Zacks Sell List Highlights: Alpharma, Jones Apparel, Interpublic Group of Cos., and Internet Security Systems

CHICAGO--(BUSINESS WIRE)--Sept. 18, 2003--Zacks.com releases details on a group of stocks that are part of their exclusive list of Stocks to Sell Now. These stocks are currently rated as a Zacks Rank #5 (Strong Sell). Note that since 1988 the S&P 500 has outperformed the Zacks #5 Ranked stocks by 166.7% annually (11.3% vs. 4.2% respectively). While the rest of Wall Street continued to tout stocks during the market declines of the last few years, we were telling our customers which stocks to sell in order to save themselves the misery of unrelenting losses. Among the #5 ranked stocks today we highlight the following companies: Alpharma Inc. (NYSE:ALO) and Jones Apparel Group, Inc. (NYSE:JNY). Further they announced #4 Rankings (Sell) on two other widely held stocks: The Interpublic Group of Companies, Inc. (NYSE:IPG) and Internet Security Systems, Inc. (NASDAQ:ISSX). To see the full Zacks #5 Ranked list of Stocks to Sell Now then visit: http://stockstosellprbw.zacks.com/

Here is a synopsis of why these stocks have a Zacks Rank of 5 (Strong Sell) and should most likely be sold or avoided for the next 1 to 3 months. Note that a #5/Strong Sell rating is applied to 5% of all the stocks we rank:

Serious business, investment and technology intelligence for a serious advantage - BizVantage!
Try the free, no-hassle 6 month trial!

Alpharma Inc. (NYSE:ALO) is a growing specialty pharmaceutical company with expanding global leadership positions in products for humans and animals. Alpharma's earnings estimates for both this year and next are below levels from a month ago, as the company recently reduced estimates for the third and fourth quarters. It now expects third quarter diluted earnings of 10 cents to 15 cents per share and fourth quarter earnings of 40 cents to 45 cents, both before the impact of certain non-operating items. Previously, the company was expecting 25 cents to 30 cents and 50 cents to 55 cents respectively in those two periods. Alpharma said the estimates primarily reflect lower than expected sales in its Active Pharmaceutical Ingredients and U.S. Human Pharmaceuticals businesses in those two quarters. Nevertheless, Purepac Pharmaceutical Company, a subsidiary of Alpharma, recently received final approval from the FDA for gabapentin capsules, 100mg, 300mg, and 400 mg. These capsules are the generic equivalent of Neurontin(R) brand capsules, marketed by Pfizer (NYSE: PFE), and are used in the treatment of partial seizures of epilepsy and post-herpetic neuralgia. Alpharma's industry can oftentimes be volatile, so investors may want to hold off on opening or deepening a position in the company until its earnings estimates gain more upside momentum.

Jones Apparel Group, Inc. (NYSE:JNY) is a designer and marketer of branded apparel, footwear and accessories. Earnings estimates for this year and next remain approximately -17% and -15% below levels from two months ago for Jones Apparel, as the retail environment remains challenging for many companies in its industry. Other apparel companies that are have some difficulties right now include Innovo Group (NASDAQ:INNO) and Tropical Sportswear International (NASDAQ:TSIC). In its second quarter report from late July, Jones Apparel reported earnings of 54 cents per share, which surpassed the year-ago mark but missed the consensus by two cents. The company also reduced its full year 2003 earnings forecast due to the uncertain economic climate and its possible effect on consumer spending in the latter half of the year. In spite of difficulties, the company recently signed an exclusive license agreement with Rem Eyewear, which will manufacture and distribute women's and men's optical eyewear under the Jones New York brand. As conditions for retailers move forward, so too should Jones Apparel's earnings estimates. For the moment though, investors may want to play it safe for a while longer and watch for the company's earnings estimates to head higher before opening or deepening a position.

