STOCK PICKS: Top Five Small-Cap Stocks for Oct. 10

Management was pleased to be able to report that SY Bancorp's asset quality remained sound despite the difficult economic climate. However, the company's income from investment management and trust services has been hurt by the same factors. This portion of the company's business makes up the single largest component of its non-interest income. While SY Bancorp's stock is currently trading at a level that is relatively expensive compared to its peers, we feel that the strengths detailed above justify the higher price levels.

MWI Veterinary Supply(MWIV Quote) is a distributor of animal health products to veterinarians across the U.S. MWI has been rated a buy since April 2008 on the basis of its revenue growth, largely solid financial position, notable return on equity and other strengths.

For the third quarter of fiscal 2008, the company reported that its revenue rose 13.3% year over year. This growth appears to have trickled down to MWI's bottom line, helping boost EPS by 25.7% when compared with the same quarter last year. Net income also improved, rising 27.2% from $4.26 million in the third quarter of fiscal 2007 to $5.42 million in the most recent quarter. MWI has a debt-to-equity ratio of zero, implying that there has been very successful management of debt levels. In addition, a quick ratio of 1.01 indicates that the company is able to avoid short-term cash problems.

Management announced that it was pleased with a strong third quarter and that the acquisition of AAHA MarketLink was an important step in building the company's business. MWI updated its previous estimates for full-year fiscal 2008 and now anticipates revenue growth of approximately 17.0% year over year, along with diluted earnings per share of approximately $1.62.