Lawson Software and National Semiconductor
CHICAGO--(BUSINESS WIRE)--Sept. 20, 2006
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): Hi-Tech Pharmacal Inc. (NASDAQ: HITK) and Owens-Illinois Inc.
(NYSE: OI). Further, Zacks announced #4 Rankings (Sell) on two other
widely held stocks: Lawson Software Inc. (NASDAQ: LWSN) and National
Semiconductor Corp. (NYSE: NSM). 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 HITK and OI 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:
Hi-Tech Pharmacal Inc. (NASDAQ: HITK) has seen this year's
earnings estimates drop 10 cents per share over the past two months.
The company said it swung to a first-quarter loss as sales declined by
27 percent and research and development costs increased sharply.
Hi-Tech said sales of generic drugs fell to $8.4 million from $13.9
million last year, due to lower unit sales of cough and flu products.
Owens-Illinois Inc. (NYSE: OI) has experienced a drop in analyst
estimates. Earnings estimates for this year stand at $1.07 per share,
down nine cents from 60 days ago. The company has missed earnings
expectations in four out of the past five quarters. Energy and raw
material costs are hurting the company.
Here is a synopsis of why LWSN and NSM 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:
Lawson Software Inc. (NASDAQ: LWSN) has been the target of
increasing bearishness by analysts. Over the past two months, full
year estimates have declined over 30%. The new consensus estimate
calls for 23 cents per share this year. Lawson had delayed filing
their latest report in order to consolidate Intentia, a Swedish
business software developer the company bought in April.
National Semiconductor Corp. (NYSE: NSM) has seen its earnings
estimates drop for this year. The current 2006 consensus estimate of
$1.31 per share is 17 cents below the forecast of two months ago. The
company said that revenue in the current quarter will be down between
2% and 5% sequentially. Analysts had expected a gain. There was
weakness in wireless handset and LCD monitor customers.
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 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
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may engage in transactions involving the foregoing securities for the
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Roopak Chakravarty, 312-630-9880 x 188
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