Zacks Sell List Highlights: Intel Corp, Photronics Inc, Marriott International Inc, Red Robin Gourmet Burgers
Thursday, October 09, 2008 4:10 PM
Symbols: INTC, MAR, PLAB, RRGB
(Source: Business Wire)trackingZacks.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): Intel Corp. (NASDAQ: INTC) and Photronics Inc. (NASDAQ: PLAB). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Marriott International Inc. (NYSE: MAR) and Red Robin Gourmet Burgers (NASDAQ: RRGB). 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 81% annually (+2% versus +11%). 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 INTC and PLAB 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:

Intel Corp (NASDAQ: INTC) recently touched its 5-year low amid fears that declining PC orders will take a toll on demand for semiconductors. The shift to low-end notebooks that hurt the company in the second quarter is likely to continue. Even though Intel earns more than 70% of its revenue from the international market, consumer spending in Brazil, Russia, India, and China is coming under pressure due to the global economic turmoil. Analysts have cut their 2008 forecast by a penny to $1.27 per share in the last month.

Photronics Inc (NASDAQ: PLAB) posted a wider quarterly loss than expected, as a downturn in the memory market hurt sales of its photomasks. Third-quarter net loss was $ 205.6 million, or $4.93 a share, compared with a loss of $2.2 million, or 5 cents, a year ago. The photomask sector might face increasing pricing pressure as larger rivals Toppan and Dai Nippon protect their market share in the current economic turmoil. Analysts have raised their loss forecast for 2008 by 3 cents to 41 cents per share.

Here is a synopsis of why MAR and RRGB 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;

Marriott International Inc (NYSE: MAR) reported a 28% drop in third-quarter profit due to the slowdown in its time-share business and guided to "unusually challenging" 2009. The company also cut its fiscal fourth-quarter outlook, prompting analysts to slash their full-year 2008 estimates by 14 cents to $1.64 per share.


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