Strong results from many small to medium cap companies brings into question whether the extent of recent market weakness is warranted. Three smaller companies that produced excellent interim results were Adcorp Australia, Ambertech and VDM Group.

All of the companies' share prices imply a substantial discount to their industry peers and the market generally. Each is poised for a strong 2007-08 performance that reflects a low price-earnings ratio and the prospect of an above-average yield.