Each business day, TheStreet.com Ratings updates its ratings on the stocks it covers. The proprietary ratings model projects a stocks total return potential over a 12-month period, including both prices 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.

The following ratings changes were generated on June 25.

TBS International

( TBSI), and ocean transportation services company, was upgraded to buy. Revenue grew by 87% from the same quarter last year, far above the industry average. Behind earnings growth of 217%, the stock has surged 41% over the past year. Earnings per share were also up during the past fiscal year, at $3.50 vs. $1.39 the previous year. The market also predicts more improvement in EPS during this year. TBS International had been rated hold since Feb. 22.

Ventas

(VTR) - Get Report

, a real estate investment trust, was downgraded to hold. There is feeble growth in the company's EPS as well as disappointing return on equity. Revenue growth was very impressive, leaping 97% over the same quarter last year. Debt-to-equity ratio is at 1.06, below the industry average but still acceptable. Net profit margin, at 13.8%, greatly trails the industry average. Ventas had been rated buy since May 9.

G-III Apparel Group

(GIII) - Get Report

, an outerwear and sportswear designer, was downgraded to hold. Revenue growth is very impressive, at 114% from the same quarter one year prior. Debt-to-equity ratio is also very low at 0.16, implying a successful management of debt levels. It's quick ratio of 0.84, however, is somewhat weak and could be a cause of future problems. Net income has significantly underperformed compared to the industry, down 6.8% from the same quarter one year ago. G-III Apparel had been rated buy since June 13, 2007.

Drugstore.com

( DSCM), which provides online health, beauty, vision and pharmacy products, was downgraded to sell. Key weaknesses include disappointing historical performance in the stock and poor profit margins. Share price is down 26% compared to one year ago, below the performance of the

S&P 500

. The gross profit margin, at 25%, is less than desirable but is still an increase from the same period a year ago. Net operating cash flow has increased 133% from the same quarter last year, significantly higher than the industry average. Drugstore.com had been rated hold since Nov. 2, 2007.

Greenlight Capital Re

(GLRE) - Get Report

, which operates as a specialty property and casualty reinsurance company, had ratings initiated at hold. Revenue growth is very impressive, up 232% from the same quarter one year prior. Share price, however, has seen very little change due to mixed factors. Debt-to-equity ratio is low at 0.43, but still above the industry average.

Additional ratings changes from June 25 are listed below.

Ticker

Company Name

Change

New Rating

Former Rating

BOFI

BOFI Holding Inc.

Upgrade

Hold

Sell

DSCM

Drugstore.com Inc.

Downgrade

Sell

Hold

GIII

G-III Apparel Group Ltd.

Downgrade

Hold

Buy

GLRE

Greenlight Capital Re, Ltd.

Initiated

Hold

MIG

Meadowbrook Insurance Group Inc.

Downgrade

Hold

Buy

SRCE

1st Source Corporation

Downgrade

Hold

Buy

TBSI

TBS International Ltd.

Upgrade

Buy

Hold

VTR

Ventas Inc.

Downgrade

Hold

Buy

WEST

Western Sizzlin Corporation

Downgrade

Hold

Buy

WVVI

Willamette Valley Vineyards Inc.

Downgrade

Hold

Buy

This article was written by a staff member of TheStreet.com Ratings.