Zacks Sell List Highlights: Advanced Medical Optics Inc, Sterlite Industries Ltd, Trump Entertainment Resorts Inc, Lifeway Foods Inc.

CHICAGO--(BUSINESS WIRE)--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): Advanced Medical Optics Inc (NYSE: EYE) and Sterlite Industries Ltd (NYSE: SLT). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Trump Entertainment Resorts Inc (NASDAQ: TRMP) and Lifeway Foods Inc (NASDAQ: LWAY). To see the full Zacks #5 Rank List - Stocks to Sell Now visit: http://at.zacks.com/?id=92

“Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions”

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 EYE and SLT 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:

Advanced Medical Optics Inc (NYSE: EYE) posted lower-than-expected earnings in the second quarter and cut its profit guidance for 2008, as a weak U.S. economy affected the demand for its laser vision-correction procedures. The company expects to perform about 25 percent fewer procedures in 2008 compared with year-ago numbers. Advanced Medical now sees adjusted income of $1.00 to $1.15 per share, down from its prior guidance of $1.25 to $1.45 in 2008. Analysts have accordingly adjusted their earnings forecast by 20 cents and now expect a profit of $1.05 in the current year.

Sterlite Industries Ltd (NYSE: SLT) shed a large portion of its value after the company said it might combine with Madras Aluminum Co as part of its restructuring plan in India. By demerging its energy business, the company will lose a stable source of earnings. Parent Vedanta Resources' Zambian copper assets are expected to expose Sterlite to further fluctuations on the London Metal Exchange. The stock trades at a PEG ratio of 1.62, ahead of the overall market. Analysts have slashed their 2008 EPS view by 79 cents to $1.22 in the last week.

Here is a synopsis of why TRMP and LWAY 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;

Trump Entertainment Resorts Inc (NASDAQ: TRMP) reported a wider quarterly loss in August as more gamblers chose to cut down on discretionary spending. In the second quarter the company reported a loss of $29.8 million, or 94 cents per share, compared with $13.4 million, or 43 cents, last year. A charge of $18.6 million for writing down the value of a casino added to Trump’s losses. The gaming industry is not likely to improve before the economy recovers. Till then, analysts recommend staying on the sidelines and estimate a loss of $1.41 a share for 2008.

Lifeway Foods Inc (NASDAQ: LWAY) reported a 35% fall in second-quarter profit, indicating its cultured dairy products are not immune to recessionary pressures. The company’s net income was $911,718, or $0.05 per share, compared with $1.39 million, or $0.08, a year ago. Soaring milk prices and slowing sales further affected the maker of dairy drink Kefir. Although Lifeway predicted that milk prices would fall through the rest of 2008, grocery stores are showing no such signs. Analysts have trimmed their 2008 EPS view by 3 cents to $0.24 in the last seven days.

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 +30%. 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 81% annually (+2% versus +11%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.

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