Stock Upgrades, Downgrades from TheStreet.com Ratings

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 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 company earnings forecasts. Objective elements include volatility of past operating revenue, financial strength and company cash flows.

Broadcasting conglomerate CBS(CBS.A) has been upgraded to a hold from a sell. The factors impacting its rating are mixed -- some indicating strength, some showing weakness. While its stock price has jumped by 31.47% over the past year, TheStreet.com Ratings does not recommend additional investment.

Revenue increased by 2.3% in the first quarter of fiscal 2007 compared with the year-earlier period, trailing the industry average of 33.7%. Net income decreased by 5.9% over the same period. The company's 0.34 debt-to-equity ratio is low but still higher than the industry average. CBS had been rated a sell since March 2007.

TheStreet.com Ratings has initiated coverage of Golfsmith International Holdings(GOLF), a specialty retailer of golf and tennis equipment, with a sell rating. The company's net loss widened to $4.91 million in the first quarter of 2007 from $870,000 a year earlier.

On a per-share basis, losses widened to 31 cents from 9 cents. Golfsmith's return on equity also deteriorated over that period. However, the company's debt-to-equity ratio of 0.46 is below the industry average, implying successful management of debt levels.