Zacks Sell List Highlights: Agrium, Pharmaceutical Resources, Delta Air Lines, and DoubleClick.Business Editors CHICAGO--(BUSINESS WIRE)--April 20, 2004 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). Since inception in 1988 the S&P 500 has outperformed the Zacks #5 Ranked Strong Sells by 170.3% annually (12.1% vs. 4.5% respectively). While the rest of Wall Street continued to tout Tout To promote a security in order to attract buyers. tout To foster interest in a particular company or security. For example, a broker might tout a security to a client in the hope that the client will purchase the security. 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: Agrium, Inc. (NYSE NYSE See: New York Stock Exchange :AGU AGU Aoyama Gakuin University, Tokyo, Japan AGU American Geophysical Union AGU Arabian Gulf University (Bahrain) AGU All Grown Up (TV show) AGU Aguascalientes, Aguascalientes, Mexico ) and Pharmaceutical Resources, Inc. (NYSE:PRX PRX Public Radio Exchange PRX Paris, Texas (Airport Code) PRX Private Reed Exchange PRX Fox Pro Compiled Program ). Further they announced #4 Rankings (Sell) on two other widely held stocks: Delta Air Lines, Inc. (NYSE:DAL) and DoubleClick, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :DCLK DCLK Doubleclick Inc. (stock abbreviation, AMEX) DCLK Deputy Clerk DCLK Digital Clock DCLK Double Click ). To see the full Zacks #5 Ranked list of Stocks to Sell Now then visit: http://at.zacks.com/?id=92 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: Agrium, Inc. (NYSE:AGU) is a leading global producer and marketer of fertilizer and a major retail supplier of agricultural products and services in both North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Argentina. Earlier this month, Agrium, which will report its next quarterly results on April 27th, provided an earnings guidance for the first half of 2004 between 45 cents and 55 cents diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of . The company stated that higher than expected North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. natural gas costs, lower international nitrogen pricing and a stronger Canadian dollar Noun 1. Canadian dollar - the basic unit of money in Canada; "the Canadian dollar has the image of loon on one side of the coin" loonie dollar - the basic monetary unit in many countries; equal to 100 cents have impacted some of its upside potential Upside potential The amount by which analysts or investors expect the price of a security may increase. upside potential The potential price or gain that may be expected in a security or in a security average, generally stated as the dollar . The company has experienced a few downward revisions from analysts lately, and earnings estimates for the year ending December 2004 are down 14 cents, or about -11%, from levels one month ago. Nevertheless, this guidance continues a trend in year-over-year improvement experienced in 2003, which demonstrates strong fertilizer fundamentals. Furthermore, North American sales margins are expected to be higher in the first half of 2004 compared to last year. While this all bodes well for the year, investors may want to hold off on a position for the time being and wait for those earnings estimates to gain more upward momentum. Pharmaceutical Resources, Inc. (NYSE:PRX) is a holding company which, through its subsidiary, is in the business of manufacturing and distributing a broad line of generic drugs generic drug, a drug sold or prescribed under the nonproprietary name of its active ingredients or under a generally descriptive name rather than under a brand or trade name. . Over the past seven trading days In Business, the trading day is the time span that a particular stock exchange is open. For example, the New York Stock Exchange is, as of 2006, open from 09:30AM to 4:00PM. Trading days never take place on weekends. , earnings estimates for Pharmaceutical Resources slumped 48 cents, or approximately -12%, for the year ending December 2004. The company will report its first quarter results on April 29th, and earlier this month stated that it expects diluted earnings per share of about 80 cents for that quarter, which was below the consensus at the time. The company said that the performance reflects a shift in product mix since the fourth quarter of 2003, and the delayed introductions of generic versions of Rebetol(R), Glucovance(R), and Catapres TTS (1) See text-to-speech. (2) (Transaction Tracking System) Software that monitors a transaction until completion. In the event of a hardware or software failure, it ensures that the database is brought back to its former state before the attempt to (R). However, that result would mark an increase of almost +20% year-over-year, and the company also announced a definitive agreement to acquire Kali Laboratories, Inc. Pharmaceutical Resources said the acquisition, which is expected to close in the second quarter 2004, is the first step toward significantly expanding the scope of its research and development capabilities, and substantially increasing the size of its product portfolio. The future is yet uncertain and it may be best to watch for the company's earnings estimates to head higher before adding or deepening a position. 