TheStreet.com Ratings: Stock Upgrades, 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 or 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.

Some recent rating changes are highlighted below.

Real estate investment trust Newcastle(NCT Quote) has been downgraded to a sell from a hold. TheStreet.com Ratings feels the company has generally poor debt management and weak operating cash flow. Newcastle had been rated a hold since October 2005.

Kansas-based electric utility Great Plains Energy(GXP Quote) has been downgraded to a hold from a buy. GXP's revenues have grown at a paltry rate compared with those of its competitors. Revenues went up just 1.6% in the fourth quarter of fiscal 2006 compared with the same quarter a year ago. The average rate of revenue growth for the entire industry during that same time period was over 25%. Great Plains had been rated a buy since August 2006.

Biotech firm Biogen(BIIB Quote) has been downgraded to a hold from a buy. The company has developed drugs for the treatment of non-Hodgkin's lymphoma, multiple sclerosis and rheumatoid arthritis. The company has demonstrated earnings-per-share growth over the past two years, but that hasn't pushed up the price of the stock. The stock price has actually fallen 7.7% over the past year. TheStreet.com Ratings doesn't see anything in the company's numbers that would change the trend. Biogen had been rated a buy since November 2006.

Market research company Harris Interactive(HPOL Quote) has been upgraded to a buy from a hold. Earnings per share shot up 50% in the second quarter of fiscal 2007 compared with the same quarter a year ago. TheStreet.com Ratings expects more EPS growth in the future. Harris had been rated a hold since November 2006.

Business software and technology provider CMGI(CMGI Quote) has been upgraded to a buy from a hold. Net income went up a whopping 668% in the second quarter of fiscal 2007, translating into an 800% increase in earnings per share. Such stellar numbers have already pushed the stock price up; however, TheStreet.com Ratings feels there is still room to run. CMGI had been rated a hold since November 2005.

Additional ratings changes are listed in the table below.

TheStreet.com Ratings Stock Upgrades, Downgrades
Company Name	Ticker	Change	New Rating	Former Rating
Whittier Energy	WHIT	Upgrade	Buy	Hold
Acorda Therapeutics	ACOR	Initiation	Sell	n/a
EpiCept	EPCT	Initiation	Sell	n/a
AmComp	AMCP	Initiation	Sell
Magellan Midstream	MGG	Initiation	Sell
Rio Narcea Gold Mines	RNO	Downgrade	Hold	Buy
Levitt	LEV	Downgrade	Sell	Hold
Newcastle Investment	NCT	Downgrade	Sell	Hold
Citizens First	CTZN	Upgrade	Buy	Hold
Rex Stores	RSC	Downgrade	Hold	Buy
Great Plains Energy	GXP	Downgrade	Hold	Buy
Keane	KEA	Upgrade	Buy	Hold
Biogen Idec	BIIB	Downgrade	Hold	Buy
Harris Interactive	HPOL	Upgrade	Buy	Hold
AEP Industries	AEPI	Upgrade	Buy	Hold
Cimatron	CIMT	Upgrade	Hold	Sell
Clean Diesel Technologies	CDTI	Upgrade	Hold	Sell
CMGI	CMGI	Upgrade	Buy	Hold
Corus Bankshares	CORS	Downgrade	Hold	Buy
Source: TheStreet.com Ratings