Monday's Small-Cap Winners & Losers

AirTran climbs on an upgrade.
By Mike Taylor ,

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) - Get Report

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) - Get Report

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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