School Specialty, Inc. (SCHS)
The recent economic downturn has resulted in an uncertainty in the school districts related to state budget funding levels, which has led to a cautious spending approach. Consequently, <b>School Specialty</b> (<a href=http://www.zacks.com/stock/quote/schs>SCHS</a>) has been registering a sustained decline in the topline. <p> Continued softness in demand is witnessed in both curriculum-based products and supplemental materials. The furniture market has been the worst hit by budget cuts, as school construction and modernization projects have been cancelled or postponed. <p> Further, the intense competition and seasonality of business undermine the company's future growth prospects. As such, we have an Underperform recommendation on the stock.
March 11, 2010 | Filed Under Stocks to Sell
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