Small-cap stocks dipped slightly into negative territory Thursday, dropping slightly lower than the major indices.

Green Bankshares ( GRNB) shares sank 33% after the Greeneville, Tenn.-based bank announced lowered fourth-quarter 2007 guidance and withdrew its full-year 2008 view. Citing "deteriorating market conditions," Green Bankshares will increase its loan-loss provisions and now expects earnings between 28 cents and 33 cents a share, vs. 52 cents a share a year ago. Analysts predict EPS of 32 cents. Shares fell $8.70, to $17.58.

Meanwhile, digital imager Presstek ( PRST) announced new developments in its delayed third-quarter 2007 regulatory filing today. Citing a review of worldwide inventory, the Hudson, N.H., firm declared that GAAP operating income would be negatively impacted. Presstek also mentioned that the Securities and Exchange Commission is conducting an informal inquiry into its announcement of preliminary third-quarter results. Investors sold the stock down 14% to $4.88 on the news.

Leading the winners, shares of Pier 1 Imports ( PIR) sailed up 38% to $5.87 after the Fort Worth, Texas, furniture retailer beat expectations with a narrowed third-quarter loss. The company posted a continuing-operations loss of $10 million, or 11 cents a share, vs. a net loss of $72.7 million, or 83 cents a share, a year ago. Analysts surveyed by Thomson financial were expecting a loss of 24 cents a share. Gains were solidified as Morgan Keegan upgraded Pier 1 to market perform from underperform.

Local.com ( LOCM) was also gaining 5.2% to $5.34. The Irvine, Calif.-based paid-search Internet concern signed a deal with CitySearch, a segment of IAC ( IACI). Citysearch will now use Local.com to increase its advertiser reach. Terms of the deal weren't disclosed.

Finally, Smart Modular Tech ( SMOD) jumped 17% to $9.89 after reporting first-quarter 2008 earnings after Wednesday's close. The Fremont, Calif.-based maker of DRAM memory modules recorded income of $11.5 million, or 18 cents a share, compared with $15 million, or 23 cents a share, in the year-ago quarter. The Street was expecting EPS of 17 cents. This morning, Needham & Co. bolstered investor confidence by upgrading Smart Modular to buy from hold.

More broadly, the Russell 2000 lost 0.4% to 753.13 and the S&P SmallCap 600 dropped 0.2% to 388.87.

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