Zacks Sell List Highlights: GMX Resources Inc., Progress Energy, LeapFrog Enterprises and Olin Corp.

CHICAGO -- 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): GMX Resources Inc. (Nasdaq: GMXR) and Progress Energy (NYSE: PGN). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: LeapFrog Enterprises Inc. (NYSE: LF) and Olin Corp. (NYSE: OLN). 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 129.7% annually (11.9% vs. 5.2% 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 GMXR and PGN 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:

GMX Resources Inc. (Nasdaq: GMXR) outperformed the previous year's first-quarter earnings per share. However, the 19 cents per share earnings that were reported for its recently completed first quarter missed the consensus estimate by nearly 10%. Analyst have also issued downward revisions of full-year earnings estimates. Current estimates of 82 cents per share are 20 cents below the levels of just one week ago.

Progress Energy (NYSE: PGN) posted first-quarter ongoing earnings of 51 cents per share in early May. The result was approximately 7% below analysts' expectations. The company also reaffirmed its 2006 ongoing core earnings guidance of $2.45 to $2.65 per share, though withheld non-core ongoing earnings guidance. Current full-year consensus estimates have declined to $2.88 per share. One month ago analysts were forecasting $2.95 per share.

Here is a synopsis of why LF and OLN 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:

LeapFrog Enterprises, Inc. (NYSE: LF) released its first-quarter report in early May, noting a loss of 38 cents per share. The loss was wider than the year-prior loss of 32 cents and missed consensus estimate by 52%. Net sales were $66.5 million versus the year-ago result of $71.9 million. During the past two months, analysts have slashed full-year earnings estimates from 41 cents per share to current projections of 26 cents.

Olin Corp. (NYSE: OLN) announced first-quarter earnings of 47 cents per share in late April. The result matched the consensus estimate but decreased from last year's 52 cents. Earnings estimates for the year ending December 2006 have slumped over the past 60 trading days. Current estimates of $1.90 per share are 6%, or 13 cents, below two-months ago levels.

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

Since 1988, the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." A $10,000 investment in the Zacks Rank list made in 1988 would now be worth $1.82 million - equivalent to a 33% annualized return! 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 129.7% annually (+5.2% vs. +11.9%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.

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