TheStreet Ratings Top 10 Rating Changes

NEW YORK ( TheStreet Ratings) -- Every trading day TheStreet Ratings' stock model reviews the investment ratings on around 4,300 U.S. traded stocks for potential upgrades or downgrades based on the latest available financial results and trading activity.

TheStreet Ratings released rating changes on 51 U.S. common stocks for week ending March 15, 2013. 24 stocks were upgraded and 27 stocks were downgraded by our stock model.

Rating Change #10

America Movil S.A.B. De C.V. ( AMOV) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and a generally disappointing performance in the stock itself.

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Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 0.1%. Since the same quarter one year prior, revenues rose by 18.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Wireless Telecommunication Services industry and the overall market, AMERICA MOVIL SA DE CV's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for AMERICA MOVIL SA DE CV is rather high; currently it is at 54.30%. Regardless of AMOV's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 7.42% trails the industry average.
  • AMOV has underperformed the S&P 500 Index, declining 11.28% from its price level of one year ago. 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.
  • The debt-to-equity ratio of 1.34 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, AMOV has a quick ratio of 0.66, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
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America Movil, S.A.B. de C.V. provides telecommunications services primarily in the United States, Latin America, and the Caribbean. The company offers mobile and fixed voice services, including airtime, local, long-distance, public telephony, and network interconnection services. The company has a P/E ratio of 17.9, above the S&P 500 P/E ratio of 17.7. America Movil S.A.B. de C.V has a market cap of $81.46 billion and is part of the technology sector and telecommunications industry. Shares are down 7.5% year to date as of the close of trading on Tuesday.

You can view the full America Movil S.A.B. de C.V Ratings Report or get investment ideas from our investment research center.

Rating Change #9

Carnival Corporation ( CCL) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

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Highlights from the ratings report include:
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The gross profit margin for CARNIVAL CORP/PLC (USA) is currently lower than what is desirable, coming in at 28.70%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.59% significantly trails the industry average.
  • Net operating cash flow has decreased to $523.00 million or 30.26% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
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Carnival Corporation operates as a cruise and vacation company worldwide. The company operates in two segments, North America; and Europe, Australia, and Asia. The company has a P/E ratio of 21.3, above the S&P 500 P/E ratio of 17.7. Carnival has a market cap of $21.11 billion and is part of the services sector and leisure industry. Shares are down 3.9% year to date as of the close of trading on Wednesday.

You can view the full Carnival Ratings Report or get investment ideas from our investment research center.

Rating Change #8

Sprott Resource Lending Corp ( SILU) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and compelling growth in net income. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

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Highlights from the ratings report include:
  • SILU's very impressive revenue growth greatly exceeded the industry average of 6.9%. Since the same quarter one year prior, revenues leaped by 162.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • SILU has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Diversified Financial Services industry and the overall market, SPROTT RESOURCE LENDING CORP's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • This stock's share value has moved by only 11.77% over the past year. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
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Sprott Resource Lending Corp., a natural resource lender, provides bridge and mezzanine financing to precious and base metal mining, exploration, and development companies, as well as to oil and gas companies and other resource related businesses worldwide. Sprott Resource Lending has a market cap of $204.3 million and is part of the financial sector and real estate industry. Shares are down 10.9% year to date as of the close of trading on Wednesday.

You can view the full Sprott Resource Lending Ratings Report or get investment ideas from our investment research center.

Rating Change #7

PharmAthene Inc ( PIP) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and disappointing return on equity.

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Highlights from the ratings report include:
  • PHARMATHENE INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, PHARMATHENE INC reported poor results of -$0.10 versus -$0.07 in the prior year. For the next year, the market is expecting a contraction of 240.0% in earnings (-$0.34 versus -$0.10).
  • 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 Biotechnology industry. The net income has significantly decreased by 269.6% when compared to the same quarter one year ago, falling from $0.75 million to -$1.27 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Biotechnology industry and the overall market, PHARMATHENE INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • PIP, with its decline in revenue, underperformed when compared the industry average of 6.8%. Since the same quarter one year prior, revenues slightly dropped by 3.6%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is higher, and it has outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
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PharmAthene, Inc., a biodefense company, engages in the development and commercialization of medical countermeasures against biological and chemical threats in the United States. PharmAthene has a market cap of $95.8 million and is part of the health care sector and drugs industry. Shares are up 76.8% year to date as of the close of trading on Thursday.

