Link Building after Penguin 3.0

[ksmith29]

Google had said previously that these Panda and Penguin updates will be helping out the small sites. But now i see that their saying totally disagrees with what they are doing. A small European site if mine have been totally removed from the SERP's & the most important part that I have to mention is that it do not contain any kind of tricky links in its profile. Then why so? It may have little amount of backlinks (27 only) but that does not mean it can't indexed.