TSC Ratings' Updates: Intel

The company's current return on equity greatly increased when compared with its ROE from the same quarter a year ago. This is a signal of significant strength within the corporation. In comparison to the other companies in the media industry and the overall market, DreamWorks' return on equity significantly exceeds that of the industry average and is above that of the S&P 500.

Net operating cash flow has significantly increased by 265.23% to $109.26 million when compared with the same quarter last year. In addition, DreamWorks has also vastly surpassed the industry average cash flow growth rate of negative 12.97%.

Compared with where it was trading a year ago, DreamWorks' share price has not changed very much due to the relatively weak year-over-year performance of the overall market, the company's stagnant earnings and other mixed results. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.

We consider a 48.40% gross profit margin for DreamWorks strong. Regardless of DreamWorks' high profit margin, it decreased from the same period last year. Despite the mixed results of the gross profit margin, DreamWorks' net profit margin of 19.50% compares favorably to the industry average.

DreamWorks had been rated a hold as of November 2006.

Next is chipmaker Intel(INTC Quote), which also was upgraded to buy from hold. Based in Santa Clara, Calif., the technology firm has improved earnings per share by 27.3% in the most recent quarter from a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year and we feel that this trend should continue. During the past fiscal year, Intel increased its bottom line by earning $1.18, up from 86 cents in the prior year. This year, the market expects an improvement in earnings to $1.28.