Unload Shares of Great Atlantic & Pacific Tea

Great Atlantic & Pacific Tea (GAP Quote) recently reported earnings, a company we rate a sell. Our recommendation is based on the company's weakness in fresh segment sales, dwindling cash position and reported net loss.

In addition, GAP faces risks from mounting debt, negative returns and a weak liquidity position. However, impressive revenue growth, increasing shareholders' equity and higher average weekly sales per supermarket are the upsides to our sell rating.

Here are the earnings highlights:

• The company's fresh segment performed poorly. GAP's third-quarter sales at its fresh segment contributed 50.5% of the total sales. Sales in this segment declined 2.9% to $1.07 billion from $1.10 billion, due to store closures. ...