In July, the company said second-quarter profit increased 5.3% from a year ago to $30.6 million, while EPS increased 7.1% to 60 cents a share. The company has demonstrated a pattern of positive EPS growth over the past two years and this trend is expected to continue. Cathay General's stock price has declined 20.4% from its price level of one year ago and there appears to be nothing in this company's numbers that would change the one-year trend. Cathay General Bancorp had been rated buy since October 2005. MGIC Investment ( MTG ), a home loan insurer, has been downgraded to sell. The company's weaknesses can be seen in several areas, including its feeble EPS growth, deteriorating net income, unsatisfactory return on equity and generally disappointing historical stock performance. The company recently reported a third-quarter loss of $372.5 million, or $4.60 a share, compared with a profit of $130 million, or $1.55 a share, a year ago.