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: Delta Air Lines, Inc. (NYSE:DAL) provides air transportation for passengers and freight throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and around the world. Last week, Delta Air Lines reported a first quarter loss per share of ($3.12), which narrowed the year-ago loss but was still steeper than the consensus. The company called the quarter 'disappointing' and said that there are more challenging times ahead. Over the month, analysts have widened their loss estimates on the company for the year ending December 2004 by about (80 cents), including erosion of approximately (26 cents) in the past seven trading days. But Delta Air Lines is well aware of its situation, and said that its urgent task is to achieve a competitive cost structure so that the company can generate a positive cash flow, reduce its debt burden and return to profitability. The company has already made progress in reducing costs through its profit improvement initiatives. Delta Air Lines' moves should help this well-known company get back on the right track, and a general improvement in the industry should help as well. But in the meantime Adv. 1. in the meantime - during the intervening time; "meanwhile I will not think about the problem"; "meantime he was attentive to his other interests"; "in the meantime the police were notified" meantime, meanwhile , the best move may be to stay cautious and patient right now until its earnings estimates head higher. DoubleClick, Inc. (NASDAQ:DCLK) is a provider of technology-driven marketing and advertising solutions to advertisers, advertising agencies, Web publishers and e-commerce merchants worldwide. Last week, DoubleClick posted first quarter GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). earnings per share and revenue that topped year-ago levels, but the company has still experienced some downward revisions from analysts lately, sending earnings estimates for the year ending December 2004 downward by 1-cent, or about -3%, in the past seven trading days. In the quarter, the company reported revenue of about $68 million, which was below what some analysts were expecting. The company also stated that its recent acquisition of SmartPath, Inc. is expected to lower GAAP net income by about $5 million for 2004, mainly because of amortization charges and integration costs. Nevertheless, DoubleClick was very pleased with its quarterly results, and said it enjoyed growth across all of its product groups and expects record profitability in 2004. At present though, investors may want to wait a little longer on allocating funds to their portfolios until analysts give its earnings estimates a lift. 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://at.zacks.com/?id=93 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 inception in 1988 the #1 Ranked stocks have generated an average annual return of +33.7% compared to the (a)S&P 500 return of only +12.1%. Plus this exclusive stock list has generated total gains of +100.3% since January 2000 as the market suffered its worst downturn in 60 years. 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 Strong Sells by 170.3% annually (12.1% vs. 4.5% respectively). Thus, the Zacks Rank system can truly be used to effectively manage the trading in your portfolio. For continuous coverage of Zacks #1 and #5 Ranked stocks, then get your free subscription to "Profit from the Pros" e-mail newsletter where we highlight stocks to buy and sell using our time tested stock evaluation model. http://at.zacks.com/?id=94 The Zacks Rank, and all of its recommendations, is created by Zacks & Co., member NASD NASD See: National Association of Securities Dealers NASD See National Association of Securities Dealers (NASD). . Zacks.com displays the Zacks Rank with permission from Zacks & Co. on its web site for individual investors. About Zacks Zacks.com is a property of Zacks Investment Research Zacks Investment Research A firm that compiles earnings estimates and brokerage firm investment recommendations for thousands of publicly traded firms. , Inc., which was formed in 1978 to compile, analyze, and distribute investment research to both institutional and individual investors. The guiding principle behind our work is the belief that investment experts, such as brokerage analysts and investment newsletter writers, have superior knowledge about how to invest successfully. Our goal is to unlock their profitable insights for our customers. And there is no better way to enjoy this investment success, than with a FREE subscription to "Profit from the Pros" weekly e-mail newsletter. 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These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). , and represents the gross returns before management fees. 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 solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual to buy or sell any security. |
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