One unappreciated diamond that Sullivan's senior equity analyst, Ed Moore, discovered in November 2008 was Stec (STEC), a solid-state disk-drive maker that the fund bought for $3.80 a share. The stock subsequently skyrocketed, reaching $40 by the end of August, endowing the company with a market capitalization around $2 billion. "The stock may have more legs, but it became too big for a micro cap and we have had to sell our position," Sullivan says.

unique product that is leading edge

Cornered solid state market.

Flash Memory is where it is at. It will be mainstream in corporate data centers - The IPOD of corporations.

SSD Manufacturer that is ahead of competition in tough market

The big winner for the fund this year has been Stec (STEC) a solid-state disk-drive maker that fits Stephens' category of a stock with an earnings catalyst. Its shares are up 322% this year. The company's drives, he says, are faster, lighter and more energy-efficient than rivals' vying for notebook computer sales. The stock now trades at 19 times this year's earnings and 14 times 2010 forecast. Crane expects earnings to increase 35% next year, to $1.08 a share, from 80 cents expected this year.

tech growth supplier

spr recc

small, govt & OEM contract

Makes solid state disk drives that were specified as a component of Apple's new MacBook Air. STEC is one of the very few companies with this technology, and stands to benefit from strong demand.

overbought

Big run? Straight down the toilet maybe..