Zacks Sell List Highlights: Sotheby's, Bunge Ltd, Starbucks Coffee Co, Office Depot 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): Sotheby's (NYSE: BID) and Bunge Ltd (NYSE: BG). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Starbucks Coffee Co (NASDAQ: SBUX) and Office Depot Inc (NYSE: ODP). 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 BID and BG 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:

Sotheby's (NYSE: BID) recently said it would record a pretax charge of $15 million in the third quarter as auctioned art failed to fetch the minimum price it guaranteed sellers. Street forecasts for 2008 have been slashed accordingly to $2.19 per share but the most accurate estimate points to only $2.02. The ongoing global credit crisis has affected the sale of art and is not likely to improve until the economy improves. The stock is down more than 75% this year and analysts see no meaningful potential catalysts that could drive the stock upward.

Bunge Ltd (NYSE: BG) saw quarterly profit fall 33% as foreign exchange losses and tough market conditions weighed on the fertilizer producer. Third-quarter profit was $234 million, or $1.70 per share, falling short of analyst estimates by about 38%. The disappointing results led analysts to slash their 2008 forecasts to $10.90 per share from $11.46, a week ago. Investors are also concerned that demand for commodities might dwindle into 2009, presenting further challenges to companies like Bunge.

Here is a synopsis of why SBUX and ODP 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;

Starbucks Coffee Co (NASDAQ: SBUX) continues to face the challenge of getting consumers to buy its pricey lattes in a lackluster economy. The downturn persisted in form of further deterioration in sales in the fourth quarter. The company does not see the economy improving soon but has no plans of changing the structure of its retail pricing to boost sales. While consensus estimates for 2008 profit stands at 75 cents per share, the most accurate estimate is more bearish at 74 cents.

Office Depot Inc (NYSE: ODP) posted a loss in the third quarter, hurt by declining sales in its North American stores, totaling $6.7 million, or 2 cents a share, compared with profit of $117.5 million, or 43 cents, a year ago. The company has missed analyst forecasts in 3 out of the last 4 quarters. Consensus on the company’s 2008 profit is now pegged at 49 cents, 7 cents down from a month earlier. However, the most accurate estimate is even more bearish at 44 cents per share.

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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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