Zacks Gives Thumbs Down to Accredited

Accredited Home Lenders Co., San Diego, is one of the featured stocks on Zacks.com's Sell List for Dec. 15.The online unit of Chicago-based Zacks Investment Research has given Accredited its lowest rating, #5--Stocks to Sell Now. Zacks said Accredited's 2006 earnings estimates have dropped $0.74 per share over the past 60 days. Its third-quarter earnings fell by 55% as it booked a lower premium on loans sold and added higher provisions for repurchases. Accredited's net income for the quarter ended Sept. 30 totaled $18.4 million, down from $41.3 million for the comparable period in 2005. In its earnings release on Nov. 6, chairman and chief executive James Konrath said the company's recent performance had been hurt "by fierce pricing competition, ongoing product contraction, anticipated higher delinquencies and losses, and activities associated with the acquisition of Aames Investment Corp. that was effective on Oct. 1. Despite these headwinds, Accredited originated loans at a profit, maintained our low cost structure, and closed the acquisition of Aames on schedule." The Zacks decision runs counter to one made by Roth Capital. According to Yahoo Finance, on Nov. 16 Roth upgraded Accredited from "hold" to "buy."