TSC Ratings' Updates: Microsoft

The following ratings changes were generated on Tuesday, Oct. 28.

We've downgraded mining equipment company Bucyrus International(BUCY Quote) from buy to hold. Strengths include its robust revenue growth, impressive record of EPS growth and compelling growth in net income. Weaknesses include a generally disappointing performance in the stock itself and poor profit margins.

Revenue rose by 29.1% over the same quarter a year ago, surpassing the industry average of 10.4% growth and boosting EPS, which increased significantly. In fact, the company's EPS have grown over the past two years, and we feel this trend should continue. During the past fiscal year, Bucyrus increased its bottom line by earning $1.89 vs. $1.12 in the prior year, and this year, the market expects further improvement to $3.17. The current debt-to-equity ratio, 0.56, is low and is below the industry average, implying successful management of debt levels. The quick ratio, however, of 0.87 is somewhat weak and could be cause for future problems. ...