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Zacks Sell List Highlights Nautilus, Taro Pharmaceuticals, Kansas City Southern, and TCF Financial

Company Release - 1/24/2006 6:00 AM ET

CHICAGO--(BUSINESS WIRE)--Jan. 24, 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): Nautilus, Inc. (NYSE:NLS) and Taro Pharmaceuticals, Inc. (Nasdaq:TARO). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Kansas City Southern, Inc. (NYSE:KSU) and TCF Financial Corporation (NYSE:TCB). To see the full Zacks #5 Rank List - Stocks to Sell Now visit:

Since inception in 1988, the S&P 500 has outperformed the Zacks #5 Rank List -- Stocks to Sell Now by 155.5% annually (11.8% vs. 4.6% respectively). 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 NLS and TARO 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 Zacks ranked stocks:

Nautilus, Inc. (NYSE:NLS) blamed delays in the introduction of new products for adversely impacting revenues and profits. Accordingly, the company recently warned that fourth-quarter revenues and profits totaled $179-$183 million and 7-12 cents per share; previously the company had guided for revenues of $210 million and profits of 44-48 cents per share. Three of the four covering analysts slashed their full year forecasts in response, causing the consensus estimate for 2005 profits to fall to 80 cents per share from $1.08.

Taro Pharmaceuticals, Inc. (Nasdaq:TARO) has missed analysts expectations for three consecutive quarters. Ahead of the company's fourth-quarter report, expected to be released next month, analysts have been lowering their forecasts for 2006. The current consensus estimate of 81 cents is 34% below the estimate of just 60 days ago.

Here is a synopsis of why KSU and TCB 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:

Kansas City Southern, Inc. (NYSE:KSU) will report its fourth-quarter results on February 2. The company does have a history of exceeding expectations, but that has not stopped analysts from lowering their forecasts. The current consensus estimate for 2005 earnings of 12 cents per share is 18 cents below the forecast of just 60 days ago.

TCF Financial Corporation (NYSE:TCB) reported fourth-quarter results last week. The company exceeded expectations by a penny with profits of 50 cents per share. The bullish results did not stop analysts from downwardly revising their projections for 2006 earnings, however. The new consensus estimate calls for 2006 full year profits of $1.99 per share, eight cents less than a week ago. The revision reflects cuts by 12 of the 15 covering analysts.

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

About the Zacks Rank

For over 17 years, 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 +33%. 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 155.5% annually (+4.6% vs. +11.8%). Thus, the Zacks Rank system allows investors to truly manage portfolio trading effectively.

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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.

             Charles Rotblut, CFA, 312-630-9880 x 352
             [email protected]


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