Stock Upgrades, Downgrades from TheStreet.com Ratings

Netflix has shown a pattern of positive EPS growth over the past two years, but TheStreet.com Ratings anticipates underperformance relative to this pattern in the coming year. However, the company's stock has declined 16.3% from its price level last year, and even though it is selling for less than others in its industry in relation to its current earnings, that is not reason enough to justify a buy rating at this time. Netflix had been rated a buy since October 2005.

Macquarie Infrastructure(MIC Quote - Cramer on MIC - Stock Picks), which offers a diversified group of infrastructure businesses, including airport services and parking, and district energy operations, has been downgraded to a hold from a buy. The company's revenues grew by 96% in the first quarter of 2007, compared with the same period last year, though that did not seem to trickle down to the company's earnings, as EPS declined by 25% in the same period.

TheStreet.com Ratings expects earnings to continue to decline in the coming year. Despite volatile earnings, Macquarie's stock price has increased by 44.5% in the past 12 months, but the hold rating indicates that no further investment is recommended at this time. The company had been rated a buy since June 2007.

Community and retail bank company United Bankshares(UBSI Quote - Cramer on UBSI - Stock Picks) has been downgraded to a hold from a buy. Its revenue growth of 2.2% in the second quarter of 2007, compared with the same period last year, trailed the industry-wide average of 27.1%. The company's gross profit margin is high at 57.7%, but it decreased from the same quarter last year, and net income decreased from $25.5 million in the second quarter of 2006 to $24.5 million in the same period this year.

United Bankshares' stock price has declined 20.8% in the last 12 months, and there is nothing in the company's numbers that would change the one-year trend. The company had been rated a buy since August 2005.

Investment bank Piper Jaffray(PJC Quote - Cramer on PJC - Stock Picks) has also been downgraded to a hold from a buy. Net income increased from $4.1 million in the second quarter of 2006 to $9.3 million in the same period this year. The company has shown a two-year pattern of positive EPS growth and improved by 45% in the second quarter of 2007, compared with the same period last year.

However, TheStreet.com Ratings anticipates underperformance relative to this pattern in the coming year. Its stock price has underperformed the S&P 500 -- declining 5.9% from its price level of one year ago. Looking ahead, there is nothing in its numbers that suggests that this trend will change in the coming year. Piper Jaffray had been rated a buy since January 2007.

Additional ratings changes are listed below.

Company Name	Ticker	Change	New Rating	Former Rating
AUTOBYTEL INC	ABTL	Downgrade	Sell	Hold
ADVANCE AMER CASH ADVANCE CT	AEA	Downgrade	Hold	Buy
AVATAR HOLDINGS INC	AVTR	Downgrade	Hold	Buy
CRM HOLDINGS LTD	CRMH	Downgrade	Sell	Hold
CITI TRENDS INC	CTRN	Downgrade	Sell	Hold
GIGA-TRONICS INC	GIGA	Upgrade	Hold	Sell
MACQUARIE INFRASTRUCT CO LLC	MIC	Downgrade	Hold	Buy
MERITAGE HOMES CORP	MTH	Downgrade	Sell	Hold
NETFLIX INC	NFLX	Downgrade	Hold	Buy
PIPER JAFFRAY COS INC	PJC	Downgrade	Hold	Buy
TREX CO INC	TWP	Downgrade	Sell	Hold
UNITED BANKSHARES INC/WV	UBSI	Downgrade	Hold	Buy
MRU HOLDINGS INC	UNCL	Downgrade	Sell	Hold

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