TheStreet.com Ratings: Stock Upgrades and Downgrades

Each weekday, TheStreet.com Ratings updates its ratings on the stocks we cover. Our model projects a stock's total return potential over a 12-month period, including both price appreciation and dividends. Our buy, hold and sell ratings designate how we expect these stocks to perform against a general benchmark of the equities market and interest rates.

While our model is quantitative, it utilizes both subjective and objective elements. For instance, subjective elements include expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings. Objective elements include volatility of past operating revenue, financial strength and company cash flows.

Starting today, we are highlighting some recent ratings changes.

Symbion(SMBI Quote), which owns and operates surgery centers throughout the U.S., has been upgraded to buy from hold. TheStreet.com Ratings feels that the company's strong revenue growth and largely solid financial position outweigh the lackluster performance of its stock. Symbion's revenue growth didn't trickle down to the bottom line in the fourth quarter of 2006, when EPS fell by 19%. However, we feel the company is poised for EPS growth in the coming year. Symbion had been rated a hold since September 2006.

Long-term care provider Kindred Healthcare(KND Quote) has been upgraded to buy from hold. The company's strengths include its solid stock price performance, revenue growth, largely solid financial position and attractive valuation. TheStreet.com Ratings feels that these strengths outweigh the fact that revenue growth hasn't trickled down to the bottom line. Kindred's EPS growth declined in the fourth quarter of 2006. The company had been rated a hold since November 2006.

Sonic Automotive(SAH Quote), a company that owns auto dealerships and collision repair centers in 15 U.S. states, has been upgraded to buy from hold. The company's strengths include its solid stock price performance and increase in net income. TheStreet.com Ratings feels that these factors outweigh the company's generally poor debt management. Sonic had been rated a hold since April 2006.

Medical device manufacturer Sonosite(SONO Quote) now gets a buy rating, up from a hold. Sonosite's revenue is growing and margins are expanding, resulting in continual increases in earnings per share, and its financial position is largely solid. TheStreet.com Ratings feels these factors outweigh the fact that the performance of the company's stock price has been lackluster. The company had been rated a hold since April 2006.

Oil and gas driller Stone Energy(SGY Quote) has been downgraded to a sell from a hold. The company's weaknesses include its deteriorating net income, generally weak debt management, disappointing return on equity and the generally disappointing historical performance, and its EPS swung to a loss in the fourth quarter. Stone Energy had been rated a hold since August 2006.

Additional ratings changes are listed below.

TheStreet.com Ratings Stock Upgrades, Downgrades
Company Name	Ticker	Change	New Rating	Former Rating
Claude Resources	CGR	Downgrade	Hold	Buy
Symbion	SMBI	Upgrade	Buy	Hold
Kindred Healthcare	KND	Upgrade	Buy	Hold
Sonic Automotive	SAH	Upgrade	Buy	Hold
Sonosite	SONO	Upgrade	Buy	Hold
Stone Energy	SGY	Downgrade	Sell	Hold
Quanta Services	PWR	Upgrade	Buy	Hold
Encision	ECI	Upgrade	Hold	Sell
Eroomsystems Technologies	ERMS	Upgrade	Hold	Sell
Dixie Group	DXYN	Upgrade	Buy	Hold
APAC Customer Services	APAC	Downgrade	Sell	Hold
Interpharm Holdings	IPA	Downgrade	Sell	Hold
Altantic American	AAME	Upgrade	Buy	Hold