SUNH-NASDAQ

Sun Health Care Group
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NGD-AMEX

New Gold Inc
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DFNS-OTCBB

Defense Industries International
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ALLN-OTCBB

Allin Corp.
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Fellow Investors,

Yet again, Micro Cap investments proved to be an island of stability in a sea of overall stock market volatility. In fact, Greystone Logistics (OTCBB: GLGI), one of our clients, has performed so well during this general market downturn that its value has doubled! This may be surprising to some but not to us: During a broad market sell off, as the large institutional investors dump their holdings, many large cap stocks decline accordingly. Meanwhile, since the Micro Caps are not widely traded by those institutions, they tend to either maintain their value or even appreciate despite the surrounding market turmoil. Micro Caps trade according to two primary factors:

1. Company Performance:  Even in a negative market, if a Micro Cap company is progressing well with regards to earnings and revenue, the stock is likely to make significant gains.

2. Exposure:  No matter how well a Micro Cap is performing, if no one knows about it, how is it relevant? Certainly, every good investor would you like to know about Micro Caps trading at two times earnings and growing at 85% but so few do. That's why it's critical to stay informed.

An excellent way to do that is through a free trial on E-Gate, the outstanding real time quote platform at www.alphatrade.com Since Alpha Trade is an EMC partner, this offer is available to all of our subscribers. So, to sign up for this free trial, e-mail me at This e-mail address is being protected from spam bots, you need JavaScript enabled to view it and we will get you registered.

Without further ado, here are our four favorite stocks for 2008:


1. SUNH-NASDAQ - Sun Health Care Group


With an estimated market cap of $776.11 Million, Sun Health could be categorized in the small to mid cap range. Neil Hennessy of the Hennessy Funds (whom my wife and I had the pleasure to meet at the San Francisco Money Show) confirmed my positive recommendation of this stock during his recent appearance on CNBC. With the first of the Baby Boomers retiring this past year (and tens of millions to follow soon), the timing for this operator of skilled nursing facilities could not be better. While reviewing the company's web site at http://www.sunh.com/Production/SunBridge/sb_map.asp

I noticed that, despite Sun Health's presence in 20 states, there are, of course, 30 others where it has yet to expand. So, here we have a strong and well-established company which still has plenty of room to grow. This is why we believe that there's lots of value in these stocks and, consequently, have already purchased over 1000 shares.


2. NGD-AMEX- New Gold Inc

One of our colleagues at Southwest Securities told us about this Canadian gold play when it traded on the Vancouver Stock Exchange several years ago. As a perennial "flight to safety" during turbulent markets, it's advisable to have some holdings in the gold industry. Now that New Gold has listed its shares on the AMEX, we felt that the time had come to introduce this unique opportunity to our subscribers.

The prospects for this company are very exciting as the Company has recently received a mine permit clearing the way for the construction, operation and reclamation of the New Afton Mine. The Company also announced the completion of the surface rights acquisition for the New Afton project from Teck Cominco Ltd., on October 25th.

New Gold has approximately $218 million in cash and cash equivalents along with total short-term investments of $153 million (this amount reflecting a recent adjustment) that are subject to the Montreal Accord restructuring. The Company has 37 million shares outstanding. http://www.newgoldinc.com/


3. DFNS-OTCBB-Defense Industries International

A leading global manufacturer of personal military and civilian protective equipment, this Israeli company has excellent growth potential. There is so much demand for these products that Defense Industries has a backlog of 3.5 million unfilled orders from companies and governments (including several lucrative U.S. government contracts) around the world. Here at Emerging Markets we know that large backlogs are a solid indicator of high product demand and growth.

Defense Industries' offerings include body armor, bomb disposal suits and bullet-resistant vests and jackets; ballistic wall covers, ceramic armor plates and lightweight armor UHMW-PE plates; personal military equipment, battle pouch units and combat harness units; dry storage units, liquid logistics, tents and vehicle covers; winter suits, sleeping bags and backpacks. The Company's manufacturing facilities have been built to American EQNET and international ISO 9001 standards. Defense Industries' has three principal subsidiaries; Export Erez Ltd. & Achidatex Nazareth Elite Ltd. in Israel and Owen Mills here in the States. For additional information, please visit the Company's web site at www.defense-industries.com.


4. ALLN-OTCBB-Allin Corp.

This is an outstanding company that we have been trying to bring on as a client due to the tremendous value of their product and service offerings: A leading provider of solutions-oriented application development and technology infrastructure consulting and systems integration services, Allin specializes in Microsoft-based technologies. Indeed, the Company has established a strong business relationship with Microsoft, one of the world's largest corporations. At the 2007 Microsoft Worldwide Partner Conference, Allin was given a Partner of the Year award for superior technology and innovation with Microsoft Search technologies. Allin had previously been recognized as Partner of the Year by Microsoft's West and East Regions.

The Company's operations are focused on four primary practice areas: Technology Infrastructure, Collaborative Solutions, Business Process and Interactive Media. Allin's expertise in these areas is second to none. Moreover, through its unique project delivery mechanism, the Company ensures that all of its top notch solutions are delivered on time and on budget. Allin is growing well but, as its stock is still illiquid, we always use limit orders when trading. The Company delivers its services through the trade names Allin Consulting, Allin Interactive and the CodeLab Technology Group. The Company maintains offices in Pittsburgh, Pennsylvania; Ft. Lauderdale, Florida; Wakefield, Massachusetts; and San Jose and Walnut Creek, California. For additional information about Allin, visit the Company's sites at http://www.allin.com and http://www.codelabtech.com/.





EMC is not a registered investment advisor or registered securities broker dealer and no information contained within the Corporate Information should be construed as investment advice or as a solicitation to offer, purchase or sell the Securities. The Securities may be thinly traded and not listed on any national securities exchange and involve an extremely high degree of risk. Because the Securities are penny stocks, they are subject to the Securities and Exchange Commission's penny stock rules, and as such, any investment in the Securities involves a high degree of risk and it may be difficult for any investor or Shareholder to resell the Securities. An investment in the Securities could result in the loss of some or all of an investment.

Recipients should (with the assistance of their legal and financial advisors) review Securities and Exchange Commission ("SEC") filings regarding the Profiled Companies that are SEC reporting issuers. These SEC filings are available for review at www.sec.gov. Recipients should review investment guides that are available at the same SEC website and the National Association of Security Dealers website at www.nasd.com.

Statements contained in the Corporate Information that are not historical facts are forward looking statements that involve risks and uncertainties and may be identified by the use of terminology such as "believes", "expects", "may", "will", or "should", or "anticipates". Such statements should be read as being applicable to all related forward looking statements wherever they appear in any of the Corporate Information. The actual results of a Profiled Company's operations, financial condition or other aspects of its business could differ materially from those discussed in the Corporate Information.