Zacks Sell List Highlights: General Motors, Ruby Tuesday, Axcelis Technologies, and Cymer

Business Wire, Dec 14, 2004

CHICAGO -- 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): General Motors Corporation (NYSE:GM) and Ruby Tuesday, Inc. (NYSE:RI). Further they announced #4 Rankings (Sell) on two other widely held stocks: Axcelis Technologies, Inc. (NASDAQ:ACLS) and Cymer, Inc. (NASDAQ:CYMI). To see the full Zacks #5 Ranked list of Stocks to Sell Now then visit: http://at.zacks.com/?id=92

Since inception in 1988, the S&P 500 has outperformed the Zacks #5 Ranked Strong Sells by 168.2% annually (11.8% vs. 4.4% 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 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 Zacks ranked stocks:

General Motors Corporation (NYSE: GM) earnings estimates for the year ending December 2004 remain below levels from two months ago by 69 cents, or approximately -10%. In October, General Motors reported third quarter net income of 78 cents per diluted share, which missed the consensus by more than -18%. The company said automotive results were

weaker due to increased losses in Europe, lower production volumes in North America, and slower economic growth in China. General Motors forecasted 2004 earnings per share between $6 and $6.50, excluding one-time items, which was below its mid-year guidance.

Ruby Tuesday, Inc. (NYSE: RI) earnings estimates for the year ending May 2005 remain below levels from three months ago, including a slide of 6 cents, or about -3%, in the past seven trading days. Due to a soft fiscal second quarter same-store sales performance, Ruby Tuesday announced last week that it expects diluted earnings per share of 30 cents for the quarter, which was below the consensus at about 33 cents. The company will release its fiscal second quarter numbers on January 5th.

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 ranked by Zacks:

Axcelis Technologies, Inc. (NASDAQ: ACLS): In November, Axcelis posted third quarter net income of 19 cents per share, reversing a year-ago loss but falling short of the consensus by about -40%. During the last two weeks of the quarter, the company said it saw an acceleration of softness in its markets, represented by customer requirements being pushed out to the first half of 2005. In addition, Axcelis Technologies forecasted fourth quarter earnings per share that was below the consensus. Earnings estimates for the year ending December 2004 are down 33 cents, or about -31%, from two months ago.

Cymer, Inc. (NASDAQ: CYMI) said last week that demand for consumables and service has continued to slow, and the company therefore expects fourth quarter revenue to decline -12% to -13% from the third quarter's $107.1 million. Cymer's original guidance was for a decline of -10%. Also, the company said its gross margin will be in the range of 34% to 36%, compared to its previous guidance of 37% to 39%, due mainly to the lower level of factory loading in its factory to work down its consumables and spares inventory. Earnings estimates for the year ending December 2004 remain below levels from three months ago, including a slide of 3 cents, or about -3%, in the past seven trading days.

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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 32.9% compared to the (a)S&P 500 return of only 11.8%. 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 168.2% annually (11.8% vs. 4.4% respectively). Thus, the Zacks Rank system can truly be used to effectively manage portfolio trading.

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