|Stock Upgrades, Downgrades|
|Company Name||Ticker||Change||New Rating||Former Rating|
|Adams Resources & Energy||AE||Downgrade||Hold||Buy|
|Bed Bath & Beyond||BBBY||Downgrade||Hold||Buy|
|Streamline Health Solutions||STRM||Downgrade||Sell||Hold|
|Telephone & Data Systems||TDS||Downgrade||Hold||Buy|
|Baytex Energy Trust||BTE||Downgrade||Sell||Hold|
|Pengrowth Energy Trust||PGH||Initiation||Hold||n/a|
|Source: TheStreet.com Ratings|
Each weekday, 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. Diversified industrial corporation General Electric ( GE) has been downgraded to a hold from a buy. The company shows mixed results, some strengths and some weaknesses, with little evidence to justify the expectation of either a positive or negative performance for the stock relative to others covered by TheStreet.com Ratings. Its strengths include revenue growth of 10.2% in the second quarter of 2007 compared with the same period last year, and EPS growth of 13.04% over the same timeframe. This growth has contributed to a 12.14% rise in GE's stock price over the past 12 months. As a counter to its strengths, the company has not been very careful in the management of its balance sheet. GE had been rated a buy since May 2007.
Goldcorp ( GG) engages in the acquisition, exploration, development and operation of precious metal properties in the Americas and Australia. It has been downgraded to a hold from a buy. The company has a largely solid financial position with reasonable debt levels by most measures, expanding profit margins and revenue growth of 15.4% in the second quarter of 2007 compared with the same period last year. However, over the same period, net income fell by 98.5%, to $2.90 million from $190.41 million. The company has not demonstrated a clear trend in EPS over the past two years, making it difficult to accurately predict earnings for the coming year. Poor earnings contributed in part to a stock decline of 24.5% over the past 12 months. Goldcorp had been rated a buy since August 2005. Home furnishings retailer Bed Bath & Beyond ( BBBY) has been downgraded to a hold from a buy. The company's strengths include its good cash flow from operations and revenue growth of 11.3% in the first quarter of its fiscal 2007 -- which ended July 27 -- compared with the same period last year. It also reported EPS growth of 8.6% over the same timeframe, continuing a pattern of EPS growth over the past two years. The earnings do not seem to have influenced the stock price, which has declined by 1.39% in the past 12 months. The company also shows a disappointing return on equity. Bed Bath & Beyond had been rated a buy since October 2006.
Telephone and Data Systems ( TDS) provides wireless and wireline telecommunications services. It has been downgraded to a hold from a buy. The company has a largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. Its revenue grew 11.6% in the second quarter of 2007 compared with the same period last year, trailing the industry average of 77.5%. However, the company posted a net loss of $8.63 million in the second quarter compared with a profit of $166.76 million in the same period last year. Its return on equity of 4.44% in the quarter marked a decrease from 12.26% in the same time in 2006, which underperformed both that of the industry average and of the S&P 500. Cytyc ( CYTC) designs, develops, manufactures and markets diagnostic and surgical products. It has been downgraded to a hold from a buy. The company's strengths can be seen in multiple areas, including its expanding profit margins, reasonable debt levels by most measures and revenue growth of 25.6% in the second quarter of 2007 compared with the same period a year earlier, which outpaced the industry average of 11.3%. As a counter to these strengths, the company has reported somewhat volatile earnings recently, but TheStreet.com Ratings believes it is poised for EPS growth in the coming year. It has also seen return on equity decline to 7.69% in the second quarter of 2007 compared with 19.46% the year before. The ROE decline is a signal of major weakness within the corporation. Cytyc had been rated a buy since August 2005. Additional ratings changes are listed below.