UPDATE: Sterne Agee Upgrades K-Swiss to Neutral

Sterne Agee raises its rating on K-Swiss KSWS as product improvements and cost controls may stem the company's share decline. Sterne Agee notes, "At current price levels, we don't see many catalysts for further meaningful share price decline. However, do not foresee a rapid turnaround for the company given the loss in revenue base and shelf space over the past 5 years. ...We believe cutting SG&A and managing inventory growth should help the company's financial position. In addition, the company is negotiating an asset-based line of credit to ensure liquidity through 2012. The company ended 3Q11 with net cash/share of $1.87 vs. 3Q10 at $3.98." KSWS closed at $3.68 a share on Friday.