You can view the full PharmAthene Ratings Report or get investment ideas from our investment research center.

Rating Change #6

Majesco Entertainment Company ( COOL) has been downgraded by TheStreet Ratings from hold to sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Highlights from the ratings report include:
  • MAJESCO ENTERTAINMENT CO has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, MAJESCO ENTERTAINMENT CO reported lower earnings of $0.11 versus $0.18 in the prior year. For the next year, the market is expecting a contraction of 190.9% in earnings (-$0.10 versus $0.11).
  • 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 Software industry. The net income has significantly decreased by 127.7% when compared to the same quarter one year ago, falling from $7.73 million to -$2.14 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Software industry and the overall market, MAJESCO ENTERTAINMENT CO's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for MAJESCO ENTERTAINMENT CO is currently lower than what is desirable, coming in at 30.50%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -9.12% is significantly below that of the industry average.
  • Net operating cash flow has declined marginally to $8.79 million or 6.46% when compared to the same quarter last year. Despite a decrease in cash flow MAJESCO ENTERTAINMENT CO is still fairing well by exceeding its industry average cash flow growth rate of -25.51%.
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Majesco Entertainment Company provides video game products primarily for family oriented, casual-game consumers worldwide. Majesco Entertainment has a market cap of $25.5 million and is part of the technology sector and computer software & services industry. Shares are down 44.3% year to date as of the close of trading on Friday.

You can view the full Majesco Entertainment Ratings Report or get investment ideas from our investment research center.

Rating Change #5

InterOil Corporation ( IOC) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 3.0%. Since the same quarter one year prior, revenues rose by 16.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 126.82% and other important driving factors, this stock has surged by 29.92% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • IOC's debt-to-equity ratio is very low at 0.26 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.78 is somewhat weak and could be cause for future problems.
  • The gross profit margin for INTEROIL CORP is currently extremely low, coming in at 11.70%. Regardless of IOC's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 1.64% trails the industry average.
  • Net operating cash flow has decreased to $29.60 million or 40.14% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
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InterOil Corporation operates as an integrated oil and gas company in Papua New Guinea. The company engages in the exploration, appraisal, and development of crude oil and natural gas structures. The company has a P/E ratio of 2589.3, above the S&P 500 P/E ratio of 17.7. InterOil has a market cap of $3.78 billion and is part of the basic materials sector and energy industry. Shares are up 38.5% year to date as of the close of trading on Tuesday.

You can view the full InterOil Ratings Report or get investment ideas from our investment research center.

Rating Change #4

Sensata Technologies Holding N.V. ( ST) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, notable return on equity, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Highlights from the ratings report include:
  • SENSATA TECHNOLOGIES HLDG NV reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SENSATA TECHNOLOGIES HLDG NV increased its bottom line by earning $0.97 versus $0.02 in the prior year. This year, the market expects an improvement in earnings ($2.10 versus $0.97).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electrical Equipment industry. The net income increased by 191.0% when compared to the same quarter one year prior, rising from $24.38 million to $70.94 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Electrical Equipment industry and the overall market on the basis of return on equity, SENSATA TECHNOLOGIES HLDG NV has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • Net operating cash flow has increased to $112.66 million or 34.89% when compared to the same quarter last year. Despite an increase in cash flow, SENSATA TECHNOLOGIES HLDG NV's cash flow growth rate is still lower than the industry average growth rate of 46.41%.
  • 36.30% is the gross profit margin for SENSATA TECHNOLOGIES HLDG NV which we consider to be strong. Regardless of ST's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ST's net profit margin of 15.92% compares favorably to the industry average.
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Sensata Technologies Holding N.V, through its subsidiaries, engages in the development, manufacture, and sale of sensors and controls primarily in the Americas, the Asia Pacific, and Europe. The company operates in two segments, Sensors and Controls. The company has a P/E ratio of 33.2, above the S&P 500 P/E ratio of 17.7. Sensata Technologies Holding N.V has a market cap of $5.79 billion and is part of the technology sector and electronics industry. Shares are up 1.3% year to date as of the close of trading on Tuesday.

