Zacks Issues Sell Recommendations on the Following 4 Stocks: IMC Global, SonicWALL, Ingram Micro, and Manpower.

Business Editors

CHICAGO--(BUSINESS WIRE)--May 7, 2003

Zacks.com releases details on a group of stocks that are part of their exclusive list of Stocks to Sell Now. These stocks are currently rated as a Zacks Rank #5 (Strong Sell). Note that since 1988 the S&P 500 has outperformed the Zacks #5 Ranked stocks by 166.7% annually (11.3% vs. 4.2% respectively). While the rest of Wall Street continued to tout stocks during the market declines of the last few years, we were telling our customers which stocks to sell in order to save themselves the misery of unrelenting losses. Among the #5 ranked stocks today we highlight the following companies: IMC Global Inc. (NYSE:IGL) and SonicWALL, Inc. (NASDAQ:SNWL). Further they announced #4 Rankings (Sell) on two other widely held stocks: Ingram Micro Inc. (NYSE:IM) and Manpower Inc. (NYSE:MAN). To see the full Zacks #5 Ranked list of Stocks to Sell Now then visit: http://stockstosellprbw.zacks.com/

Here is a synopsis of why these stocks have a Zacks Rank of 5 (Strong Sell) and should most likely be sold or avoided for the next 1 to 3 months. Note that a #5/Strong Sell rating is applied to 5% of all the stocks we rank:

IMC Global Inc. (NYSE:IGL) is one of the world's leading producers and distributors of crop nutrients to the international agricultural community and one of the foremost manufacturers and distributors of animal feed ingredients to the worldwide industry. For the first quarter 2003, IGL reported a loss compared to a year-ago profit, as the company's results were impacted by greatly increased ammonia, natural gas and sulphur raw material costs, higher concentrate plant operating costs, and a rock mine shutdown. The loss, before the cumulative effect of a change in accounting principle, was 28 cents per diluted share. Excluding the non-cash impact of the strong Canadian dollar, the loss was 15 cents. The company's earnings estimates for both this year and next remain at lowered levels from months ago. However, despite the challenging start to the year, IGL is encouraged by the rapid gains in DAP pricing in the quarter, and net sales advanced +11% to $552.1 million due to higher phosphate and potash shipments, and increased phosphate prices. A relaxation of raw material costs should go a far way in improving the company's results. Therefore, it may serve investors best to watch for increased earnings estimates before adding or deepening a position in IGL.

SonicWALL, Inc. (NASDAQ:SNWL) designs, develops, manufactures and sells Internet security infrastructure products designed to provide secure Internet access to broadband customers and process secure transactions for enterprises and service providers. The company reported a first quarter 2003 pro forma net loss of 3 cents per share, which missed Wall Street's break-even expectation and the year-ago net income of 2 cents per diluted share. Furthermore, revenues for the quarter dropped by -28% to $20.3 million from $28.1 million last year. Sequentially, revenues declined by -12%. Analysts were expecting a profit about one month ago, but now see a loss for this year, while next year's estimates have moved lower by about 3 cents in that timeframe. Nevertheless, SNWL is a leading presence in its industry, and says its first priority is aligning its resources to drive customer satisfaction, as it focuses on sustaining its relationships and improving operating results through development of innovative product and service offerings. Such initiatives should help the company moving forward. For the moment however, investors may want to think about waiting a bit longer on a SNWL position until its earnings estimates show some buoyancy.

Below is a synopsis of why these two stocks have a Zacks Rank of 4 (Sell) and should also most likely be sold or avoided for the next 1 to 3 months. Note that a #4/Sell rating is applied to 15% of all the stocks we rank:

Ingram Micro Inc. (NYSE:IM) is one of the leading distributors of information technology products and services worldwide. Although first quarter net income marked a solid improvement on last year, IM's earnings estimates for this year and next have declined by about 13 cents and 14 cents respectively in the last seven trading days. Influenced by softer demand in North America, IM issued a second quarter sales and net income forecast that was below the consensus at the time. The company expects sales between $4.9 billion and $5.1 billion with net income, excluding any major-program costs and other special items, of 9 cents to 12 cents per diluted share. Furthermore, sales in the first quarter declined by -2.5% to $5.47 billion. However, non-GAAP net income, which excludes major-program costs, came in at 15 cents per diluted share in the quarter, which was more than enough to surpass last year. IM said it continues to navigate through a tough demand environment with skill and leadership and plans to continue making intelligent decisions to combat a sluggish terrain. IM's future should certainly be better under improved conditions, but for the time being investors may want to hold off on a position in the company until its earnings estimates get back on the right track.

Manpower Inc. (NYSE:MAN) is a leading non-governmental employment services organization. In mid-April, MAN said it is entering into the second quarter with caution and forecasted earnings per share in the range of 31 cents to 35 cents, which includes an estimated favorable currency impact of 6 cents. That result was below what the consensus was expecting at the time. The company said that intra-quarter trends, along with figures from the first few weeks in April, indicated that demand for its customers' products and services stalled. Over the past month, analysts have pulled back on the company's earnings estimates by approximately 17 cents for both this year and next. However, its first quarter turned out to be solid, with net income more than doubling to 19 cents per diluted share and revenues advancing by +17%. If the company turns out to be too cautious with its second quarter forecast, then another solid quarter may convince analysts to boost the company's earnings estimates. But for the moment, it is probably best to play it safe and wait for its estimates to gain some upward mobility before adding or deepening a MAN position.

To truly take advantage of the Zacks Rank, you need to first understand how it works. That's why we created the free special report; "Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions." Download your free copy now to prosper in the years to come. http://freezrguidebw.zacks.com/

About the Zacks Rank

For over 15 years the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since 1988 the #1 Ranked stocks have generated an average annual return of +33.6% compared to the (a)S&P 500 return of only +11.3%. Plus this exclusive stock list has generated average gains of +13.3% during the last 3 years; a substantial return compared to the large losses suffered by most investors during that time frame. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). And since 1988 the S&P 500 has outperformed the Zacks #5 Ranked stocks by 166.7% annually (11.3% vs. 4.2% respectively). This is a healthy change from traditional Wall Street Brokerage firms who rarely give stocks Sell ratings even as the share price and earnings forecast tumble. Thus, the Zacks Rank system can truly be used to effectively manage the trading in your portfolio.

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