Word of the Day

Commodity

Even if you don't think you do, you already know plenty about commodities. Want us to prove it? No problem.

What makes oil produced in Saudi Arabia different from oil exported from Nigeria? It's the same thing that makes the corn you ate at last summer¿s barbecue different from the corn used to produce ethanol. Stumped? Well, don't feel bad, it's a trick question. The answer? Absolutely nothing. Corn is corn no matter where it comes from -- just as wheat is wheat and natural gas is -- right! -- natural gas. (Though the quality may differ, the make-up is uniform.)

So, in less elaborate terms, corn and oil (and all other commodities) are homogenous goods that can be processed, resold and more often than not, used as an input to the production of other goods or services. These goods are traded on a commodity exchange, thus setting the price-per-barrel (or other metric unit) used to value them.

Now pay attention, here's a question that indeed does have an answer: What is the difference between a commodity and a stock? While a stock can tank and become worthless, a commodity cannot have its value be wiped to zero. One other difference: Most commodities are traded in futures, meaning traders buy and sell where they think the price of a product will be at a certain point in the future. Stocks trade based on the value of the underlying company at that point in time.

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Thursday, July 03, 2008

Zacks Sell List Highlights: USA Truck Inc., Sun Microsystems Inc., Washington Post Co. & Starbucks Corp.

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Comtex

CHICAGO, Jul 03, 2008 (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): USA Truck Inc. (NASDAQ:USAK) and Sun Microsystems Inc (NASDAQ:JAVA). Further, Zacks announced #4 Rankings (Sell) on two other widely held stocks: Washington Post Co. (NYSE:WPO) and Starbucks Corp. (NASDAQ:SBUX). 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 129% annually (+5.3% vs. +12.1%). 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 USAK and JAVA 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:

USA Truck Inc. (NASDAQ: USAK) is struggling mightily with higher energy costs, carrying significant exposure to both gasoline and diesel fuel. The company's stock price has been hit hard over the last 9 months, dropping from $19 to its current price just above $11. USA Trucking has posted losses in its last two quarters, and analyst estimates continue to fall, with the current-year estimate dropping from 22 cents per share 90 days to its current projection of a loss of 18 cents.

Sun Microsystems Inc. (NASDAQ: JAVA) has had a tough run over the last 9 months, as the company's share price has dropped from $24 a share last October to its current price just over $10. Analyst earnings estimates have been plummeting, with the current-year estimate dropping to 84 cents from $1.15 just 90 days ago. Sun missed analyst earnings targets last quarter, posting gains of 10 cents against the projected 19 cents.

Here is a synopsis of why WPO and SBUX 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;

Washington Post Co. (NYSE: WPO) is operating in an industry that has been confronted with intense competition over the last couple of years, as newspapers and magazines alike compete for advertising dollars with online vehicles. This dynamic is showing up in the company's share price, which is down more than 40% just this year alone. The Post reported earnings of $5.68 per share in its most recently reported quarter, 15.73% less than analyst projections.

Starbucks Corp. (NASDAQ: SBUX) just announced that it is planning to close 600 of its domestic locations, with potential job losses as high as 12,000. This decision comes on the heels of a litany of problems that the company has been confronted with, including intense industry competition and a strained consumer environment. Starbucks share price has been in a gradual down trend for the last two years.

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 +32.2%. 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 129% annually (+5.3% vs. +12.1%). 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.

Zacks "Profit from the Pros" e-mail newsletter offers continuous coverage of Zacks Rank Buy stocks and highlights those stocks poised to outperform the market. Subscribe to this free newsletter today by visiting http://at.zacks.com/?id=94

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=95

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.

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.

SOURCE: Zacks.com

Zacks.com Michael Vodicka, 312-265-9226 Email: pr@zacks.com Visit: www.Zacks.com

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   Wire 2008 ********************************************************************** As of Sunday, 06-29-2008 23:59, the latest
   Comtex SmarTrend� Alert, an automated pattern recognition system, indicated a DOWNTREND on 05-13-2008 for WPO @ $647.90. For
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