The numbers: First-quarter revenue increased 12% to $4.4 million as net income rose to $300,000 and earnings per share increased to 1 cent from a net loss in the year-ago quarter. Operating margin increased to 0.6% from -6.2% and its net margin inched past breakeven. The company has a strong financial position, evident in its $7 million cash balance, quick ratio of 1.3 and zero debt.

The stock: SmartPros has gained 72% this year, outperforming major U.S. indices. The stock trades at a low price to earnings ratio of 11 and does not pay dividends.

The model upgraded Targa Resources Partners ( NGLS) to "buy." The company gathers, processes and sells natural gas.

The numbers: First-quarter revenue plunged 53% to $239 million as the company swung to a net loss of $2.1 million from a net profit of $25 million in last year's first quarter. Operating margin dropped from 6.6% to 3.1% and net margin dipped into negative territory. But the company has a strong financial position, having nearly tripled its cash reserves to $62 million since the year-ago quarter. A debt-to-equity ratio of 0.9 is acceptable, but not ideal.

The stock: Targa is up 86% in 2009, outperforming all major U.S. indices. The stock trades at a fair price-to-earnings ratio of 12 and offers a 14% cash distribution yield. Cash distributions are taxed differently than dividends.

The model downgraded W.P. Carey ( WPC) to "hold." The company manages investments and real estate funds, and provides long-term lease financing.

The numbers: First-quarter revenue increased 8.5% to $62 million as net income climbed 3.5% to $18 million and earnings per share inched up 2.3% to 44 cents. Operating margin increased from 37% to 38%, but net margin dropped from 30% to 29%. The company has a low debt-to-equity ratio of 0.56 and $22 million of cash, indicating an adequate liquidity position.

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