BOSTON ( TheStreet) -- Small-cap stocks, measured by the Russell 2000 Index, were hit hard in May and trailed the broader market as investors sought the safety of large-cap shares such as Procter & Gamble ( PG) and Colgate-Palmolive ( CL).The underperformance of small-cap stocks is worrisome, given they inherently carry higher risks than their larger peers do. One of those is the inability to remain compliant with listing standards of the Nasdaq, spurring delisting warnings from the exchange.
First Federal Bancshares of Arkansas ( FFBHD) Company Profile: First Federal Bancshares of Arkansas is a savings and loan holding company, which through its subsidiary, First Federal Bank, provides a line of financial products to individuals and small- to medium-sized businesses. Current Share Price: $9.65 (as of last Friday, May 27) Listing Violation: Public float. The listing rule requires that a company have at least 750,000 publicly held shares for continued listing. Currently, First Federal Bancshares of Arkansas has a public float of about 376,000 shares. Received Nasdaq Notice: May 4 Management's Expected Action: The company said it expected to get a warning letter from the Nasdaq after it completed a reverse stock split, which reduced the number of shares outstanding. First Federal Bancshares of Arkansas has until June 20, to submit a plan to regain compliance. If the plan is accepted, the company would have until Oct. 31 to regain compliance with the rule. The company said that it already plans to issue up to 2.9 million shares of its common stock through a rights offering before June 20.