Zacks Sell List Highlights: Blyth Inc., Cabot Corp., Andrx Corp. and Energy East Corp

Business Wire, June 15, 2006

CHICAGO -- 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): Blyth Inc. (NYSE:BTH) and Cabot Corp. (NYSE:CBT). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Andrx Corp. (Nasdaq:ADRX) and Energy East Corp. (NYSE:EAS). 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 BTH and CBT 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 Zacks ranked stocks:

Blyth Inc. (NYSE:BTH) recently reported first-quarter results. Net sales declined approximately 4% year-over-year. Excluding items, earnings per share totaled 12 cents, which was 25% below analysts' expectations. The company stated that its quarterly results were challenged by continued reduced consumer discretionary spending on Home Expressions products across its major markets. BTH updated its guidance for fiscal year 2007. Excluding items, full year earnings per share are expected to be between $1.25 and $1.30. Analysts are forecasting $1.30 per share for fiscal 2007, which is 20 cents below one-month ago estimates.

Cabot Corp. (NYSE:CBT) released fiscal second-quarter results in early May. Earnings per share missed analysts' expectations by about 2%. The company commented that although its margins in rubber blacks and performance products improved from last quarter, high raw material and natural gas costs in the second quarter continued to put a great deal of pressure on margins and working capital. Earnings estimates for the year ending September 2006 are 11% lower than the levels of two months ago.

Here is a synopsis of why ADRX and EAS 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:

Andrx Corp. (Nasdaq:ADRX) posted first-quarter financial results in early May. Revenues and earnings per share underperformed year-over-year. The earnings per share result also fell short of the consensus estimate by 45%. Analysts are currently projecting full year earnings of 88 cents per share, which declined by seven cents over the past 60 trading days.

Energy East Corp. (NYSE:EAS) announced first quarter earnings of 90 cents per share in early May. The result missed the consensus estimate by nearly 13% and was below last year's $1.05 per share. Current full year earnings estimates of $1.80 per share have decreased by four cents from last week's levels and are eights cents lower than the levels of two months ago.

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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 $1.82 million - equivalent to a 33% 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 129.7% annually ( 5.2% vs. 11.9%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.

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