TSC Ratings provides exclusive stock, ETF and mutual fund ratings and commentary based on award-winning, proprietary tools. Its "safety first" approach to investing aims to reduce risk while seeking solid outperformance on a total return basis.P/>The following ratings changes were generated on Wednesday, April 8.

We've downgraded investment manager Calamos Asset Management ( CLMS) from hold to sell, driven by 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 fell to -$26.1 million in the most recent quarter from $9.3 million in the year-ago quarter. Return on equity also decreased, which could signal weakness in the corporation. Net operating cash flow fell 94.4% to $3.7 million, and EPS are also down, though the consensus estimate suggests that the company's two-year pattern of declining EPS should reverse in the coming year.

Shares have tumbled 70% over the past year, underperforming the S&P 500. 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 upgraded off-price apparel and home-fashions retailer TJX ( TJX) from hold to buy, driven by its respectable return on equity which we feel is likely to continue. We feel these strengths outweigh the fact that the company shows low profit margins.

ROE rose compared with the same quarter last year, a sign of strength within the company, but revenue dropped by 0.2%. EPS also declined, and we expect the company to report a decline in EPS in the coming year. Net income fell 16.8% compared with the year-ago quarter, from $301.2 million to $250.7 million.

Shares are down 19.9% over the past year, in part reflecting the market's overall decline. The fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it is one of the factors that makes this stock an attractive investment.

We've upgraded branded apparel company VF Corp. ( VFC) from hold to buy, driven by its expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

The 44.7% gross profit margin is strong, though it's decreased from the same period last year. The 6.1% net profit margin compares favorably with the industry average. Revenue fell 2.2% since the year-ago quarter, and EPS also declined. The debt-to-equity ratio of 0.3 is low, though it's above the industry average, and the 1.2 quick ratio is sturdy. Net income fell 29.5% compared with the same quarter last year, from $164.4 million to $115.9 million. Net operating cash flow fell 7.2% to $619.6 million.

We've upgraded specialty pharmaceutical company Watson Pharmaceuticals ( WPI) from hold to buy, driven by its impressive record of earnings per share growth, compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

EPS rose 47% in the most recent quarter compared with the year-ago quarter, and we feel that the company's two-year trend of EPS growth should continue. Net income rose 46.8% compared with the year-ago quarter, from $38.4 million to $56.4 million. Revenue increased by 2.9%, compared with the industry's 3.6% average increase. Watson's debt-to-equity ratio of 0.4 is below the industry average, and it has a quick ratio of 1.7. Net operating cash flow increased 3% to $177.4 million.

All ratings changes from April 8 are listed below.

Ticker
Company
Current
Change
Previous
ADGF
Adams Golf
SELL
Downgrade
HOLD
CLMS
Calamos Asset Management
SELL
Downgrade
HOLD
CSU
Capital Senior Living
SELL
Downgrade
HOLD
MOCO
Mocon
BUY
Upgrade
HOLD
ONAV
Omega Navigation Enterprises
HOLD
Upgrade
SELL
TJX
TJX
BUY
Upgrade
HOLD
VFC
VF Corp.
BUY
Upgrade
HOLD
VTNC
Vitran
SELL
Downgrade
HOLD
WPI
Watson Pharmaceuticals
BUY
Upgrade
HOLD

Note: Our quantitative model makes stock recommendations based on GAAP figures that may differ materially from data as reported by the companies themselves. As a result, rating changes are occasionally driven by so-called nonrecurring items. As always, we urge readers to use TSC Ratings' reports in conjunction with additional information to construct their opinions on the value that should be placed on any given stock.

TheStreet.com Ratings, recently cited for Best Stock Selection from October 2007 through February 2009 , is an independent research provider that combines fundamental and technical analysis to offer investors tremendous value in volatile times. To see how your portfolio can use this research, click here now!

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