Zacks Sell List Highlights Lexmark International, Nu Skin Enterprises, The Medicines Company, and ATI Technologies

Zacks.com releases details on a group of stocks that are currently members of the exclusive Zacks #5 Rank List - Stocks to Sell Now. These stocks are currently rated as a Zacks Rank #5 (Strong Sell): Lexmark International, Inc. (NYSE:LXK - News) and Nu Skin Enterprises (NYSE:NUS - News). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: The Medicines Company (NASDAQ:MDCO - News) and ATI Technologies, Inc. (NASDAQ:ATYT - News). To see the full Zacks #5 Rank List - Stocks to Sell Now visit: http://at.zacks.com/?id=92


Since inception in 1988, the S&P 500 has outperformed the Zacks #5 Rank List -- Stocks to Sell Now by 143.5% annually (12% vs. 4.9% respectively). While the rest of Wall Street continued to tout stocks during the market declines of the last few years, Zacks told investors which stocks to sell or avoid.

Here is a synopsis of why LXK and NUS have a Zacks Rank of 5 (Strong Sell) and should most likely be sold or avoided for the next one to three months. Note that a #5 Strong Sell rating is applied to 5% of all the Zacks ranked stocks:

Lexmark International, Inc. (NYSE:LXK - News) warned last week that profits for the second-half of the year would be well below analysts' forecasts. Citing a reduction in channel inventories, pricing pressures, and weakened customer demand, LXK cut its third-quarter guidance from $0.95-$1.05 per share to 40-50 cents per share. The company intends to issue revised fourth quarter guidance on October 25. Nine of the 13 covering analysts quickly cut their full year forecasts. The new full year consensus forecast calls for profits of $3.43 per share versus last week's forecast for $4.24 per share.

Nu Skin Enterprises (NYSE:NUS - News) said that weaker-than-expected results in Mainland China, Japan, and the U.S. would result in third-quarter revenues of approximately $290 million instead of the $298-$303 million it had previously forecast. In addition, the company reduced its fourth-quarter guidance to revenues of $300-$306 million from $320-$325 million. All three of the covering analysts revised their predictions for full year earnings following the warning. The new consensus estimate, for full year earnings of $1.09 per share, is 11 cents below the level of a week ago.

Here is a synopsis of why MDCO and ATYT have a Zacks Rank of 4 (Sell) and should also most likely be sold or avoided for the next one to three months. Note that a #4 Sell rating is applied to 15% of all the stocks ranked by Zacks:

The Medicines Company (NASDAQ:MDCO - News) recently announced that it anticipates full year revenues of approximately $150 million and a loss of $10 million. Comparatively, the company had previously guided for revenues of $195-$204 million and earnings of $24-$31 million. MDCO blamed weak demand and the restructuring of its wholesaler arrangements for the revised guidance. Four of the five covering analysts cut their forecasts in response, causing the consensus estimate to fall by 48 cents to a projected full year loss of 11 cents per share.

ATI Technologies, Inc. (NASDAQ:ATYT - News) recently posted a fiscal fourth-quarter loss of 12 cents per share, which underperformed the year prior result. Revenues fell from the previous quarter's total. Current fiscal year earnings estimates of 42 cents were lifted from last week's 39 cents. However, estimates for the year ending August 2006 are still below two months ago levels of 70 cents per share.

Truly taking advantage of the Zacks Rank requires the understanding of how it works. The free special report; "Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions" is available to provide this insightful background. Download a free copy now to prosper in the years to come at http://at.zacks.com/?id=93

About the Zacks Rank

For over 17 years, the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since inception in 1988, #1 Rank stocks have generated an average annual return of +33%. During the 2000-2002 bear market, Zacks #1 Rank stocks gained 43.8%, while the S&P 500 tumbled 37.6%. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). Since 1988, Zacks Rank #5 stocks have underperformed the S&P 500 by 143.5% annually (+4.9% vs. +12%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.

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Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.



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