Updated from 2:03 p.m. EDT with new stock prices

Small-cap stocks outpaced the major indices on a strong move higher Monday as a rally in financials and bullish housing data spurred renewed confidence in the market.

Radio One ( ROIAK) gained 58.6% to $1.76. The Lanham, Md., radio broadcasting company announced it would sell KRBV, its Los Angeles station, to Bonneville International for about $137.5 million. Radio One also said its board had authorized a buyback for up to $150 million of stock through 2009.

Synplicity , a Sunnyvale, Calif.-based maker of software for the design and verification of semiconductors, rocketed up 47.6% to $7.85. On Thursday, Synplicity announced it was being acquired by Synopsys ( SNPS - Get Report) for $227 million, or $8 a share.

Newsprint and specialty paper maker AbitibiBowater jumped 38.8% to $13.56 on news that the Montreal company agreed to receive an investment of $350 million in convertible debentures from Fairfax Financial Holdings to address AbitibiBowater's upcoming debt maturities and general liquidity needs.

On the losing side, Media General ( MEG) shares fell 9.9% to $14.39. Thursday after the close, the Reston, Va.-based communications company offered February 2008 revenue results and first-quarter earnings guidance. For February, revenue decreased to $63.4 million from $71.2 million a year ago. The company forecast a continuing-operations loss of 40 cents to 45 cents a share for the first quarter. The Street is looking for a per-share loss of 13 cents.

Also losing, Aircastle ( AYR - Get Report), a Stamford, Conn., leaser of airplanes, lost 12.7%% to $13.37. The company announced this morning that it would cut its dividend to 25 cents a share this quarter from 70 cents last quarter.