"We believe that the recent relative strength of tech stocks is the start of a longer term trend, not merely a flash in the pan," says Jim Oberweis and Dave Covas.

In The Oberweis Report, the money managers and small cap advisors explain, "Our confidence stems from the emergence of the next Killer Apps, which drive technology cycles because they change how we live our lives." Here, they make a case for technology and offer a trio of small cap favorites.

"During the 1980's and early 1990's, the personal computer was the Killer App. During the late 1990's, it was the Internet. During this decade – zilch. Until now. The next Killer Apps – video-on-demand and ubiquitous high-speed wireless connectivity – are coming.

I just finished speaking with Jim Oberweis, president of Oberweis Asset Management and the editor of investment newsletter The Oberweis Report. Oberweis, whose newsletter recommends specific high growth small cap stocks, is rated among the top two investment advisory letters for 20 year performance, according to Hulbert Financial Digest. He says while technology stocks have been among the worst performing stocks for the past eight or nine years, this year they are best performing stocks in the Russell 2000 Growth Index.

This could be the beginning of a long awaited rebound.

MOST NOTEWORTHY: Full House Resorts, Starent Networks and Capital Trust were today's noteworthy initiations:

• Morgan Joseph said Full House Resorts Inc.'s (AMEX: FLL) valuation does not reflect the present value of its tribal management contract with the FireKeepers Casino. Shares were initiated with a Buy rating and $3.50 target.
• Starent Networks Corporation (NASDAQ: STAR) was assumed with an Overweight rating at Thomas Weisel. The firm said STAR offers a compelling risk/reward profile given strong gross margins and expanding operating margins.
• Keefe Bruyette initiated Capital Trust Inc. (NYSE: CT) with a Market Perform rating and $30 target, and believes the expected deterioration of commercial real estate fundamentals is likely to remain a headwind for valuations of the shares.

OTHER INITIATIONS:

• Thomson Reuters Plc. (NASDAQ: TRIN) was started at UBS with a Neutral rating.
• Piper initiated Heritage-Crystal Clean Inc. (NASDAQ: HCCI) with a Buy rating and $20 target.
• Goldman Sachs initiated The Sherwin-Williams Company (NYSE: SHW) with a Neutral rating.