This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

TheStreet.com Ratings: Stock Upgrades, Downgrades

Each weekday, TheStreet.com Ratings updates its ratings on the stocks it covers. The proprietary ratings model projects a stock's total return potential over a 12-month period including both price appreciation and dividends. Buy, hold or sell ratings designate how the Ratings group expects these stocks to perform against a general benchmark of the equities market and interest rates.

While the ratings model is quantitative, it uses 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.

TheStreet.com has initiated coverage of Brazilian air carrier Tam S.A. (TAM - Get Report) with a hold rating. Revenues, net income and earnings per share all increased in the fourth quarter of fiscal 2006 compared with the same quarter a year earlier. However, the market is expecting a contraction in the company's earnings in the coming year. Like all airlines, Tam will need to overcome persistently high fuel costs and intense competition to continue to succeed.

Hotel and resort company Four Seasons (FS) has been upgraded to a buy from a hold. The company's revenues grew 19.3% in the fourth quarter of fiscal 2006 compared with the same quarter a year earlier, outpacing the industry average of 11.9% during that same time period. This revenue growth appears to have trickled down to the bottom line. Four Seasons was able to earn 44 cents per share in the most recent quarter, after losing $1.03 during that same quarter in fiscal 2005. FS had been rated a hold since April 2005.

Semiconductor equipment manufacturer ASM International (ASMI - Get Report) has been upgraded to a buy from a hold. The company earned 56 cents per share in the fourth quarter of fiscal 2006, after losing 61 cents per share during the same quarter a year ago. TheStreet.com Ratings feels this earnings growth was the key to a 17.2% rise in the company's stock price over the past 12 months. ASM's return on equity has now risen to the point where it exceeds the industry average. The stock had been rated a hold since February 2006.

Women's apparel retailer Cache (CACH) has been downgraded to a hold from a buy. The company's net income and earnings per share both fell around 40% in the fourth quarter of fiscal 2006 compared with the same quarter a year earlier. Return on equity has also declined during that same period, which TheStreet.com Ratings feels is a sign of weakness within the company. Cache had been rated a buy since April 2005.

TheStreet.com Ratings has initiated coverage of information technology provider NCI (NCIT - Get Report) with a hold rating. The company's revenues grew 36.3% in the fourth quarter of fiscal 2006 compared with the same quarter a year ago. NCI also has a debt-to-equity ratio of just 0.01 and enough cash and other noninventory assets to cover short-term liquidity needs. However, net income, profit margins and earnings per share have all been deteriorating over the past fiscal year.

Additional ratings changes are listed in the table below.

TheStreet.com Ratings Stock Upgrades, Downgrades
Company Name Ticker Change New Rating Old Rating
NCI NCIT Initiation Hold n/a
TAM SA TAM Initiation Hold n/a
Rand Logistics RLOG Initiation Hold n/a
Harvest Energy Trust HTE Downgrade Sell Hold
Four Seasons Hotels FS Upgrade Buy Hold
ASM International ASMI Upgrade Buy Hold
Cache CACH Downgrade Hold Buy
Canterbury Park ECP Upgrade Buy Hold
Source: TheStreet.com Ratings

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
TAM $26.00 0.00%
CACH $0.02 -19.49%
ASMI $49.19 0.00%
NCIT $10.61 0.00%
AAPL $130.28 0.00%

Markets

DOW 18,010.68 -115.44 -0.64%
S&P 500 2,107.39 -13.40 -0.63%
NASDAQ 5,070.0260 -27.95 -0.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs