Atlantic Coast Airlines Holdings, Unibanco, General Electric and Tellabs Business Editors CHICAGO--(BUSINESS WIRE)--Jan. 20, 2003--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). Note that since the Zacks Ranks inception in 1980, the list of #5 ranked stocks have under-performed the S&P 500 by 89.8%. 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: Atlantic Coast Airlines Holdings, Inc. (NASDAQ:ACAI) and Unibanco-Uniao de Bancos Brasilieros S.A. (NYSE:UBB). Further they announced #4 Rankings (Sell) on two other widely held stocks: General Electric Company (NYSE:GE) and Tellabs, Inc. (NASDAQ:TLAB). To see the full Zacks #5 Ranked list of Stocks to Sell Now then visit: http://stockstosellprbw.zacks.com/ 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: Atlantic Coast Airlines Holdings, Inc. (NASDAQ:ACAI) is the holding company of Atlantic Coast Airlines and Atlantic Coast Jet, Inc., which together are regional airlines, serving destinations in 24 states in the Eastern and Midwestern United States. Although reporting a healthy increase in December 2002 traffic, analysts have kept ACAI's estimates at lowered levels as the airline space continues to grapple with one of its worst downturns in history. In the company's most recent quarterly report from late October, ACAI reported net income, excluding charges, that slightly missed analyst expectations as third quarter results were lower than expected due to several "unexpected items." Estimates for this year have held steady over the past couple of months and are down by about 2 cents from three months back. However, expectations for next year are down by approximately 8 cents during that same three-month timeframe. Still, the company had a +30% increase in revenue passenger miles (RPM) for December, as available seat miles (ASM) improved by +5.8%. Furthermore, for the 12 months ended December 31, RPMs and ASMs grew by 49.3% and +31.9% respectively. But analysts will most likely not add much depth to ACAI's earnings estimates until airlines in general show some strength, and that will take a while longer. In the meantime, investors may want to consider refraining from adding or strengthening a position in ACAI and wait for a more cooperative environment. The company will report its year-end 2002 results on January 29. Unibanco-Uniao de Bancos Brasilieros S.A. (NYSE:UBB) is a Brazilian financial institution offering a wide range of financial products and services, including retail and wholesale banking, credit cards and insurance. Estimates for the company are significantly below levels from three months ago, as UBB faced a very difficult 2002. According to the company's third quarter release in November, the Brazilian economy was impacted by the combination of a slow-down and an increased aversion to risk by the international markets. The intensity of the Brazilian elections also added to the problems. Such factors put heavy pressure on UBB's earnings estimates. The past three months have seen estimates for this year decline by about 32 cents, while expectations for next year have eroded by approximately 22 cents. However, given the slide that it has taken, UBB could be in a good position for a strong recovery, which would bode well for the company and its shareholders. But, now is a good time to play it safe, and investors should consider holding off a bit longer on a position in UBB until analysts begin to jump back on board this financial institution. 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: General Electric Company (NYSE:GE) is one of the largest and most diversified industrial corporations in the world. Due to higher losses at the Employers Reinsurance Corporation, GE reported a -21% slide in fourth quarter earnings, bringing the total to 31 cents from last year's 39 cents. However, revenue in the quarter improved by +4% to $35.4 billion. Furthermore, the company sees challenges in the future especially for its Power Systems segment. Over the past three months, estimates for this year and next have slumped by approximately 13 cents and 10 cents respectively. Despite the lower profit reading, GE is one of the largest and most recognizable companies in the world, and it still delivered solid results during this soft economy. It also achieved a number of strategic objectives that the company says positions itself for long-term growth. But it's probably best at this moment to wait a little longer on a position in GE for its earnings estimates to start moving in the right direction. Tellabs, Inc. (NASDAQ:TLAB) helps the world's leading communications service providers build tomorrow's converged networks of voice, data and video. In the company's third quarter report from mid-October, TLAB reported a pro forma net loss, excluding charges, of 4 cents per share, which surpassed expectations by 2 cents. However, the result missed the year-ago total of a 1-cent profit while sales slumped to $288 million from last year's $448 million. Analysts are anxious to get the fourth quarter and year-end numbers, which will be released on January 22. Estimates for this year and next have remained steady over the past two months, but are down slightly over the past three months. Analysts still expect losses for this year and next, with only a 1-cent improvement for next year. Nevertheless, TLAB continues to release new and innovative products as it takes several actions to move back to profitability, including investing in new and existing products, improving customer relationships, and strengthening its balance sheet, among others. The company expects to be ready to pounce once the market recovers. But, no one seems to know when that will occur. Therefore, it might be best to hold off on a position for the time being and wait to see if analysts improve the company's earnings estimates after its next report and beyond. 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://freezrguidebw.zacks.com/ About the Zacks Rank For over 20 years the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." This exclusive system clearly shows investors which stocks have the best potential to outperform the market...or underperform. Since inception in 1980 #1 Ranked stocks (Strong Buys) have generated an average annual return of +34.0% compared to the (a)S&P 500 return of only +14.7%. Plus this exclusive stock list gained +18.7 in 2001 and +16.2% in 2000; a substantial return compared to the large losses suffered by most investors during that time frame. Just as powerful to knowing what to buy is what to sell. And since 1980 the Zacks #5 Ranked Strong Sells have under performed the S&P 500 by 89.8% annually. This is a healthy change from traditional Wall Street Brokerage firms who only give stocks Sell ratings less than 1% of the time. 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://zacksrankprbw.zacks.com/ The Zacks Rank, and all of its recommendations, is created by Zacks & Co., member 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, Inc., which was formed in 1981 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. 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Zacks Issues Sell Recommendations On the Following 4 Stocks:
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