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Zacks Sell List Highlights: Mentor, American Woodmark, Borders, and Micron Technology

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): Mentor Corp. (NYSE: MNT) and American Woodmark Corp. (NASDAQ: AMWD). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Borders Group, Inc. (NYSE: BGP) and Micron Technology Inc. (NYSE: MU). 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 132% annually (+5.1% vs. +11.9%). 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 MNT and AMWD 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:

Mentor Corp. (NYSE: MNT) has seen 2007 earnings estimates drop 39 cents over the past 60 days. Estimates now stand at $1.25 per share. The company reduced its sales guidance for its fiscal year ended in March 2007. The company projected revenue between $300 million and $302 million, down from previous guidance of $305 million to $315 million.

American Woodmark Corp. (NASDAQ: AMWD) has experienced a drop in analyst estimates. Earnings estimates for this year stand at $1.72 per share, down 60 cents from a week ago. AMWD said fiscal 2008 earnings will be down sharply as the housing slump continues to dampen demand. The company expects profit of $1.50 to $1.80 per share for the year ending April 30, 2008, down from an adjusted $2.04 per share this fiscal year.

Here is a synopsis of why BGP and MU 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:

Borders Group, Inc. (NYSE: BGP) has seen this years estimates fall 31 cents to nine cents per share over the past 30 days. "The current sales environment was more challenging than we anticipated," said CEO George Jones, "and that trend has continued." Gross profit margin fell almost a full percentage point and is now about 22%. Jones cited increased promotional discounts.

Micron Technology Inc. (NYSE: MU) saw its 2007 estimates take a 26 cent-per share fall over the past 60 days. During the second quarter ended Mar. 1, Micron incurred a net loss of $52 million on net sales of $1.43 billion. In the same period of 2006, the company had earned $193 million on $1.23 billion in sales.

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." Since inception in 1988, #1 Rank stocks have generated an average annual return of +31.9%. 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 132% annually (+5.1% vs. +11.9%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.

Zacks Rank performance is the total return (price changes + dividends) of equal weighted portfolios, consisting of those stocks with the indicated Zacks Rank, assuming zero transaction costs. These returns are not the result of a backtest; these are actual returns since 1988. The stocks in the Zacks Rank portfolios were available to Zacks clients before the beginning of each month (monthly rebalancing). Performance results from 1988 through September 2006 are based on a subset of all Zacks Rank stocks that excludes stocks covered by only one analyst and ADRs.

Zacks Profit from the Pros e-mail newsletter offers continuous coverage of Zacks Rank Buy stocks and highlights those stocks poised to outperform the market. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=94

About Zacks

Zacks.com is a property of Zacks Investment Research, 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.

The S&P 500 Index is a well-known, unmanaged index of the prices of 500 large-company common stocks, mainly blue-chip stocks, selected by Standard & Poor's. The S&P 500 Index assumes reinvestment of dividends but does not reflect advisory fees. An investor cannot invest directly in an index.

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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