The following ratings changes were generated on Friday, Oct. 31.

We've downgraded Chicago Bridge & Iron ( symbol), which operates as an engineering and procurement and construction company worldwide, from hold to sell, based on its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and poor profit margins.

Net income decreased by 85.4% when compared with the same quarter a year go, from $58.74 million to $8.55 million, significantly underperforming the S&P 500 and the construction and engineering industry. Return on equity has greatly decreased from the same quarter one year prior, trailing the industry average and the S&P 500. Net operating cash flow has significantly decreased to $29.01 million, or 76.55% when compared with the same quarter last year. In addition, the firm's growth rate is much lower than the industry average.Gross profit margin is extremely low at 12.8%, though it has increased from last year. Net profit margin of 0.50% trails the industry average.

Shares tumbled by 76% on the year, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 85.24% compared with the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor, and in one sense, the sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

We've downgraded International Game Technology ( IGT), which engages in the design, manufacture, and marketing of computerized gaming equipment, network systems, and services in North America and internationally, from hold to sell, based on its deteriorating net income, generally weak debt management, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Net income decreased by 57.6% when compared with the same quarter one year ago, falling from $122.60 million to $52.00 million and underperforming the S&P 500 and the hotels, restaurant and leisure industry. The debt-to-equity ratio is very high at 2.49 and currently higher than the industry average, implying very poor management of debt levels within the company. IGT's quick ratio is somewhat strong at 1.32, demonstrating the ability to handle short-term liquidity needs. Net operating cash flow has decreased to $155.60 million, or 39.36% when compared with the same quarter last year. Despite a decrease in cash flow, IGT is still fairing well by exceeding its industry average cash flow growth rate of -80.54%.

IGT has experienced a steep decline in earnings per share in the most recent quarter in comparison with its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, IGT lower earnings of $1.11 versus $1.52 in the prior year. This year, the market expects an improvement in earnings to $1.24.

Shares have tumbled by 72.40% on the year, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 52.63% compared with the year-earlier quarter. Naturally, the overall market trend is bound to be a significant facto, and in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

We've downgraded Sun Microsystems ( JAVA), which provides network computing infrastructure solutions worldwide, from hold to sell, based on its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Sun Microsystems experienced a steep decline in earnings per share in the most recent quarter in comparison with its performance from the same quarter a year ago. During the past fiscal year, it reported lower earnings of 50 cents versus 52 cents in the prior year. For the next year, the market is expecting a contraction of 43.0% in earnings to 29 cents. The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the computers and peripherals industry. The net income has significantly decreased by 1984.3% when compared to the same quarter one year ago, falling from $89.00 million to -$1,677.00 million. Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior, a signal of major weakness within the corporation. Sun Microsystems' return on equity significantly trails that of both the industry average and the S&P 500.

Net operating cash flow has significantly decreased to $148.00 million, or 74.21% when compared with the same quarter last year. In addition, the firm's growth rate is much lower than the industry average. Shares are down 77.48% on the year, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 1966.66% compared with the year-earlier quarter. 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.

We've downgraded Motorola ( MOT), which provides technologies, products and services for mobile communications, from hold to sell, based on its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

Net income decreased by 761.7% when compared with the same quarter one year ago, falling from $60.00 million to -$397.00 million, underperforming the S&P 500 and the communications equipment industry. Current return on equity is lower than its ROE from the same quarter one year prior, a clear sign of weakness within the company, and it significantly trails that of both the industry and the S&P 500.

The gross profit margin for is currently lower than what is desirable, coming in at 25.80%, having decreased from the same quarter the previous year. Net profit margin of -5.30% is significantly below that of the industry average. Net operating cash flow has decreased to $180.00 million or 47.36% when compared to the same quarter last year, the firm's growth is significantly lower than the industry average. Shares tumbled by 72.36% over the year, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 1,000% compared with the year-earlier quarter. 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.

We've downgraded STMicroelectronics ( STM), which designs, develops, manufactures, and markets a range of semiconductor products, from hold to sell, based on its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Net income decreased by 254.3% when compared to the same quarter one year ago, falling from $188.00 million to -$290.00 million, underperforming the S&P 500 and the semiconductors and semiconductor equipment industry. The company's current return on equity has slightly decreased from the same quarter one year prior, implying a minor weakness in the organization and significantly trailing both the industry average and the S&P 500. Net operating cash flow has decreased to $414.00 million, or 18.98% when compared with the same quarter last year. Despite a decrease in cash flow of 18.98%, STMicroelectronics is still significantly exceeding the industry average of -88.42%.

The company's earnings per share are down 260% compared with the year-earlier quarter. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, STMicroelectronics swung to a loss, reporting -54 cents versus 84 cents in the prior year. This year, the market expects an improvement in earnings to 71 cents. Shares are down 51.53% on the year, worse than the S&P 500's performance. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

Other ratings changes include Real Networks ( RNWK) and Owens Corning ( OC), both downgraded from hold to sell.

All ratings changes generated on Oct. 31 are listed below.
Ticker Company Current Change Previous
AIT Applied INdustrial HOLD Downgrade BUY
ARA Aracruz SELL Downgrade HOLD
BNV Beverly National SELL Downgrade HOLD
CBI Chicago Bridge & Iron SELL Downgrade HOLD
CBIN Community Bank Shares HOLD Upgrade SELL
CBS CBS SELL Downgrade HOLD
CBS.A CBS SELL Downgrade HOLD
CHK Chesapeake HOLD Upgrade SELL
DAR Darling International HOLD Downgrade BUY
DAVE Famous Dave's SELL Downgrade HOLD
DVD Dover Motorsports SELL Downgrade HOLD
ENP Encore Energy Partners SELL Initiated
ENR Energizer Holdings HOLD Downgrade BUY
FNDT Fundtech HOLD Downgrade BUY
GES Guess HOLD Downgrade BUY
GMXR GMX Resources HOLD Downgrade BUY
GSVI GSVI SELL Downgrade HOLD
GVP GSE Systems SELL Downgrade HOLD
HPCO Hallador Petroleum HOLD Upgrade SELL
IGT International Game SELL Downgrade HOLD
IMOS ChipMOS Technologies SELL Downgrade HOLD
JAVA Sun Microsystems SELL Downgrade HOLD
MOT Motorola SELL Downgrade HOLD
MTL Mechel HOLD Downgrade BUY
NSFC Northern States Financial SELL Downgrade HOLD
OC Owens Corning SELL Downgrade HOLD
OIIM O2MICRO INTERNATIONAL LTD SELL Downgrade HOLD
ORCC Online Resources SELL Downgrade HOLD
ORIT Oritani Financial SELL Downgrade HOLD
PRXL Parexel HOLD Downgrade BUY
RNWK RealNetworks SELL Downgrade HOLD
SPAN Span-America Medical HOLD Downgrade BUY
STM STMicroelectronics SELL Downgrade HOLD
UBMI United Bancorp SELL Downgrade HOLD
UTHR United Therapeutics HOLD Downgrade BUY
VPRT VistaPrint HOLD Downgrade BUY

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