This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

TSC Ratings' Updates: ResMed

Note: Our quantitative model makes stock recommendations based on GAAP figures that may differ materially from data as reported by the companies themselves. As a result, rating changes are occasionally driven by so-called nonrecurring items. As always, we urge readers to use TSC Ratings' reports in conjunction with additional information to construct their opinions on the value that should be placed on any given stock.

The following ratings changes were generated on Thursday, March 26.

We've downgraded Capital City Bank Group (CCBG - Get Report), which operates as the holding company for Capital City Bank, offering commercial and retail banking services in Florida, Georgia and Alabama, from hold to sell. This rating is driven by the company's generally disappointing historical performance in the stock itself, feeble growth in its earnings per share, disappointing return on equity and weak operating cash flow.

Capital City experienced a decline in earnings per share in the most recent quarter compared with the same quarter last year, and we anticipate its two-year trend of declining EPS to continue in the coming year. The company's return on equity also decreased. Net operating cash flow fell to -$3.6 million in the most recent quarter. Net income decreased from $7.7 million to -$1.7 million.

Shares have tumbled by 57.1% over the past year, underperforming the S&P 500, but based on its current price in relation to its earnings, Capital City is still more expensive than most of the other companies in its industry.

We've upgraded independent investment banking company Greenhill (GHL - Get Report) from hold to buy, driven by its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

The 0.1 deb-to-equity ratio is below the industry average, implying successful management of debt levels. The 1.4 quick ratio implies an ability to avoid short-term cash problems. The 40.8% gross profit margin is strong, though it has decreased from the same period last year. Revenue fell 45.6% since the year-ago quarter, and EPS declined in the most recent quarter compared with the year-ago quarter. However, we anticipate that the company's two-year pattern of declining EPS should reverse in the coming year. Net income fell by 56% compared with the year-ago quarter, from $28.5 million to $12. 5 million.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
LH $124.36 1.10%
MWE $64.80 -0.23%
RMD $64.65 0.45%
ABMC $0.12 0.00%
CCBG $15.50 0.19%


DOW 18,246.18 +113.48 0.63%
S&P 500 2,110.93 +6.43 0.31%
NASDAQ 4,992.5050 +28.9780 0.58%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs