TSC Ratings' Upgrades, Downgrades: Palm

Hain's revenue growth trails the industry average of 35.6%. Since the same quarter one year prior, revenue rose by 11.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. The current debt-to-equity ratio, 0.40, is low and below the industry average, implying that there has been successful management of debt levels. To add to this, Hain has a quick ratio of 1.52, which demonstrates the ability of the company to cover short-term liquidity needs.

Hain Celestial's earnings per share declined by 33.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. However, we feel it is poised for EPS growth in the coming year. During the past fiscal year, Hain increased its bottom line by earning $1.16 a share, vs. 93 cents in the prior year. This year, the market expects an improvement in earnings ($1.39 vs. $1.16).

The gross profit margin for Hain Celestial Group is currently lower than what is desirable, coming in at 30.9%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 3.1% trails that of the industry average. Net operating cash flow has significantly decreased to $10.14 million, or 51.32% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower. Hain had been rated a buy since June 26, 2006.

Additional ratings changes are listed below.

Ticker	Company Name	Change	New Rating	Former Rating
AEL	American Equity Investment Life	Downgrade	Hold	Buy
ALIF	Artificial Life	Upgrade	Hold	Sell
COLB	Columbia Banking System	Downgrade	Hold	Buy
DKS	Dick's Sporting Goods	Downgrade	Hold	Buy
GLOI	GlobalOptions Group	Initiated	Sell
HAIN	Hain Celestial Group	Downgrade	Hold	Buy
HDIX	Home Diagnostics	Upgrade	Hold	Sell
KMX	Carmax	Downgrade	Hold	Buy
LGL	LGL Group	Downgrade	Sell	Hold
NWS	News Corp.	Downgrade	Hold	Buy
OPTR	Optima Pharmaceuticals	Upgrade	Hold	Sell
PALM	Palm Inc.	Upgrade	Hold	Sell
RDI	Reading International	Downgrade	Sell	Hold
RNST	Renasant Corp.	Downgrade	Hold	Buy
UPG	Universal Power Group	Downgrade	Sell	Hold
VLO	Valero Energy	Downgrade	Hold	Buy
VMC	Vulcan Metals	Downgrade	Hold	Buy