Today's Small-Cap Winners and Losers

Magna Entertainment(MECA) gained Friday on news that the company's deal to sell The Meadows, a racetrack in Washington County, Pa., has won conditional approval from the Pennsylvania State Harness Racing Commission.

The Canada-based horse track operator runs The Meadows through three wholly-owned subsidiaries: Washington Trotting Association, Mountain Laurel Racing, and MEC Pennsylvania Racing. PA Meadows is acquiring all of the outstanding shares of these three entities.

Approval of the sale of The Meadows by the commission is one of the closing conditions under a stock purchase agreement between Magna and PA Meadows. Under the agreement, Millennium-Oaktree will pay Magna $225 million, and Magna will continue to manage racing operations at The Meadows on behalf of Millennium-Oaktree for at least five years. Shares of Magna gained 30 cents, or 5%, to $6.30 in recent trading.

Hurray! Holding Co.(HRAY) dropped as the Beijing-based wireless music and data-services provider missed Wall Street's first-quarter earnings expectations. The company posted earnings of $922,000, or 4 cents a share, down from $5.6 million, or 31 cents a share, a year ago. Revenue totaled $16.6 million, up 11.4% from a year ago.

Analysts were looking for earnings of 15 cents a share on revenue of $16.6 million. Looking ahead, the company said it expects second-quarter revenue to be between $16.5 million and $17.5 million. "While we are satisfied with our revenue results, which are within our previous estimate," said QD Wang, Chairman and CEO in a statement, "we are disappointed with the weaker net income for the quarter due to continued weakness in our WAP business, slowdown in software business and increased costs and operating expenses." Shares fell $1.23, or 15.4%, to $6.76 in recent trading.

Cost Plus(CPWM) stumbled as the specialty retailer was downgraded by two firms. JMP Securities downgraded the company's stock to market underperform from market perform, while CL King & Associates lowered Cost Plus to accumulate from strong buy.