TSC Ratings' Updates: Research In Motion

We've downgraded Cohen & Steers (CNS Quote), which together with its subsidiaries, manages high-income equity portfolios in the United States, from buy to hold. The primary factors that have impacted our rating are mixed . Among the primary strengths of the company is its respectable return on equity which we feel is likely to continue. At the same time, however, we also find weaknesses including a generally disappointing performance in the stock itself, poor profit margins and weak operating cash flow.

Despite the weak revenue results, C&S has significantly outperformed against the industry average of 64.6%. Since the same quarter one year prior, revenues fell by 29.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. In comparison to the other companies in the Capital Markets industry and the overall market, C&S's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.

The gross profit margin for C&S is currently lower than what is desirable, coming in at 27.70%. It has decreased from the same quarter the previous year.

Net operating cash flow has significantly decreased to $12.77 million or 59.60% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

We've downgraded Synaptics (SYNA Quote), which develops and supplies custom-designed interface solutions that enable people to interact with various electronic devices, from buy to a hold. The primary factors that have impacted our rating are mixed.The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share and increase in net income. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and weak operating cash flow.