TSC Ratings' Updates: Microsoft

We've downgraded Windstream(WIN Quote), which provides various telecommunications services in rural communities in the U.S., from hold to sell, driven by its generally weak debt management, weak operating cash flow and generally disappointing historical performance in the stock itself.

The debt-to-equity ratio is very high at 10.69 and currently higher than the industry average, implying very poor management of debt levels within the company. Windstream also has a quick ratio of 0.60, demonstrating an inability to cover short-term liquidity needs. Net operating cash flow has declined marginally to $291.80 million, or 2.14% when compared with the same quarter last year, but it still exceeds the industry average cash flow growth rate of -22.26%. Net income decreased 12% over the same quarter last year, outperforming the S&P 500 but underperforming the diversified telecommunication services industry. Revenue dropped by 3.2%, underperforming the industry average of 8.3%, but EPS increased nonetheless.

Shares are down 47.24% on the year. Naturally, the overall market trend is bound to be a significant factor, and in one sense, the stock's sharp decline makes it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

Other ratings changes include Continental(CAL Quote) and Chesapeake(CHK Quote), both downgraded from hold to sell.

All ratings changes generated on Oct. 28 are listed below.

ACV	Alberto-Culver	HOLD	Downgrade	BUY
AFSI	Amtrust	SELL	Downgrade	HOLD
ALTR	Altera	HOLD	Downgrade	BUY
ANW	Aegean Marine	SELL	Downgrade	HOLD
ASR	Grupo Aeroportuario	HOLD	Downgrade	BUY
ATX	A.T. Croxx	HOLD	Downgrade	BUY
AVB	AvalonBay	HOLD	Downgrade	BUY
AXE	Anixter	HOLD	Downgrade	BUY
BAS	Basic Energy Services	SELL	Downgrade	BUY
BTM	Brasil Telecom	HOLD	Downgrade	BUY
BUCY	Bucyrus International	HOLD	Downgrade	BUY
CAL	Continental Airlines	SELL	Downgrade	HOLD
CBON	Community Bancorp	SELL	Downgrade	HOLD
CHBT	China-Biotics	HOLD	Initiated
CHDN	Churchill Downs	HOLD	Downgrade	BUY
CHK	Chesapeake Energy	SELL	Downgrade	HOLD
CHYR	Chyron	HOLD	Downgrade	BUY
CLF	Cliffs Natural Resources	HOLD	Downgrade	BUY
CMI	Cummins	HOLD	Downgrade	BUY
CNBC	Center Bancorp	HOLD	Upgrade	SELL
COP	ConocoPhillips	HOLD	Downgrade	BUY
CPA	Copa Holdings	SELL	Downgrade	HOLD
CPHL	Castlepoint	SELL	Downgrade	HOLD
DHR	Danaher	HOLD	Downgrade	BUY
DSGX	Descartes Systems	HOLD	Downgrade	BUY
EME	Emcor Group	HOLD	Downgrade	BUY
EMR	Emerson Electric	HOLD	Downgrade	BUY
EPIQ	Epiq Systems	HOLD	Downgrade	BUY
ESE	Esco Technologies	HOLD	Downgrade	BUY
EXC	Exelon	HOLD	Downgrade	BUY
FFCH	First Financial	HOLD	Downgrade	BUY
FMC	FMC	HOLD	Downgrade	BUY
GD	General Dynamics	HOLD	Downgrade	BUY
GTI	Graftech International	HOLD	Downgrade	BUY
HAIN	Hain Celestial	HOLD	Downgrade	BUY
HW	Headwaters	SELL	Downgrade	HOLD
IIT	Indosat	HOLD	Downgrade	BUY
INFA	Informatica	HOLD	Downgrade	BUY
INSW	InsWeb	SELL	Downgrade	HOLD
INWK	InnerWorkings	SELL	Downgrade	HOLD
LB	LaBarge	HOLD	Downgrade	BUY
MCCC	Mediacom Communications	SELL	Downgrade	HOLD
MHS	Medco Health	HOLD	Downgrade	BUY
MLM	Martin Marietta	HOLD	Downgrade	BUY
MSBF	MSB Financial	SELL	Downgrade	HOLD
MSFT	Microsoft	HOLD	Downgrade	BUY
MT	Arcelor Mittal	HOLD	Downgrade	BUY
NAVG	Navigators Group	HOLD	Downgrade	BUY
NOVL	Novell	SELL	Downgrade	HOLD
NR	Newpark Resources	HOLD	Downgrade	BUY
NWPX	Northwest Pipe	HOLD	Downgrade	BUY
REPR	Repro- Med Systems	HOLD	Upgrade	SELL
RLI	RLI	HOLD	Downgrade	BUY
RRST	RRSat Global	SELL	Downgrade	HOLD
SAPE	Sapient	HOLD	Downgrade	BUY
SCUR	Secure Computing	HOLD	Upgrade	SELL
SID	CSN	HOLD	Downgrade	BUY
SII	Smith International	HOLD	Downgrade	BUY
SMTS	Somanetics	HOLD	Downgrade	BUY
SPG	Simon Property Group	HOLD	Downgrade	BUY
SXCI	SXC Health Solutions	SELL	Downgrade	HOLD
SYMM	Symmetricom	SELL	Downgrade	HOLD
SYNT	Syntel	HOLD	Downgrade	BUY
TG	Tredegar	HOLD	Downgrade	BUY
TGC	Tengasco	HOLD	Downgrade	BUY
TIN	Temple-Inland	SELL	Downgrade	HOLD
TLK	Telekomunikasi Indonesia	HOLD	Downgrade	BUY
TRMK	Trustmark	HOLD	Downgrade	BUY
TSM	Taiwan Semiconductor	HOLD	Downgrade	BUY
TZOO	Travelzoo	SELL	Downgrade	HOLD
UBA	Urstadt Biddle	HOLD	Downgrade	BUY
UHT	Universal Health Realty	HOLD	Downgrade	BUY
UNF	Unifirst	HOLD	Downgrade	BUY
UNTY	Unity Bancorp	SELL	Downgrade	HOLD
UTX	United Technologies	HOLD	Downgrade	BUY
UVE	Universal Insurance	HOLD	Downgrade	BUY
WAL	Western Alliance Bancorp	SELL	Downgrade	HOLD
WCBO	West Cost Bancorp	SELL	Downgrade	HOLD
WIN	Windstream	SELL	Downgrade	HOLD
WSFS	WSFS Financial	HOLD	Downgrade	BUY
XTO	XTO Energy	HOLD	Downgrade	BUY
YGE	Yingli Green Energy	SELL	Initiated
Source: TheStreet.com Ratings

Each business day, TheStreet.com Ratings updates its ratings on the stocks it covers. The proprietary ratings model projects a stock's total return potential over a 12-month period, including both price appreciation and dividends. Buy, hold or sell ratings designate how the Ratings group expects these stocks to perform against a general benchmark of the equities market and interest rates.

While the ratings model is quantitative, it uses both subjective and objective elements. For instance, subjective elements include expected equities market returns, future interest rates, implied industry outlook and company earnings forecasts. Objective elements include volatility of past operating revenue, financial strength and company cash flows.

However, the rating does not incorporate all of the factors that can alter a stock's performance. For example, it doesn't always factor in recent corporate or industry events that could affect the stock price, nor does it include recent technology developments and competitive dynamics that may affect the company.

For those reasons, we believe a rating alone cannot tell the whole story, and that it should be part of an investor's overall research.