Top Five Small-Cap Stocks

Our buy rating, in place since February 2006, is based on positive investment measures such as the company's strong revenue growth, solid financial position and stock performance, and its growth in net income. Revenue rose by 23.1% year over year in the second quarter of fiscal 2008, and this growth appears to have helped boost earnings per share to 32 cents from 20 cents a year ago.

CAM Commerce has no debt to speak of, giving it a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Net income increased by 60.0% when compared to the same quarter one year prior, rising from $0.85 million to $1.37 million. The company declared a quarterly cash dividend of 31 cents per outstanding share to be paid on July 14, 2008, continuing its "earnings based" dividend plan that aims to pay out 75% or more of net profit each quarter.

Powered by its strong earnings growth of 60.00% during the second quarter, the price of this stock has risen 31.21% over the past year. We believe CAM Commerce's stock should continue to benefit from this trend and move even higher. Bear in mind, however, that even the most promising stocks are subject to broad market declines.

Air Methods AIRM is an air ambulance service, providing air medical emergency transport services and systems throughout the United States. The company has two separate operating models: the Community-Based Model, or independent provider operations, with aircraft that are typically based at fire stations or airports, and the Hospital-Based Model, in which the company provides hospital clients with medically equipped helicopters and airplanes that are generally based at hospitals and staffed by hospital medical personnel.

In addition, the company's technical services group performs non-destructive component testing, engine repair, and component overhaul, while its products division designs, manufactures and installs aircraft medical interiors and other aerospace or medical transport products. Air Methods transports more than 84,000 patients annually using a fleet of more than 340 helicopters and fixed-wing aircraft. The company is headquartered in Englewood, Colo.