Lehman, Merrill on Zacks 'Sell' List

Zacks.com, Chicago, has highlighted its #5 (Strong Sell) ranking on the stock of Lehman Brothers Holdings Inc. and its #4 (Sell) ranking on the stock of Merrill Lynch & Co. The company noted that Lehman filed for Chapter 11 bankruptcy protection on Sept. 15. "The company, which was trying to finance several risky assets with little capital, became the largest bankruptcy in U.S. history and also the highest-profile casualty of the global credit crisis." Merrill Lynch, which has agreed to be acquired by Bank of America, has posted over $40 billion in writedowns and credit losses in the past year, Zacks said. "Additional writedowns are expected in coming quarters at the world's largest retail brokerage if economic conditions do not improve," the research firm said. Stocks with a #5 (Strong Sell) or a #4 (Sell) rank should be sold or avoided in the next one to three months, according to Zacks. The company can be found online at http://www.zacks.com.