TSC Ratings' Updates: Whirlpool

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. Net operating cash flow has declined marginally to $13.63 million, or by 6.3% 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. EastGroup Properties had been rated buy since July 2006.

Next up is Washington Federal (WFSL Quote), which also was downgraded to hold. The company operates as the holding company for Washington Federal Savings, which provides various financial services in the U.S.

Since the same quarter one year prior, revenue rose by 22%. The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the thrifts and mortgage finance industry. The net income increased by 6% when compared to the same quarter one year prior, going from $33.48 million to $35.45 million. Its gross pro0fit margin is 40.5%, which we consider to be strong.

Net operating cash flow has significantly decreased to $10.28 million, or by 63% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower. Washington Federal had been rated buy since May 2007.

And finally, Whirlpool (WHR Quote) was downgraded to hold. This company manufactures and markets home appliances worldwide. Its principal products include laundry appliances, refrigerators, cooking appliances, dishwashers and mixers and other small household appliances.

The company's revenue growth -- a 5% increase over the same quarter one year prior -- significantly trails the industry average of 48%. Compared to other companies in the household durables industry and the overall market, Whirlpool's return on equity exceeds that of both the industry average and the S&P 500.

Whirlpool's gross profit margin is rather low; currently it is at 16.5%. It has decreased from the same quarter the previous year. Along with this, its net profit margin of 2% trails that of the industry average. Net operating cash flow has significantly decreased to -$338 million, or by 121% when compared to the same quarter last year. Whirlpool had been rated buy since July 2006.

Additional ratings changes are listed below.

Ticker	Company Name	Change	New Rating	Former Rating
AZN	AstraZeneca	Upgrade	Buy	Hold
BVN	Minas Buenaventura	Downgrade	Hold	Buy
CPSL	China Precision Steel	Downgrade	Sell	Hold
EGP	Eastgroup Properties	Downgrade	Hold	Buy
EHTH	Ehealth	Downgrade	Sell	Hold
GAIA	Gaiam	Downgrade	Hold	Buy
INDB	Independent Bank	Downgrade	Hold	Buy
MXC	Mexco Energy	Upgrade	Buy	Hold
NATL	National Interstate	Downgrade	Hold	Buy
PPC	Pilgrim's Pride	Downgrade	Sell	Hold
RADS	Radiant Systems	Downgrade	Hold	Buy
RJET	Republic Airways Holdings	Downgrade	Hold	Buy
WASH	Washington TR Bancorp	Downgrade	Hold	Buy
WFSL	Washington Federal	Downgrade	Hold	Buy
WHR	Whirlpool	Downgrade	Hold	Buy