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.

The following ratings changes were generated on Tuesday, April 21.

We've upgraded BorgWarner ( BWA), which engages in the manufacture and sale of engineered automotive systems and components primarily for power train applications, from sell to hold. Strengths include the company's solid financial position based on a variety of debt and liquidity measures that we have evaluated. At the same time, however, we also find weaknesses including disappointing return on equity, poor profit margins and weak operating cash flow.

BorgWarner's debt-to-equity ratio of 0.4 is below the industry average, implying successful management of debt levels. It's 0.6 quick ratio suggests a possible problem covering short-term cash needs. Revenue fell 32.1% since the same quarter last year, and EPS decreased. Net income fell from $71.2 million to -$81.4 million. Return on equity also decreased, implying weakness within the corporation. BorgWarner's gross profit margin of 14.1% has decreased from the same quarter last year.

We've upgraded BancorpSouth ( BXS), which operates as a financial holding company for BancorpSouth Bank, from hold to buy. This rating is driven by the company's expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

BancorpSouth's gross profit margin of 72.7% has improved form the year-ago quarter. Revenue fell 13.5% compared with the year-ago quarter, and EPS have also decreased. Return on equity fell, implying a minor weakness in the organization. Net income is down 16.1% compared with the year-ago quarter, dropping from $35.2 million to $29.5 million.

Shares are down 18.2% 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 WMS Industries ( WMS), which engages in the design, manufacture and distribution of gaming machines and video lottery terminals, from hold to buy. This rating is driven by the company's 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. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

EPS have improved 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 48.1%, from $16 million in the year-ago quarter to $23.7 million. Revenue increased 12.1%. WMS has a debt-to-equity ratio of 0.2, though it is higher than the industry average. The 3.4 quick ratio demonstrates the company's ability to cover short-term cash needs. Net operating cash flow increased 70% to $52.3 million compared with the year-ago quarter.

All ratings changes from April 21 are listed below.

Ticker
Company
Current
Change
Previous
BWA
BorgWarner
HOLD
Upgrade
SELL
BXS
BancorpSouth
BUY
Upgrade
HOLD
CKX
CKX Lands
HOLD
Downgrade
BUY
DNBF
DNB Financial
SELL
Downgrade
HOLD
ELST
Electronic Systems Technology
SELL
Downgrade
HOLD
FINL
Finish Line
HOLD
Upgrade
SELL
FXRE
FX Real Estate & Entertainment
SELL
Initiated
GLGI
Greystone Logistics
SELL
Initiated
MDOR
Magnum d'Or Resources
SELL
Initiated
MFLR
Mayflower Bancorp
HOLD
Upgrade
SELL
PWSV
Power-Save Energy
SELL
Downgrade
HOLD
WMS
WMS Industries
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!