TSC Ratings' Updates: Goldman Sachs

The company's net income increased by 0.1% when compared to the same quarter one year prior, edging up from $31.42 million to $31.44 million. Compared to other companies in the industry and the overall market, FirstMerit's return on equity exceeds that of both the industry average and the S&P 500. FirstMerit, with its decline in revenue, underperformed when compared the industry average of 22%. Since the same quarter one year prior, revenue dropped by 3.6%. FirstMerit had been rated a buy since April 2008.

Also receiving a downgrade, International Bancshares (IBOC Quote) was shifted to hold from buy. The company operates as a multibank financial holding company that provides commercial and retail banking services in Texas and Oklahoma.

Its net income increased by 80% when compared to the same quarter one year prior, rising from $18.64 million to $33.48 million. IBOC's revenue growth trails the industry average of 22.4%. Since the same quarter one year prior, revenue increased by 3.1%.

International Bancshares 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 year. During the past fiscal year, International Bancshares increased its bottom line by earning $1.75 a share vs. $1.66 in the prior year.

International Bancshares is off 16.6% from its price level of one year ago, reflecting the general market trend but dismissing company's higher earnings per share on a year-over-year basis. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last 12 months; and it could be down again in the next 12 as well.

Additional ratings changes are listed below.

Ticker	Company Name	Change	New Rating	Former Rating
ABG	Asbury Automotive	Downgrade	Hold	Buy
BWINA	Baldwin & Lyons	Downgrade	Hold	Buy
BXS	BancorpSouth	Downgrade	Hold	Buy
CGS	Chyron	Upgrade	Buy	Hold
CSY	China Sky One Medical	Initiated	Buy
DSW	DSW	Upgrade	Buy	Hold
EMDA	Equity Media Holdings	Initiated	Sell
ESC	Emeritus	Downgrade	Sell	Hold
EXK	Endeavour Silver	Initiated	Sell
FFKY	First Financial Service	Downgrade	Hold	Buy
FLWS	1-800-Flowers.com	Downgrade	Hold	Buy
FMER	FirstMerit	Downgrade	Hold	Buy
GOAM	GoAmerica	Upgrade	Hold	Sell
GS	Goldman Sachs	Downgrade	Hold	Buy
GY	GenCorp	Upgrade	Hold	Sell
HIL	Hill International	Upgrade	Buy	Hold
HRB	H&R Block	Upgrade	Buy	Hold
IBOC	International Bancshares	Downgrade	Hold	Buy
ITC	ITC Holdings	Downgrade	Hold	Buy
JOSB	Jos A Bank	Upgrade	Buy	Hold
LPNT	Lifepoint Hospitals	Downgrade	Hold	Buy
MAGS	Magal Security Systems	Upgrade	Hold	Sell
NPBC	National Penn Bancshares	Downgrade	Hold	Buy
NSR	Neustar	Upgrade	Hold	Sell
PCTI	Pc-Tel	Upgrade	Buy	Hold
PLAB	Photronics	Downgrade	Sell	Hold
SBGI	Sinclair Broadcast	Downgrade	Hold	Buy
SIMO	Silicon Motion Tech	Upgrade	Buy	Hold
TCK	Teck Cominco	Upgrade	Buy	Hold
TCM	Tongjitang Chinese Meds	Downgrade	Sell	Hold
WAL	Western Alliance Bancorp	Upgrade	Hold	Sell