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Could these 4 micro-cap stocks vault your portfolio into the millions?

They may be tiny at this stage, but these four small companies have the potential to generate outsized returns and turn into tenbaggers.

They also have the potential to fall by the wayside, have yet to generate much in the way of profits and could be considered very high risk. Another potential problem is that shares are illiquid, meaning it would be hard to get out of the stock if disaster strikes, and could see investors lose up to 100% of their investment.

Here’s our brief view:

Redhill Education Ltd (ASX: RDH)

With a market cap of just $42m, Redhill is trading on a P/E ratio of 8.8x 2014 earnings, and has $6 million cash in the bank. At this stage, the company doesn’t pay a dividend, but that may not be far off. Each year, Redhill says it educates around 6,000 students from more than 30 countries including Australia. Interestingly Pie Funds Management, a quality fund manager, owns a 12.7% stake in Redhill.

Newzulu Ltd (ASX: NWZ)

This company has an interesting model. It is founded on 150,000 citizen journalists in more than 150 countries, reporting news as it happens – and eyewitness verification of news stories in partnership with global news agencies. Newzulu’s crowdsourced news platform could revolutionise the traditional media industry, with the company aiming to become cashflow positive within two years.

Reverse Corp Limited (ASX: REF)

Reverse Corp operates the 1800 Reverse calling number, which allows Australian mobile phone users to call someone without using their own credit – handy for those times when your prepaid phone is out of credit. The company has also diversified into an online contact lens store Pie Funds recently bought into Reverse at a price of ~7 cents a share and hold around 10% of the company – not hard when the company’s market cap is just $11.2m.

Bulletproof Group Ltd (ASX: BPF)

Even smaller than the three above, with a market cap of just $5.6m, Bulletproof is an IT company delivering cloud solutions to some very large customers, including Aldi and Universal Music Australia. The company says more than $1.5 billion of revenues are transacted through the platforms it supports each year. Having only listed in January 2014, Bulletproof is yet to record a profit, but is trading at 0.3x revenues, a discounted price compared to its larger peers.

If you want to know how to make a million dollars or more in the market, you might want to keep reading…

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Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga