TSC Ratings' Updates: Whirlpool

Minas Buenaventura's net income has significantly decreased by 272% when compared to the same quarter one year ago, falling from $36.66 million to -$62.97 million. Net operating cash flow has significantly decreased to -$480.35 million, or by 2,179% when compared to the same quarter last year. In addition, when compared to the industry average, the firm's growth rate is much lower. Minas Buenaventura had been rated buy since July 2006.

We also downgraded EastGroup Properties (EGP Quote) to hold. This real estate investment trust (REIT) focuses on the development, acquisition and operation of industrial properties in the U.S.

EastGroup has improved EPS by 24% 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 two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving.

Over the past fiscal year, EastGroup increased its bottom line by earning $1.10 a share, vs. 87 cents in the prior year. This year, the market expects an improvement in earnings ($1.21 a share vs. $1.10). The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed the S&P 500 and exceeded the REIT industry average. Net income increased 23% over the same quarter one year prior, rising from $6.59 million to $8.09 million. We consider its growth profit margin of 37% to be strong.