BOSTON ( TheStreet) -- Small-cap stocks are mired in a bear market, but select companies trading under $5, such as TeamStaff ( TSTF) and Majesco Entertainment ( COOL), have more than doubled this year, easily surpassing gains by their large-cap rivals.After a two-year bull market that followed the 2008 financial crisis, small-caps have been brutalized. The Russell 2000 index, a measure of share performance for smaller companies, is down more than 20% since the end of April. Investors have become more risk-averse and have sought safety in dividend-paying, large-cap stocks and U.S. Treasury bonds.
10. Sify Technologies Ltd. ( SIFY) Company Profile: Based in India, Sify Technologies is an Internet service provider. Sify also provides e-commerce services to companies in India. Shares of Sify Technologies spiked higher in April to a high of $8.54 as a high-growth play for investors looking for exposure to India. The company this year has announced partnerships and plans for expansion, and the stock has rallied like fellow India Internet company Rediff.com ( REDF). Both Sify and Rediff.com have fallen steadily since the beginning of May along with the broader market. Current Share Price: $4.48 (Sept. 28) 2011 Total Return: 100.9% Analyst Ratings: No research analyst has coverage of Sify. TheStreet Ratings also does not have research on Sify.
8. Saratoga Resources ( SARA) Company Profile: Saratoga Resources is an independent exploration and production company, with acreage along the transitional coastline of Louisiana. Last year, Saratoga Resources emerged from bankruptcy protection with debt obligations restructured to reduce the interest burden on the company. The company was successful in preserving 100% of the interests of shareholders. It paid creditors 100 cents on the dollar and extended the maturity on then existing credit facilities to April 2012. The stock, which was added to the NYSE Amex in July, after Saratoga refinanced prior debt facilities, reduced total debt, raised over $35 million in new equity, and increased cash by 400%. Current Share Price: $4.60 (Sept. 28) 2011 Total Return: 104.4% Analyst Ratings: No research analyst has coverage of Saratoga Resources. TheStreet Ratings also does not follow the stock.
6. Authentidate Holding ( ADAT) Company Profile: Authentidate provides software applications and Web-based services for businesses. The surge in Authentidate's stock started in early April after the company completed the sale of its wholly owned subsidiary, Authentidate International AG, to Switzerland's Exceet Group AG. The transaction yielded net cash proceeds of $1.3 million. During the second half of April, the Department of Veterans Affairs, Ameri-Quipt and Superior Oxygen & Medical Equipment selected Authentidate's services. Current Share Price: 93 cents (Sept. 28) 2011 Total Return: 109% Analyst Ratings: Sidoti & Co. is the lone firm with research coverage on Authentidate, rating the stock "neutral" with no price target. TheStreet Ratings has a "sell" rating on the stock. The latest report on Authentidate says one of the most important negative areas for the company is the "overall disappointing return on equity."
4. Interphase ( INPH) Company Profile: Interphase is a telecom-equipment maker. The company provides services for LTE and WiMAX, interworking gateways, packet processing, network connectivity, and security for key applications for the communications and enterprise markets. Interphase shares more than doubled on Feb. 11, a day after the company reported fourth-quarter financial results. The company said revenue in the quarter jumped 24% to $5.8 million as it swung to a quarterly profit. The stock hit a high of $7.59 in March but has been steadily pulling back since. Current Share Price: $4.68 (Sept. 28) 2011 Total Return: 162.2% Analyst Ratings: There are no research firms covering Interphase currently. TheStreet Ratings has a "sell" rating on the stock, which it has maintained since downgrading the stock from "hold" in July 2009. The latest report says Interphase's primary weakness is "feeble growth in its earnings per share."
2. Acceler8 Technology ( AXK) Company Profile: Acceler8 Technology develops materials and instrumentation for applications in medical instrumentation, basic research, drug discovery and bio-detection. The stock surged in the absence of any headlines in January, prompting an inquiry from the NYSE for the unusual volume activity. Acceler8 shares again spiked in February after the company said an evaluation agreement with Novartis ( NVS) was extended to June 30. Novartis will pay the company a monthly fee for an exclusive-rights extension. Current Share Price: $3.05 (Sept. 28) 2011 Total Return: 203% Analyst Ratings: No Wall Street firm covers Acceler8 Technology. TheStreet Ratings has a "hold" rating on Acceler8's stock, arguing that the company's "robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity" are counterbalanced by the company's poor profit margins.