Zacks Sell List Highlights Blockbuster, Hutchinson Technology,

AMR Corporation and Intersil 
Business Editors
CHICAGO--(BUSINESS WIRE)--Sept. 23, 2004
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
141.8% annually (11.7% vs. 4.5% 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 or
avoid. Among the #5 ranked stocks today we highlight the following
companies: Blockbuster, Inc. (NYSE:BBI) and Hutchinson Technology,
Inc. (NASDAQ:HTCH). Further they announced #4 Rankings (Sell) on two
other widely held stocks: AMR Corporation (NYSE:AMR) and Intersil
Corporation (Nasdaq:ISIL). 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: 
Blockbuster, Inc. (NYSE: BBI) is a leading global provider of
in-home movies and game entertainment. Earlier this month, Viacom
announced the ratio at which it would exchange its own shares for
those of Blockbuster, enticing investors to make the deal by offering
a premium of 19 percent, based on the closing values of the stock
September 7th. However, due to industry weakness, along with
Blockbuster's investment in its key growth initiatives, the company
announced that it expects diluted earnings per share for 2004 to
decrease about -30% from the adjusted diluted earnings per share total
for 2003. As for its second quarter, Blockbuster reported net income
of 26 cents per diluted share, which edged past the consensus by a
penny but fell year-over-year from 34 cents. The company has
experienced some recent downward revisions from analysts, and its
earnings estimates for the year ending December 2004 have moved lower
over the past month. However, Blockbuster remains on track or ahead of
schedule with all of its strategic initiatives, which includes
transforming the company into a broader entertainment destination
where customers can rent, buy or trade movies and games, new or used,
in-store or online. For the moment though, investors may want to hold
off on a position until analysts give this industry leader's earnings
estimates a lift. 
Hutchinson Technology, Inc. (NASDAQ: HTCH) is the leading
worldwide supplier of suspension assemblies for disk drives. Excluding
a tax benefit, the company's third quarter net income would have
totaled $4.138 million, or 16 cents per diluted share. In the
comparable fiscal 2003 period, Hutchinson Technology reported net
income of $16.407million or 55 cents per diluted share, on net sales
of $120.127 million. The company's gross profit margin in the fiscal
2004 third quarter was 24% compared with 32% in the fiscal 2003 third
quarter. The decline resulted from lower suspension assembly shipment
volume, lower component sales and lower utilization of production
capacity. Over the last month, analysts have lowered full year fiscal
2004 earnings estimates by -5% due to the sluggish sales and gross
profit. However, Hutchinson Technology believes the downturn is
temporary and said it continues to expect industry-wide demand for
suspension assemblies to grow at about the same rate as growth in disk
drive shipments. Once the company passes by this tough time, it should
be able to get back on track, and the company does continue to sign
agreements with leading disk drive manufacturers. However, the best
move right now may be to wait and watch for its earnings estimates to
gain more upside momentum. 
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 in July. 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. Similar to its industry peers,
AMR had to grapple with a challenging environment, led by very high
fuel prices and rising labor costs. Yesterday, the company announced
that it will increase most domestic U.S. and U.S. to Canada fares $5
one way and $10 round trip. The increase, which is effective
immediately, is necessary to help offset the continuing high cost of
fuel. 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. AMR said it ran much more efficiently, than it did in
the year-ago quarter, and is making changes to improve its earnings
potential on a daily basis. The entire industry is feeling the
pressure right now. Once the environment improves, a leader like AMR
should be a big beneficiary. At the moment though, it might be best to
hold off opening or widening any positions in AMR. 
Intersil Corporation (Nasdaq: ISIL) is a world leader in the
design and manufacture of high performance analog solutions. In July,
the company reported a pretty good second quarter. Net revenue was
$144.2 million, an increase of +5% from the first quarter of 2004 and
+15% from the second quarter of 2003. On a generally accepted
accounting principles (GAAP) basis, net income was $27.2 million or 19
cents per diluted share of common stock for the second quarter of
2004. This compares to net income of $27.3 million or 19 cents per
diluted share for the first quarter of 2004. However, earlier in
September the company reduced its estimates based on recent and
forecasted order rates from customers. Intersil now expects revenue to
be approximately $140 million, where previously, the company had
expected revenue between $154 million and $160 million. This revised
revenue should result in adjusted earnings per share of approximately
15 cents for the third quarter. The lower revenue forecast is a result
of orders trending below previous expectations, driven by lower than
expected end demand, along with customer reductions in component
inventory levels. Analysts have followed the company's warning and
recently decreased the third quarter estimates from 22 cents down to
16 cents. The company's rapidly expanding portfolio of products should
enable them to generate profitable growth and strong cash flow
throughout the business cycle, but investors may want to wait until
orders increase and stronger revenues materialize. 
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