Monday's Small-Cap Winners & Losers

Small-cap stocks kicked off the week lower along with the broader market. The Russell 2000 lost 0.3% to 686.29, and the S&P SmallCap 600 slumped 0.3% to 362.76.

Orlando, Fla., airline AirTran (AAI) shares ascended 19% to $4.91. Raymond James upgraded the stock to outperform from market perform. The stock had fallen substantially Friday on news that sector buddy Frontier Airlines (FRNT) was filing for bankruptcy.

Clayton Holdings (CLAY), a provider of outsourced services, analytics and consulting services for buyers and sellers of mortgage-related loans and securities, climbed 19% to $5.74. An affiliate of Greenfield Partners, a private equity firm, announced that it would buy the Shelton, Conn., company for $134 million, or $6 a share, plus repayment of $23.8 million in debt.

Ocwen Financial (OCN) shares added 10% to $4.08 on a Piper Jaffray analyst's prediction that the West Palm Beach, Fla., company would produce "respectable" results for its loan-servicing business. The analyst forecast first-quarter earnings of 15 cents and reaffirmed his buy rating on the stock.

On the losing side, video rental Blockbuster (BBI) shares fell 11% to $2.78 after offering to buy troubled electronics retailer Circuit City (CC) for more than $1 billion. The offer represents a 54% premium over the stock's Friday closing price. Shares of Circuit City climbed 28% to $5.

Finally, shares of Los Angeles apparel designer and retailer American Apparel (APP) lost 11.5% to $7.35 on a Wall Street Journal column detailing problems in the company, including problematic accounting practices, lawsuits and substantial debt.

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