You can view the full Sensata Technologies Holding N.V Ratings Report or get investment ideas from our investment research center.

Rating Change #3

New Gold Inc ( NGD) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in net income and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 6.5%. Since the same quarter one year prior, revenues rose by 41.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.32, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 4.19, which clearly demonstrates the ability to cover short-term cash needs.
  • NEW GOLD INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, NEW GOLD INC increased its bottom line by earning $0.41 versus $0.38 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Metals & Mining industry. The net income increased by 254.0% when compared to the same quarter one year prior, rising from $35.00 million to $123.90 million.
  • The gross profit margin for NEW GOLD INC is rather high; currently it is at 58.10%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 49.38% significantly outperformed against the industry average.
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New Gold Inc., a gold mining company, engages in the acquisition, exploration, extraction, processing, and reclamation of mineral properties. It primarily explore for gold, silver, and copper deposits. The company has a P/E ratio of 22.6, above the S&P 500 P/E ratio of 17.7. New has a market cap of $4.51 billion and is part of the basic materials sector and metals & mining industry. Shares are down 14.1% year to date as of the close of trading on Wednesday.

You can view the full New Ratings Report or get investment ideas from our investment research center.

Rating Change #2

Wendy's Co ( WEN) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Highlights from the ratings report include:
  • WEN's revenue growth has slightly outpaced the industry average of 2.7%. Since the same quarter one year prior, revenues slightly increased by 2.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 562.3% when compared to the same quarter one year prior, rising from $3.98 million to $26.39 million.
  • Net operating cash flow has slightly increased to $65.78 million or 1.81% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -8.23%.
  • WEN's debt-to-equity ratio of 0.73 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that WEN's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.79 is high and demonstrates strong liquidity.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
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The Wendy's Company, through its subsidiaries, operates and franchises Wendy's quick service restaurants. The company engages in operating, developing, and franchising a system of distinctive quick-service restaurants in North America and internationally. The company has a P/E ratio of 272.5, above the S&P 500 P/E ratio of 17.7. Wendy's has a market cap of $2.14 billion and is part of the services sector and leisure industry. Shares are up 16.8% year to date as of the close of trading on Thursday.

You can view the full Wendy's Ratings Report or get investment ideas from our investment research center.

Rating Change #1

RELM Wireless Corporation ( RWC) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Highlights from the ratings report include:
  • RWC's revenue growth has slightly outpaced the industry average of 13.9%. Since the same quarter one year prior, revenues rose by 16.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • RWC's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, RWC has a quick ratio of 2.09, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Compared to its closing price of one year ago, RWC's share price has jumped by 74.78%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, RWC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Net operating cash flow has significantly increased by 86.20% to $2.20 million when compared to the same quarter last year. In addition, RELM WIRELESS CORP has also vastly surpassed the industry average cash flow growth rate of 14.03%.
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RELM Wireless Corporation engages in the design, manufacture, and marketing of wireless communications products in the United States and internationally. Its products include two-way land mobile radios, repeaters, base stations, and related components and subsystems. The company has a P/E ratio of 13.8, below the S&P 500 P/E ratio of 17.7. RELM Wireless has a market cap of $28 million and is part of the technology sector and telecommunications industry. Shares are up 19.6% year to date as of the close of trading on Friday.

You can view the full RELM Wireless Ratings Report or get investment ideas from our investment research center.

-- Reported by Kevin Baker in Palm Beach Gardens, Fla.

For additional Investment Research check out our Ratings Research Center.

For all other upgrades and downgrades made by TheStreet Ratings Model today check out our upgrades and downgrades list.

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Kevin Baker became the senior financial analyst for TheStreet Ratings upon the August 2006 acquisition of Weiss Ratings by TheStreet.com, covering equity and mutual fund ratings. He joined the Weiss Group in 1997 as a banking and brokerage analyst. In 1999, he created the Weiss Group's first ratings to gauge the level of risk in U.S. equities. Baker received a B.S. degree in management from Rensselaer Polytechnic Institute and an M.B.A. with a finance specialization from Nova Southeastern University.

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