TSC Ratings' Updates: Hartford

Internet Capital's stock share price has done very poorly compared to where it was a year ago. Despite any rallies, the net result is that it is down by 68.67%, which is also worse that the performance of the S&P 500. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.

Net operating cash flow has significantly decreased to negative $4.15 million, or 132.19%, when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Internet Software & Services industry and the overall market, Internet Capital's return on equity significantly trails that of both the industry average and the S&P 500.

The gross profit margin for Internet Capital is currently lower than what is desirable, coming in at 34.90%. Regardless of Internet Capital's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, ICGE's net profit margin of 131.50% significantly outperformed against the industry.

Internet Capital reported significant earnings per share improvement in the most recent quarter compared to the same quarter year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, Internet Capital swung to a loss, reporting negative $0.84 vs. $0.16 in the prior year. This year, the market expects an improvement to a loss of $0.19.

All ratings changes generated on Dec. 2 are listed below.

Ticker	Company	Current	Change	Previous
AP	AMPCO-PITTSBURGH CORP	FROZEN		BUY
APD	AIR PRODUCTS & CHEMICALS INC	HOLD	Downgrade	BUY
BIG	BIG LOTS INC	HOLD	Downgrade	BUY
CODI	COMPASS DIVERSIFIED HOLDINGS	SELL	Downgrade	HOLD
CRT	CROSS TIMBERS ROYALTY TRUST	HOLD	Downgrade	BUY
CTGX	COMPUTER TASK GROUP INC	HOLD	Downgrade	BUY
EQ	EMBARQ CORP	SELL	Downgrade	HOLD
FNSC	FIRST NATL BANCSHARES INC/SC	SELL	Downgrade	HOLD
GBTS	GATEWAY FINANCIAL HLDGS INC	SELL	Downgrade	HOLD
GETI	GENTEK INC	SELL	Downgrade	HOLD
GXDX	GENOPTIX INC	HOLD	Initiated
HIG	HARTFORD FINANCIAL SERVICES	SELL	Downgrade	HOLD
HKN	HKN INC	SELL	Downgrade	HOLD
HRP	HRPT PROPERTIES TRUST	SELL	Downgrade	HOLD
ICCC	IMMUCELL CORP	SELL	Downgrade	HOLD
ICGE	INTERNET CAPITAL GROUP INC	SELL	Downgrade	HOLD
IIG	IMERGENT INC	SELL	Downgrade	HOLD
IPHS	INNOPHOS HOLDINGS INC	SELL	Downgrade	HOLD
ITEX	ITEX CORP	HOLD	Upgrade	SELL
LNCE	LANCE INC	HOLD	Downgrade	BUY
LWAY	LIFEWAY FOODS INC	FROZEN	Downgrade	BUY
MAXY	MAXYGEN INC	HOLD	Upgrade	SELL
MRLN	MARLIN BUSINESS SERVICES INC	SELL	Downgrade	HOLD
MV	METAVANTE TECHNOLOGIES INC	SELL	Initiated
ONFC	ONEIDA FINANCIAL CORP	SELL	Downgrade	HOLD
PKG	PACKAGING CORP OF AMERICA	HOLD	Downgrade	BUY
PRM	PRIMEDIA INC	HOLD	Upgrade	SELL
PWX	PROVIDENCE AND WORCESTER RR	SELL	Downgrade	HOLD
SDBT	SOUNDBITE COMMUNICATIONS INC	SELL	Initiated
SIGI	SELECTIVE INS GROUP INC	HOLD	Downgrade	BUY
SYNO	SYNOVIS LIFE TECH INC	HOLD	Downgrade	BUY
THOR	THORATEC CORP	HOLD	Downgrade	BUY
TRAK	DEALERTRACK HOLDINGS INC	SELL	Downgrade	HOLD
VASC	VASCULAR SOLUTIONS INC	HOLD	Downgrade	BUY

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