Zacks Sell List Highlights: K-Swiss, Sepracor, Pozen, and D.R. Horton

Business Wire, August 1, 2007

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): K-Swiss Inc. (NASDAQ: KSWS) and Sepracor Inc. (NASDAQ: SEPR). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Pozen, Inc. (NASDAQ: POZN) and D.R. Horton Inc. (NYSE: DHI). 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% annually ( 5.3% vs. 12.1%). 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 KSWS and SEPR 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:

K-Swiss Inc. (NASDAQ: KSWS) has seen 2007 earnings estimates drop 19 cents over the past week. Estimates now stand at $1.22 per share. The company said in late-July it expects third-quarter and annual earnings to decline, as it faces lower demand and invests in international expansion.

Sepracor Inc. (NASDAQ: SEPR) has experienced a drop in analyst estimates. Earnings estimates for this year stand at $1.93 per share, down 15 cents from a week ago. The stock plunged last Friday after the drug developer said its second-quarter profit fell 44% and it lowered guidance for the remainder of the year.

Here is a synopsis of why POZN and DHI 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:

Pozen, Inc. (NASDAQ: POZN) has seen its 2007 estimates fall nine cents to two cents per share over the past week. Next year's estimates have dropped 13 cents to 11 cents per share over the past week. The company missed earnings estimates by over 44% for their second quarter.

D.R. Horton Inc. (NYSE: DHI) saw this year's estimates take an 89 cent-per share fall over the past week. The company posted a third-quarter loss last Thursday as DHI wrote-down the value of unused land and warned there was no recovery in sight for the troubled housing industry.

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 32.2%. 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% annually ( 5.3% vs. 12.1%). 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 ADR's.

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