Business & Finance
Business and FinanceBusiness and Finance 
Thu, December 31, 2009
Maiden Holdings, Ltd., Energy Transfer Partners, L.P., Ciena Corp. and BPZ Resources, 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): Maiden Holdings, Ltd. (Nasdaq: [ MHLD ])and Energy Transfer Partners, L.P. (NYSE: [ ETP ]). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Ciena Corp. (Nasdaq: [ CIEN ]) and BPZ Resources, Inc. (NYSE: [ BPZ ]). To see the full Zacks #5 Rank List - Stocks to Sell Now visit: [ http://at.zacks.com/?id=92 ].
"Earnings estimate revisions are the most powerful force impacting stock prices."
Since inception in 1988, the S&P 500 has outperformed the Zacks #5 Rank List of Stocks to Sell Now by 80% annually (+2% vs. +10%). 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 MHLD and ETP 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:
Maiden Holdings, Ltd. (Nasdaq: [ MHLD ]) posted a third-quarter profit of 23 cents per share on Nov 10, falling short of analysts' projections by a penny. Earnings declined by 2 cents per share on a year-over-year basis. The Zacks Consensus Estimate for the current year is pegged at a profit of 92 cents per share, a decrease from $1 over the last 60 days. Next year's average forecast fell 8 cents to $1.20 per share in the same period.
Energy Transfer Partners, L.P. (NYSE: [ ETP ]) saw a 98% year-over-year decline in third-quarter profit. Last month, the company reported earnings 1 cent per share, which came in 97% behind the Zacks Consensus Estimate. Revenues plunged to $1.13 billion from $2.21 billion in the prior-year quarter. The full-year average forecast slipped to $2.47 per share from $2.51 cents in the last 30 days as 1 analyst out of 14 cut back on expectations.
Here is a synopsis of why CIEN and BPZ 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;
Ciena Corp. (Nasdaq: [ CIEN ]) swung to a fourth-quarter loss of 21 cents per share on Dec 10, compared to analysts' expectations of a loss of 16 cents. Revenues dropped to $176.3 million from last year's $179.7 million. For the full year, the Zacks Consensus Estimate widened to a loss of 47 cents per share from 23 cents over the past month as all of the 8 covering analysts revised downward.
BPZ Resources, Inc. (NYSE: [ BPZ ]) reported a loss of 8 cents per share for the third quarter on Nov 9, while analysts expected a loss of 3 cents. The Zacks Consensus Estimate for the full year stands at a loss of 28 cents per share, wider than a loss of 16 cents projected 2 months ago. The following year's estimate slipped 7 cents to a profit of 35 cents per share during that time period.
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 +27%. 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 significantly underperformed the S&P 500 (-0.9% versus +9%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.
Visit [ http://www.zacks.com/performance ] for information about the performance numbers displayed in this press release.
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