Stock Upgrades, Downgrades from TheStreet.com Ratings

Rockwood Holdings(ROC Quote) develops, manufactures and markets specialty chemicals and advanced materials for industrial and commercial purposes worldwide. It has been downgraded to a hold from a buy.

The company's third-quarter revenue rose by 12.1% compared with the same period last year, which was in line with the industry average of 12.8%. Rockwood's net income increased 15.4% to $24.7 million, or 32 cents a share, over the same period. The company's return on equity has improved slightly when compared with the third quarter of last year, which can be construed as a modest strength in the organization.

However, its debt-to-equity ratio of 1.79 is high overall and when compared with the industry average, suggesting that its debt management needs to be re-evaluated. Along with the unfavorable debt-to-equity ratio, Rockwood maintains a quick ratio of 0.93, which illustrates the inability to avoid short-term cash problems. It had been rated a buy since August 2007.

Tech Data (TECD Quote) sells information technology and logistics management products worldwide. It has been downgraded to a hold from a sell. The company's third-quarter revenue rose by 9.1%, outpacing the industry average of 6.1%. Its debt-to-equity ratio of 0.22 is very low and beneath that of the industry average, implying that there has been very successful management of debt levels.

In addition, its quick ratio of 1.03 illustrates the ability to avoid short-term cash problems. Tech Data's earnings rose to 73 cents a share in the third quarter from 18 cents per share in the same period last year.

However, the company's weaknesses include poor profit margins and a stock price that has dropped by 11.46% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time. Tech Data had been rated a buy since Dec. 5, prior to which it had been rated a hold since May 2006.

VeriFone Holdings(PAY Quote) designs, markets and services electronic payment transmission systems between consumers, merchants and financial institutions. It has been downgraded to a sell from a hold.

The company's stock price has fallen by 53.01% in the last 12 months, and consistent with the plunge in the stock price, its third-quarter earnings fell 33.3% to 16 cents a share from 24 cents per share in the same period last year.

Although its share price is down sharply from a year ago, do not assume that it can be tagged as cheap and attractive. Based on its current price in relation to its earnings, VeriFone is still more expensive than most of the other companies in its industry. The company also demonstrates deteriorating net income and disappointing return on equity. VeriFone had been rated hold since January 2007.

Additional ratings changes are listed below.

Stock Upgrades, Downgrades
Company Name	Ticker	Change	New Rating	Former Rating
Bright Horizons Family Solutions	BFAM	Downgrade	Hold	Buy
Constellation Brands	STZ.B	Downgrade	Hold	Buy
First Financial Holdings	FFCH	Downgrade	Hold	Buy
Frisch's Restaurants	FRS	Downgrade	Hold	Buy
Jos A Banks Clothiers	JOSB	Downgrade	Hold	Buy
MVC Capital	MVC	Upgrade	Hold	Sell
Nortech Systems	NSYS	Downgrade	Hold	Buy
O I Corp	OICO	Downgrade	Hold	Buy
Phazar	ANTP	Downgrade	Sell	Hold
Salem Communications	SALM	Downgrade	Sell	Hold
Tech Data	TECD	Downgrade	Hold	Buy
United Stationers	USTR	Downgrade	Hold	Buy
Vornado Realty Trust	VNO	Downgrade	Hold	Buy
Verifone Holdings	PAY	Downgrade	Sell	Hold
Bios D'Arc Energy	BDE	Upgrade	Buy	Hold
Rockwood Holdings	ROC	Downgrade	Hold	Buy
Patni Computer Systems	PTI	Downgrade	Sell	Hold
Sparks Networks	LOV	Upgrade	Hold	Sell
US BioEnergy	USBE	Initiation	Hold	n/a
Source: TheStreet.com Ratings