Zacks Sell List Highlights: Central Garden & Pet, Imation, AMR Corporation, and Siebel Systems.

CHICAGO -- 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 96.9% annually (12.0% vs. 6.1% 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: Central Garden & Pet Company (NASDAQ:CENT) and Imation Corporation (NYSE:IMN). Further they announced #4 Rankings (Sell) on two other widely held stocks: AMR Corporation (NYSE:AMR) and Siebel Systems, Inc. (NASDAQ:SEBL). 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:

Central Garden & Pet Company (NASDAQ:CENT) offers a broadening array of proprietary branded lawn and garden and pet supply products. The Garden Products segment of Central Garden & Pet Company did not meet expectations for June or the third quarter, especially the grass seed operations. The company will report its fiscal third quarter numbers on August 5th, but earlier this month forecasted fully diluted earnings of between 84 cents and 86 cents per share for the period, which was below the consensus. In addition, Central Garden & Pet Company also revised its earnings guidance for the fiscal year to between $1.92 and $1.96 per diluted share, which was also below Wall Street's expectations. Earnings estimates for the year ending September 2004 moved lower by 26 cents, or about -12%, over the past month. Nevertheless, the company's Pet Products segment continues to perform well, and Central Garden & Pet Company said it continues to be optimistic for its overall progress and position in the marketplace. The company should be in a better situation as results in its Garden Products segment improves, but in the meantime investors may want to hold off on a position until its earnings estimates head higher.

Imation Corporation (NYSE:IMN) is a leading developer, manufacturer and supplier of magnetic and optical removable data storage media. Earlier this week, Imation reported second quarter earnings per share, excluding items, which were in-line with the consensus. However, that consensus had been lowered earlier this month, after the company announced that second quarter earnings would come in below its internal expectations and Wall Street's estimates. Lower-than-originally-expected results were attributed to competitive market pricing and softer-than-expected demand for recordable optical media. Earnings estimates for the year ending December 2004 remain below levels from one month ago by 56 cents, or about -24%. However, Imation stated it has aggressively addressed the issues that impacted the quarter, and expects further action to improve its position through the end of the year. The company has a position in some rapidly growing markets, but investors may want to stay patient for now when it comes to taking a position and wait for its earnings estimates to gain more upward traction before making a move.

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:

AMR Corporation (NYSE:AMR) operations fall almost entirely in the airline industry. AMR's principal subsidiary is American Airlines, Inc. American is one of the largest scheduled passenger airlines in the world excluding special items, AMR reported a second quarter loss of (15 cents) per share earlier this week. That loss marked a significant improvement over the year-ago deficit of ($2.26) per share, but was still a wider loss than the consensus. As with its entire industry, AMR had to grapple with a challenging environment, led by very high fuel prices. The company has experienced more downward revisions from analysts than upward revisions of late, and its loss per share estimate for the year ending December 2004 has widened over the past several months. Specifically, it has widened by about 43 cents in the past 30 trading days. But AMR said it ran a much more efficient, more productive and smarter airline than it did in the year-ago quarter, and is making changes to improve its earnings potential on a daily basis. Once the environment in its industry improves, a leader like AMR should be a big beneficiary. At the moment though, the best move may be to stay on the sidelines and keep your eyes open for its earnings estimates to gain more upside momentum.

Siebel Systems, Inc. (NASDAQ:SEBL) is a leading provider of business applications software. Earlier this week, Siebel Systems reported second quarter net income of 2 cents per diluted share on total revenues of $301.1 million, which was in-line with preliminary results from earlier in July. In that announcement, the company stated its expectation for total revenues at about $301 million, which was below Wall Street expectations. The company attributed the results to unexpected delays in purchasing decisions by certain prospects and customers near the end of the quarter. Earnings estimates for the this year, ending December 2004, remain below levels from one month ago by 10 cents, or approximately -32%. Nevertheless, Siebel Systems is a large presence in its field and should be able to fulfill its potential moving forward. At the moment though, investors may want to hold off on allocating funds to their portfolios until analysts give its earnings estimates a lift.

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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 +34.2% compared to the (a)S&P 500 return of only +12.0%. Plus this exclusive stock list has generated total gains of +139.7% total return since 2000 vs. the worst bear market in over 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 96.9% annually (12.0% vs. 6.1% respectively). Thus, the Zacks Rank system can truly be used to effectively manage the trading in your portfolio.

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