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Zacks Sell List Highlights: Federated Investors, Kopin Corporation, Lexar Media, and AT&T

CHICAGO--(BUSINESS WIRE--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 167.4% annually (12.3% vs. 4.6% 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: Federated Investors, Inc. (NYSE:FII) and Kopin Corporation (NASDAQ: KOPN). Further they announced #4 Rankings (Sell) on two other widely held stocks: Lexar Media (NASDAQ:LEXR) and AT&T (NYSE:T). 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:
Federated Investors, Inc. (NYSE:FII) is a provider of investment management and related financial services. Federated Investors recently reported first quarter diluted earnings of 46 cents per share, which surpassed the year-ago performance by 3 cents but fell short of the consensus by about -6%. The company stated that the quarter's earnings include expenses of $4.3 million associated with various legal, regulatory and compliance matters. Over the past seven trading days, earnings estimates for the year ending December 2004 moved lower by 10 cents, or approximately -5%. However, Federated Investors stated that the mix and balance of its extensive product line continues to produce earnings growth across economic cycles. The company also reported that revenue advanced +17%, while it also boosted its quarterly dividend. But for right now, investors may want to hold off on opening or deepening a position in the company until analysts give its earnings estimates a lift.

Kopin Corporation (NASDAQ:KOPN) is pioneering the use of nanotechnology to manufacture nanosemiconcuctor products that make mobile electronic devices small, fast, bright, lightweight and power efficient. For its first quarter, Kopin reported a net loss of (5 cents) per share, which was a steeper loss than a year ago. It was also a steeper loss than the consensus was expecting. The company said the net loss mainly reflects lower initial yields associated with the transition from the company's legacy monochrome microdisplays to new color filter

CyberDisplay products and additional marketing and technical support associated with increased color display activities. The company has experienced several downward revisions from analysts of late for the year ending December 2004, and earnings estimates for the period have moved from a profit to a loss over the past month. However, revenue grew by +24% year-over-year in the quarter, and customer uptake of its new color filter display occurred faster than expected. The company's innovative products could mean big things for the future, but investors may want to sit tight for now and wait for its earnings estimates to gain more upward momentum 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:

Lexar Media (NASDAQ:LEXR) is the premier technology provider of high-performance digital film and connectivity solutions for the digital photography market. Through a broad range of digital film options, the company addresses the needs of professional, commercial and amateur photographers. Lexar Media reported some good numbers earlier this month for its first quarter, including net income per diluted share of 11 cents that beat the year-ago total of 6 cents on revenues that jumped +202% year-over-year. However, earnings estimates for the year ending December 2004 are down 8 cents, or about -13% from levels achieved one month ago. Lexar Media said that second quarter price declines will be sizeable, and forecast breakeven to slightly positive net income, which was below the consensus at the time. Nevertheless, despite the difficulty in forecasting the second quarter, Lexar Media is optimistic about the second half of the year, and its revenue guidance for the second quarter was better than analyst expectations. At the moment though, investors may want to wait a little bit longer on taking a position until its earnings estimates head higher.

AT&T (NYSE:T) is among the world's communications leaders, providing voice, data and video communications services to large and small businesses, consumers and government entities. AT&T must deal with a difficult industry environment that has been impacted by oversupply and intense pricing pressure. For its first quarter, the company recently reported earnings per diluted share that fell short of year-ago levels. The company also reported consolidated revenue that declined -11.1% to $8 billion. The company has experienced some recent downward revisions from analysts, and its earnings estimates for the year ending December 2004 are down 14 cents, or about -10%, from three months ago. That includes a slump of 5 cents, or approximately -4%, over the past seven trading days. But AT&T is the most well-known company in its space, and said it remains focused on leading the technology transformation in telecom, diversifying its product offerings to include new offers such as VoIP and wireless, improving its cost structure, and building on its financial strength. For now, it may be best to stay on the sidelines a little longer and watch for its earnings estimates to move higher.

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 +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 167.4% annually (12.3% vs. 4.6% 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

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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
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 

 

 

 

 

 



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