All things considered, Carolinas stocks performed quite well in 2001, a year that will go down in history as one most companies would just as soon forget.

Despite a 13 percent decline in the Standard & Poor's 500, 52 of the 86 Carolinas stocks appreciated and 44 of those rose by at least 10 percent in value. Only 33 of the region's stocks declined, including 21 that declined by 10 percent or more.

Last year's top-performing Carolinas stocks were two innovators that are changing the way Americans buy cars and borrow money - Sonic Automotive Inc. and Lending Tree Inc. Their performance was surprising given sagging consumer confidence in the wake of rising unemployment and a slowing economy.

The biggest loser was Burlington Industries Inc., which sought the protection of U.S. bankruptcy court in November amid the onslaught of cheaper foreign competition now plaguing much of the apparel and textile sector.

Sonic Automotive, the No. 2 auto dealer in the nation with about 165 used and new car dealerships, landed the top spot by more than tripling in value. Selling cars is nothing new, but doing it through a publicly trade company is. In 1994, there were no publicly traded national automobile dealers. Today there are five, and all have performed well as investors got used to the idea.

"Investors are beginning to get a better understanding of our model," said Scott Smith, chief operating officer for Sonic. "Now that they have seen us go through tough economic times and seen how well we have performed, it has given them a lot more confidence in the model."

Smith is confident Sonic can sustain the gains because it is still trading at about 14 times earnings, well below the longtime average of 17 for all U.S. stocks.

Another new business model that seemed to gain credibility last year was the online business exchange. Lending Tree was the Carolinas' second best performing stock, nearly tripling to $6. The company nearly doubled revenues from brokering loans between consumers and lenders on its Web site and cut its losses five fold to $3 million in the third quarter ended Sept. 30. The stock is still nowhere near its $12 IPO price of two years ago, but its rebound shows that dot-coms still have life in them.

"The strength in our model is we do not extend credit," said company spokeswoman Deborah Roth. "When rates rise, consumers are encouraged to look for the best deals available. When rates drop, people are looking for more competitive loan offers."

The region's large-cap stocks also fared well, thanks in large part to 11 straight interest rate cuts, which spurred loan demand and drove up fee income at Charlotte-based banks.

Lowe's Cos. Inc. and Duke Energy Corp. both executed two-for-one stock splits, although Duke ended the year down in the wake of growing skepticism over deregulation in the utility business.

Investors who purchased one share each of the five largest public companies in the Carolinas at the end of last year would have seen their investment grow by 23 percent. That augurs well for the Charlotte economy, where the companies employ thousands who have invested heavily in the stocks as part of their retirement plans. Three of the Carolinas' five companies with the largest market capitalizations are based in Charlotte.

Other top performers including N.C.-based retailers Family Dollar Stores Inc. and Lowe's, which rode consumers post-Sept. 11 emphasis on discount prices and home improvement to healthy sales in the fourth quarter.

Other stars included:

Blue Rhino Corp.: The Winston-Salem company is changing the way Americans buy propane for their barbecue grills. Rather than refill their tanks, more Americans are exchanging them at more than 27,000 Blue Rhino outlets nationwide. The company just raised its 2002 earnings estimates after a 25 percent rise in same-store sales.

Standard Commercial Corp.: Core earnings rose 160 percent in the quarter ended Sept. 30 at the Wilson company, which processes and sells tobacco leaves and wool. Strong growth from a new tobacco processing plant in Brazil more than made up for a loss at its much smaller wool operations.

Ryan's Family Steak Houses Inc.: Customers like a new concept that features cooks grilling entrees near diners' tables, said Fred Grant, senior vice president of finance for the Greer, S.C., company. Only 20 percent of the chain's 300-plus restaurants use the concept, but that number should double for 2002, helping fuel continued financial success.

Krispy Kreme Inc.: The pride and joy of North Carolina turned in another stellar year, opening stores throughout the Southeast. Investors responded by pushing up its stock price 113 percent in a year when the company had a pair of two-for-one stock splits.

Last year's losing stocks were more obvious. Three of the five worst-performing stocks in the region belonged to apparel or textile firms. Six of the 11 companies in the region trading below a dollar at year's end were either apparel or textile manufacturers. Many of last year's losers will struggle in 2002 to keep their stocks listed or their doors open.

Other poor-performing stocks included:

Burlington Industries Inc.: Once the world's largest textile company, Burlington filed for Chapter 11 bankruptcy protection Nov. 15, with $1.2 billion in assets and $1.1 billion in debts. The Greensboro company has become the poster child for the Carolinas' struggling apparel and textile industries, which are trying to fight off the cheaper goods of foreign competitors by cutting costs, closing plants and laying off workers.

Galey & Lord Inc.: The Greensboro textile maker, which lost 88 percent of its value during the year, was kicked off the New York Stock Exchange Christmas Eve and will resume trading on the over-the-counter market Jan. 7. "Everything you read about retail is true," said Leonard Ferro, chief accounting officer for Galey & Lord. "Retail is poor."

Information Architects Corp.: The Charlotte company is still struggling to find its niche in content management software for the Internet after its Y2K market dried up. It has proposed a five-for-one reverse stock split to save its NASDAQ listing, but was unable to get a quorum of shareholders to vote on the proposal at a special meeting two weeks ago. Shareholders are scheduled to vote again on the proposal Jan. 25.

Polymer Group Inc.: Polymer's stock sank further Monday after senior lenders declared it in default on a credit facility and blocked it from making any bond payments. The North Charleston, S.C., company has hired an investment bank to restructure and said Monday it is confident it can maintain its access to capital.