TSC Ratings' Updates: Sina

We've upgraded WGL Holdings(WGL Quote), which engages in the delivery and sale of natural gas, and provides energy-related products and services, from hold to buy, driven by its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.

WGL's net income growth of 17.6% from the same quarter one year ago has greatly exceeded that of the S&P 500 but is less than the gas utilities industry average. Revenue growth of 20.3% trails the industry average of 33.4% but does appear to have boosted EPS. The debt-to-equity ratio is somewhat low, currently at 0.88, and is less than that of the industry average, implying a relatively successful effort in the management of debt levels. However, the quick ratio of 0.28 is very weak and demonstrates a lack of ability to pay short-term obligations. The return on equity has improved slightly when compared to the same quarter one year prior, which can be construed as a modest strength in the organization. On the basis of ROE, WGL underperformed the industry average but outperformed the S&P 500.

Compared with a year ago, WGL's share price has not changed very much due to the relatively weak year-over-year performance of the overall market and the company's stagnant earnings. It goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.

Other ratings changes include Design Within Reach(DWRI Quote) and BioScrip(BIOS Quote), both downgraded from hold to sell.

All ratings changes generated on Dec. 3 are listed below.

Ticker	Company	Current	Change	Previous
AFFM	Affirmative Insurance	SELL	Downgrade	HOLD
BIOS	BioScrip	SELL	Downgrade	HOLD
CNI	Canadian National Railway	HOLD	Downgrade	BUY
CTO	Consolidated Tomoka Land	SELL	Downgrade	HOLD
DWRI	Design Within Reach	SELL	Downgrade	HOLD
EPIQ	Epiq Systems	BUY	Upgrade	HOLD
OVTI	Omnivision Technologies	SELL	Downgrade	HOLD
PBR.A	Petrobras	HOLD	Downgrade	BUY
PSMT	PriceSmart	HOLD	Downgrade	BUY
SCOP	Scopus Video Networks	SELL	Downgrade	HOLD
SINA	Sina	HOLD	Downgrade	BUY
WGL	WGL Holdings	BUY	Upgrade	HOLD

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.