Below is a synopsis of why these two stocks have a Zacks Rank of 4 (Sell) and should also most likely be sold or avoided for the next 1 to 3 months. Note that a #4/Sell rating is applied to 15% of all the stocks we rank:

The Interpublic Group of Companies, Inc. (NYSE:IPG) is a global advertising organization that is involved in providing marketing services for its clients. Advertising has been in a slump for a while now, and continues to move along rather sluggishly. Challenging business conditions helped to pull Interpublic's second quarter earnings below the consensus when it reported in August. Revenue was able to grow in the quarter, but by less than 1%, as many operations experienced weak demand for services. Earnings estimates for this year have slumped by about 17 cents, or -28%, from levels three months ago, while next year's earnings have slipped by only about 2 cents. Even with such challenging conditions, Interpublic is taking charge. The company said it was in the early stages of a turnaround, and was able to strengthen the balance sheet and further improve liquidity. The company should be in a better position once business conditions move forward. Therefore, it may be best to delay opening or strengthening a position in Interpublic until a more favorable environment sparks its earnings estimates higher.

Internet Security Systems, Inc. (NASDAQ:ISSX) is a leading global provider of security management solutions for protecting e-business. In its most recent quarterly report from July, Internet Security stated that it expects the enterprise spending environment to remain difficult throughout 2003, and provided a new guidance that was below previous expectations. In the second quarter, earnings of 12 cents per share missed the consensus by two cents while revenue declined by -2%. Over the past three months, earnings estimates for this year and next have moved lower by approximately -16% and -17%. Various types of computer software services companies continue to struggle a bit in this environment, including InfoSpace (NASDAQ:INSP) and ScanSoft (NASDAQ:SSFT), for example. But Internet Security is one of the most innovative names in its space, and said it will continue to work on business efficiencies. Once the spending environment turns the corner, the company should have plenty of opportunities to fulfill its potential. In the interim, investors may want to consider sitting on the sidelines a bit longer with Internet Security, and wait for its earnings estimates to show more upward mobility.

To truly take advantage of the Zacks Rank, you need to first understand how it works. That's why we created the free special report; "Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions." Download your free copy now to prosper in the years to come. http://freezrguidebw.zacks.com/

About the Zacks Rank

For over 15 years the Zacks Rank has proven that "Earnings estimate revisions are the most powerful force impacting stock prices." Since 1988 the #1 Ranked stocks have generated an average annual return of +33.6% compared to the (a)S&P 500 return of only +11.3%. Plus this exclusive stock list has generated average gains of +13.3% during the last 3 years; a substantial return compared to the large losses suffered by most investors during that time frame. Also note that the Zacks Rank system has just as many Strong Sell recommendations (Rank #5) as Strong Buy recommendations (Rank #1). And since 1988 the S&P 500 has outperformed the Zacks #5 Ranked stocks by 166.7% annually (11.3% vs. 4.2% respectively). Thus, the Zacks Rank system can truly be used to effectively manage the trading in your portfolio.

For continuous coverage of Zacks #1 and #5 Ranked stocks, then get your free subscription to "Profit from the Pros" e-mail newsletter where we highlight stocks to buy and sell using our time tested stock evaluation model. http://zacksrankprbw.zacks.com/

The Zacks Rank, and all of its recommendations, is created by Zacks & Co., member NASD. Zacks.com displays the Zacks Rank with permission from Zacks & Co. on its web site for individual investors.

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1981 to compile, analyze, and distribute investment research to both institutional and individual investors. The guiding principle behind our work is the belief that investment experts, such as brokerage analysts and investment newsletter writers, have superior knowledge about how to invest successfully. Our goal is to unlock their profitable insights for our customers. And there is no better way to enjoy this investment success, than with a FREE subscription to "Profit from the Pros" weekly e-mail newsletter. For your free newsletter, visit http://www.freeprofitbw.zacks.com

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

(a)The S&P 500 Index ("S&P 500") is a well-known, unmanaged index of the prices of 500 large-company common stocks selected by Standard & Poor's. The S&P 500 includes the reinvestment of all dividends, no transaction costs, and represents the gross returns before management fees.

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.