Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy. Magellan had been rated a hold since June 16, 2008. Saba Software AG ( SABA), which provides a software platform for enterprise learning, collaboration, performance and talent management, was downgraded to sell. The downgrade was the result specific weaknesses that can be seen in multiple areas, such as its weak operating cash flow and generally disappointing historical performance in the stock itself. The return on equity has improved slightly when compared with the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Internet Software & Services industry and the overall market, Saba Software's return on equity significantly trails that of both the industry average and the S&P 500. Although the company's debt-to-equity ratio of 0.03 is very low, it is currently higher than that of the industry average. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.87 is somewhat weak and could be cause for future problems. Net operating cash flow has declined marginally by 8.40% to $3.87 million when compared with the same quarter last year. After analyzing its recent quarterly report, we notice Saba Software's gross profit margin is rather high; currently at 65.80%. Gross Margins has increased from the same quarter the previous year but the company's net profit margin of 0.60% significantly trails the industry average. Saba Software's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 44.08%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. But as of now, we feel the stock is still not a good buy. Saba Software had been rated a hold since February 22, 2007.