TSC Ratings' Updates: BancorpSouth

Although the company reported lower revenue and swung to net loss, it remained debt free during the quarter and revenue from the global customer support segment advanced 15.2% to $36.80 million. Furthermore, any improvement in the semiconductor manufacturing equipment market may boost the company's financial performance in the upcoming quarters.

BRKS had been rated a hold since November 6, 2007.

BlackRock Kelso(BKCC Quote) was initiated at sell. BlackRock Kelso is a private equity firm specializing in investments in middle market companies. The firm invests in all industries. The rating is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared with most of the stocks we cover. The area that we feel has been the company's primary weakness has been its feeble growth in its earnings per share.

The change in net income from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared with the capital markets industry average. The net income has decreased by 6.0% when compared with the same quarter one year ago, dropping from $12.62 million to $11.86 million.

BKCC's earnings per share declined by 12.0% in the most-recent quarter compared with the same quarter a year ago. This year, the market expects an improvement in earnings ($1.62 vs. -1 cent).

Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, BKCC has underperformed the S&P 500 Index, declining 20.74% from its price level of one year ago.