I think most of their small cap ratings are automated, coming from their stock screener. I've seen some of them that make no sense whatsoever, especially when they were calling BCRX a buy after it's primary drug was shot down by the FDA. Purely technical analysis and on that basis, VELT looks great.
In Velti's case the technical analysis is back up by real revenue and growth in a hyper growth sector of future. A market cap of $89M for a stock that is at worst going to bring $250M in revenue is asinine.