Stock Upgrades, Downgrades From TheStreet.com Ratings

Oplink Communications(OPLK Quote), which makes networking components, has been downgraded to hold. The company has seen a generally disappointing performance in the stock itself and poor profit margins. The company's gross profit margin is currently lower than what is desirable, coming in at 30.10%.

It has decreased from the same quarter the previous year. Looking ahead, TheStreet.com Ratings does not see anything in this company's numbers that would change the one-year trend. It was down over the past 12 months, and it could be down further in the next 12. It had been rated buy since October 2006.

Communications Systems(JCS Quote) makes connectors and wiring systems for telecommunications networks. It has been downgraded to hold. The company has seen deteriorating net income, disappointing return on equity and feeble growth in earnings per share.

Communications Systems underperformed when compared the industry average of 13.8%. Revenues slightly dropped by 6.8% since the same quarter a year ago. The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the communications equipment industry.

The net income decreased by 31.4% from the same quarter one year ago. The company's current return on equity has slightly decreased from the same quarter one year prior, implying a minor weakness in the organization. It had been rated buy since June 2005.

China Natural Resources(CHNR Quote) engages in mining zinc, iron and other minerals. It has been upgraded to hold. The company has a largely solid financial position with reasonable debt levels by most measures, notable return on equity and robust revenue growth.

Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 2.74 is very high and demonstrates very strong liquidity. China Natural Resources reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive EPS growth over the past two years. It had been rated sell since June 2005.

Westaff(WSTF Quote) is a temporary staffing services company. It has been downgraded to hold. The company has had feeble growth in earnings per share, deteriorating net income and disappointing return on equity.

Westaff, with its decline in revenue, underperformed compared with the industry average of 8.4%. Revenue dropped by 6.3% from a year ago. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share. It had been rated buy since May 2006.

Some recent rating changes are highlighted below.

TheStreet.com Ratings Stock Upgrades, Downgrades
Company Name	Ticker	Change	New Rating	Former Rating
Channell Commercial	CHNL	Upgrade	Hold	Sell
China Natural Resources	CHNR	Upgrade	Hold	Sell
Communications Systems	JCS	Downgrade	Hold	Buy
Oplink Communications	OPLK	Downgrade	Hold	Buy
Singing Machine	SMD	Upgrade	Hold	Sell
Video Display	VIDE	Upgrade	Hold	Sell
Westaff	WSTF	Downgrade	Hold	Buy
Xyratex	XRTX	Downgrade	Hold	Buy
Horizon Lines	HRZ	Upgrade	Hold	Sell
Source: TheStreet.com Ratings