Tuesday's Small-Cap Winners & Losers

Updated from 2:45 p.m. EST with new stock prices

Skipping back and forth along the baseline, small-cap stocks couldn't get much going Tuesday as earnings trouble brought down the day's biggest losers.

Shares of LECG (XPRT Quote - Cramer on XPRT - Stock Picks) hit new lows, falling by 34% to $8.13, after shaving its fourth-quarter earnings forecast. Excluding charges, the Emeryville, Calif.-based provider of economic and financial analysis now expects revenue in the range of $87 million to $89 million, resulting in earnings of 13 cents to 14 cents a share, down from previous guidance for EPS of 24 cents to 26 cents. Two analysts polled by Thomson Financial are expecting EPS of 25 cents.

Also falling was Kemet (KEM Quote - Cramer on KEM - Stock Picks). The Simpsonville, S.C.-based maker of integrated circuits dropped 9.7% to $5.15 after posting non-GAAP income of $5.5 million, or 7 cents a share, vs. $10.6 million, or 13 cents a share, a year ago. The Street had expected EPS of 14 cents.

One of the few big gainers, New York's Quadra Realty (QRR Quote - Cramer on QRR - Stock Picks) blasted off 33.7% to $10.64 on news that Hypo Real Estate Capital Corporation would buy 65% of Quandra's outstanding stock for about $10.65 a share. Quadra, a commercial real estate finance company, also announced it would pay a dividend of about 35 cents to shareholders on the date of expiration of the tender offer, resulting in an total value of $11 a share for investors. This price tag represents a 38% premium over the stock's close on Monday.

Shares of JetBlue (JBLU Quote - Cramer on JBLU - Stock Picks) took off 20.2% higher to $5.94 after posting a fourth-quarter loss that was narrower than the Street's forecast. The Forest Hills, N.J., airline announced earnings of $4 million, or 2 cents a share, vs. $17 million, or 10 cents a share, in 2006. Analysts polled by Thomson Financial were expecting a loss of 5 cents a share.

JetBlue's rosy numbers and lower oil prices help bring shares of Phoenix, Ariz.-based sector buddy Mesa Air (MESA Quote - Cramer on MESA - Stock Picks) up 2.9% to $3.25 along with other airlines.

Meanwhile, UBS handed out an upgrade to Arris (ARRS Quote - Cramer on ARRS - Stock Picks), raising its rating to buy from neutral. The Suwanee, Ga.-based communications technology company jumped 5.7% to $8.33.

More broadly, the Russell 2000 rose 0.4% at 705.44, and the S&P SmallCap 600 gained 0.7% to 369.96.