This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Talbots: Small-Cap Winners and Losers

NEW YORK (TheStreet) -- Small-cap stocks were participating in the market rally Tuesday, with the Russell 2000 Index up 0.6% in afternoon trading. Small-caps outperformed the market in 2010, as merger activity and faster profits drove stock prices higher.

Industrial plastic films producer Fuwei Films (FFHL) was the biggest gainer among small-caps on Tuesday, shooting up 28% to $4.15. The stock is up 66% over the past month. In September, the company settled a shareholder lawsuit that alleged promoters hyped the company's IPO in 2006 even as Chinese authorities were investigating three of its executives for illegally taking over control of the company.

The sharp appreciation in the stock in the last few months appears to have baffled even the company's management. In a press release on December 23, the company noted the stock's unusual price rise.

"We really appreciate our investors' continued interest and support of Fuwei Films," said Mr. Xiaoan He, CEO of Fuwei Films, "and while we are not currently aware of any information which we have failed to disclose, among the reasons that might have caused the recent rise in our market price other than the settlement of the class action litigation and the earnings release of the third quarter of 2010, we will continue to keep our investors informed."

IP services company Interactive Intelligence (ININ) was soaring 24% to $36.35 after it issued a fourth-quarter outlook that was higher than forecast. The company now expects an adjusted profit of 48 cents to 52 cents for the fourth quarter against a consensus estimate of 31 cents.

Small-cap energy stocks were seeing momentum with Evergreen Energy (EEE), Cred Petroleum (CRED), Sulphco (SUF) and Tri-Valley (TIV) among the big gainer on Tuesday's trading action.

Talbots (TLB) was the biggest loser in the small-cap space on Tuesday, dropping 17% to $6.30 after it issued a weak outlook for its fourth quarter results.

For the fourth quarter ending January 29, the retailer expects same-store sales to drop 6% and an adjusted loss of 15 to 19 cents, higher than an earlier forecast of a 5 cent loss to 3 cent profit.

Israel-based Click Software (CKSW) was another stock that plunged on a weak fourth-quarter outlook. The company said after the bell Monday that a higher head count and a write-off will hurt its fourth quarter profit and cut its quarterly sales view. The company's forecast for sales of about $18 million fell short of analysts' estimates of $20 million, according to Thomson Reuters. Shares were sinking 15% to $7.91.

Other small-caps that topped the loser's list Tuesday morning included Premier Exhibition (PRXI), Tuesday Morning (TUES), Brooklyn Federal Bancorp (BFSB) and ZBB Energy (ZBB) , with their stocks shedding between 14% and 17% of their value.

--Written by Shanthi Bharatwaj in New York



>To contact the writer of this article, click here: Shanthi Bharatwaj.

>To follow the writer on Twitter, go to http://twitter.com/shavenk.

>To submit a news tip, send an email to: tips@thestreet.com.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,943.81 +28.74 0.17%
S&P 500 1,967.57 +2.89 0.15%
NASDAQ 4,415.49 +19.2860 0.44%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs