Stock Upgrades, Downgrades From TheStreet.com Ratings
Securities brokerage and investment bank Paulson Capital (PLCC) has been upgraded to a hold from a sell. Its revenue swung to a profit of $9.7 million in the first quarter of 2007 compared with a loss of $958,000 in the same period last year, and its debt-to-equity ratio of 0.00 implies very successful management of debt levels. The firm's gross profit margin of 46.7% is high, though it declined significantly from the same period a year ago. Despite the mixed results of the gross profit margin, its net profit margin of 28.6% significantly outperformed against the industry. Paulson Capital had been rated a sell since December 2006.
Paragon Technologies (PTG) provides systems, technologies, products and services for material flow applications. It has been downgraded to a sell from a hold. The company posted a net loss of $270,000 in the first quarter of 2007 after breaking even in the year-earlier period. Paragon's gross profit margin decreased during the same period to 26.5%, and its net profit margin of -7.4% is significantly below that of the industry average. The company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. Paragon's stock price has declined 26.8% over the past year, and based on its current price in relation to its earnings, is still more expensive than most of the other companies in its industry. The stock had been rated a hold since May 2007.
TheStreet.com Ratings has initiated coverage of professional liability insurance provider Darwin Professional Underwriters (DR) with a sell rating. The company's weaknesses are apparent in several areas, including its premium valuation and poor profit margins. Although Darwin's return on equity increased to 8.2% in the first quarter of 2007, it is still below that of both the industry and the S&P 500.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV