|Ticker||Company Name||Change||New Rating||Former Rating|
|BELM||BELL MICROPRODUCTS INC||Downgrade||Sell||Hold|
|CT||CAPITAL TRUST INC/MD||Downgrade||Hold||Buy|
|HCN||HEALTH CARE REIT INC||Upgrade||Buy||Hold|
|JPM||JPMORGAN CHASE & CO||Downgrade||Hold||Buy|
|NLCI||NOBEL LEARNING CMNTYS INC||Upgrade||Buy||Hold|
|Source: INSERT SOURCE|
JPMorgan Chase ( JPM), a financial services company, has been downgraded to hold. Strengths including revenue growth, attractive valuation and expanding profit margins are balanced by poor debt management, weak operating cash flow and a disappointing stock-price performance. For the fourth quarter, revenue grew 8.2% year over year to $28.78 billion, but EPS decreased to 86 cents from $1.09. Return on equity has improved marginally over the same period. JPMorgan's debt-to-equity ratio, at 3.50, exceeds industry average, implying very poor management of debt levels. Net operating cash flow has decreased to -$29.25 billion from the year-ago quarter. In addition, the firm's growth rate is much lower than the industry average. JPMorgan Chase had been rated buy since March 3, 2006. Nobel Learning Communities ( NLCI), which operates a network of nonsectarian private schools, has been upgraded to buy. For the second quarter of its fiscal 2008, revenue increased 12% to $51.2 million, but earnings per share decreased to 21 cents from 34 cents. For 2008, the market expects full-year EPS to improve to 74 cents from 71 cents for 2007. Net operating cash flow increased 274% to $4.96 million over the same period. However, the company's growth still lags the industry average. With a debt-to-equity ratio of 0.07, Nobel Learning Communities displays successful management of debt levels. However, its quick ratio of 0.07 shows an inability to pay short-term obligations. Nobel Learning Communities had been rated hold since Feb. 6. Additional ratings changes are listed below.