We've downgraded biopharmaceutical company Celgene ( CELG) from hold to sell, driven by its deteriorating net income, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share. Net income fell from $75.3 million in the year-ago quarter to -$149.3 million in the most recent quarter, significantly underperforming the S&P 500 and the biotechnology industry. ROE also great decreased, a signal of major weakness within the corporation. Net operating cash flow fell to -$294.2 million. EPS declined steeply, though the consensus estimate suggest that the company's two-year trend of declining EPS should reverse in the coming year. Share price has not changed very much compared with a year ago but has come down somewhat, which should not necessarily be interpreted as a negative. Its decline 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 upgraded shopping-mall-based specialty retailer Hot Topic ( HOTT) from hold to buy, driven by its revenue growth, growth in earnings per share, increase in net income, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Revenue increased by 4.7% since the same quarter last year, and EPS improved by 13.3%. The company has demonstrated a pattern of positive earnings per share growth over the past year, which feel that this trend should continue. Net income increased by 11.4% since the year-ago quarter, from $6.7 million to $7.4 million, significantly outperforming the S&P 500 and the specialty retail industry. Hot Topic's 42.4% gross profit margin is strong, having increased from the same quarter last year, and its net profit margin of 3.8% is above the industry average. Net operating cash flow increased by 48% to $14.2 million compared with the year-ago quarter.