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Zacks Sell List Highlights: Tech Data, Multi-Fineline, Dollar General and Pep Boys.


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): Tech Data Corp. (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
: TECD TECD Training Equipment Change Directive ) and Multi-Fineline Inc. (NASDAQ: MFLX). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Dollar General Corp. (NYSE NYSE

See: New York Stock Exchange
: DG) and Pep Boys (NYSE: PBY PBY US Navy medium to heavy twin amphibious aircraft used for maritime patrol, water bomber, and search and rescue ). 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 TECD and MFLX 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 stocks in the Zacks Rank universe:

Tech Data Corp. (NASDAQ: TECD) has seen this year's earnings estimates drop 66 cents per share Cents per share

The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned.
 over the past month. Next year's estimates have dropped 32 cents per share. The company warned in early August it will post lower than expected second-quarter results due to a surprise drop in overseas sales. Analysts now expect six cents per share for the second quarter, down from 33 cents a month ago.

Multi-Fineline Inc. (NASDAQ: MFLX) has experienced a drop in analyst estimates. Earnings estimates for its fiscal fourth-quarter stand at 30 cents per share, down 13 cents from 30 days ago. The company warned for the just-completed third quarter, citing an unexpected increase in the cost of goods sold Cost of goods sold

The total cost of buying raw materials, and paying for all the factors that go into producing finished goods.


cost of goods sold 
. Consequently, this year's estimates have dropped 18 cents to $1.89 per share over the past 30 days.

Here is a synopsis of why DG and PBY 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:

Dollar General Corp. (NYSE: DG) has been the target of increasing bearishness bear·ish  
adj.
1. Clumsy, boorish, and surly.

2.
a. Causing, expecting, or characterized by falling stock-market prices.

b.
 by analysts. Over the past month, second-quarter estimates have dropped a penny and should drop more as the company issued a warning. Dollar General lowered its guidance for second-quarter earnings to 14 cents to 15 cents a share, down from its previous forecast of 18 cents to 22 cents a share. The company cited rising gasoline prices in revising its outlook, saying shoppers are cutting back on higher-ticket items such as clothing and home decor.

Pep Boys (NYSE: PBY) has seen its earnings estimates drop for this year. The current 2006 consensus estimate of a loss of 12 cents per share is 15 cents below the forecast of a month ago. Same-store sales Same-store sales is a business term which refers to the revenue generated by one of a retail chain's specific outlets during a certain period of time (often a fiscal quarter or a particular shopping season), compared to an identical period in the past, usually in the previous year.  rose a tepid tep·id  
adj.
1. Moderately warm; lukewarm.

2. Lacking in emotional warmth or enthusiasm; halfhearted: "the tepid conservatism of the fifties" Irving Howe.
 0.4 percent during the last quarter. Next year's estimates dropped 18 cents to 10 cents per share over the past week.

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 $1.8 million - equivalent to a 32.4% annualized annualized

Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared.
 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 145.8% annually (+4.7% vs. +11.6%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.

Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of Zacks #1 Rank stocks and highlights those stocks poised to outperform the market. Subscribe to Verb 1. subscribe to - receive or obtain regularly; "We take the Times every day"
subscribe, take

buy, purchase - obtain by purchase; acquire by means of a financial transaction; "The family purchased a new car"; "The conglomerate acquired a new company";
 this free newsletter today by visiting http://at.zacks.com/?id=94

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 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=95

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

(a)The S&P 500 Index ("S&P 500") is a well-known, unmanaged index of the prices of 500 large-company common stocks selected by Standard & Poor's. The S&P 500 includes the reinvestment Reinvestment

Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash.

1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares.
 of all dividends, no transaction costs Transaction Costs

Costs incurred when buying or selling securities. 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 to buy or sell any security.
COPYRIGHT 2006 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
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Date:Aug 22, 2006
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