BOSTON ( TheStreet) -- Small-cap stocks are set to close out 2011 with big losses, but some companies trading under $5, such as TeamStaff ( TSTF) and Majesco Entertainment ( COOL), have more than tripled.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 14% since the end of April. Investors have become more risk-averse and have sought safety in dividend-paying, large-cap stocks, U.S. Treasury bonds and even cash.
10. Crescent Financial ( CRFN) Company Profile: Crescent Financial, the parent of Crescent State Bank, operates 15 full-service banking offices North Carolina with $916 million in total assets. Shares of Crescent Financial doubled in one day in late February after Piedmont Community Bank Holdings paid $75 million to acquire a 66% stake in Crescent. In November, after extending its tender offer for shares, Piedmont completed its investment in Crescent. Share Price: $4.45 (Dec. 2) 2011 Total Return: 98% Analyst Ratings: All three researchers following Crescent Financial recommend that investors hold onto shares, including research shop Raymond James. There are currently no price targets from analysts on Crescent shares. TheStreet Ratings has a "sell" rating on Crescent Financial, citing unimpressive growth in net income and poor profit margins.
8. Analysts International ( ANLY) Company Profile: Analysts International is an IT services staffing firm. Shares of Analysts International popped in late February after the company reassured investors by saying it expects to maintain profitability in fiscal 2011. Shares dipped in May after the company's chief financial officer resigned, shares climbed to a 52-week high in November on the back of the company's third-quarter financial results, which saw revenue up 11% from a year ago and net income up sharply to $1.8 million from only $600,000 in the third quarter of 2010. Share Price: $4.92 (Dec. 2) 2011 Total Return: 100% Analyst Ratings: Despite the name, no research analyst follows Analysts International. TheStreet Ratings has a "buy" rating on Analysts International after upgrading the stock in November. The company's low profit margins are counterbalanced by "its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures."
6. ParkerVision ( PRKR) Company Profile: ParkerVision develops RF technologies that have low power consumption for 2G, 3G and 4G wireless communications. Shares of ParkerVision surged in July after the company announced it is suing mobile chipmaker Qualcomm ( QCOM) for patent infringement. The complaint accuses Qualcomm of "objective recklessness in its infringing activity and seeks an award of exemplary damages, attorneys' fees, and costs in bringing this action." Share Price: $1 (Dec. 2) 2011 Total Return: 120% Analyst Ratings: No research analyst follows ParkerVision. TheStreet Ratings gives ParkerVision a "sell" based on "generally disappointing historical performance in the stock itself and poor profit margins."
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. 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. Share Price: $4.59 (Dec. 2) 2011 Total Return: 155% 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. Majesco Entertainment ( COOL) Company Profile: Majesco Entertainment makes video games mainly for the family-oriented, mass-market consumer. Majesco's run this year started in January when the company announced it had shipped more than 500,000 copies of its Zumba Fitness video game for the Wii, Xbox 360 and PlayStation 3. Later that month, the company announced it regained compliance with the Nasdaq's minimum bid price requirement for continued listing. In early March, shares of Majesco climbed higher after the company posted better-than-expected fiscal first-quarter financial results, with revenue jumping to $48.5 million from $29.2 million in the same period a year earlier. In June, Majesco upped its full-year revenue outlook as it expects to ship 17 new games this year across platforms like the Xbox Kinect, Facebook, Nintendo's 3DS and Apple's iPhone. Share Price: $3.10 (Dec. 2) 2011 Total Return: 303% Analyst Ratings: Majesco garners three "buy" ratings from Needham & Co., Northland Securities and Sidoti & Co. Majesco also receives a "neutral" rating from Wedbush. The average price target of $4.42 is 42% above current levels. TheStreet Ratings has a "buy" recommendation on Majesco Entertainment after upgrading the stock in October. While TheStreet Ratings says the company has some minor weaknesses, the report lauds the company's "robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and impressive record of earnings per share growth."