed the 20 stringent criteria of the SEQRA program. In every case we had to demonstrate that our project would have little or no environmental impact. The Stephentown consulting engineer who reviewed our documentation gave a favorable opinion, and in the formal vote the Board unanimously agreed. We expect the Board to accept the engineer's recommendation and approve the special permit next month."

Beacon plans to have multi-megawatt flywheel frequency regulation plants running in two locations before year end. In addition to the continued favorable progress in New York and Massachusetts, the Company is also developing sites in the PJM Interconnection grid operating region.

About the State Environmental Quality Review Act (SEQRA)

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