Posted on 09/22/2009 10:53:34 AM PDT by Steelfish
Ten Big Companies That Are Veering Toward Bankruptcy
by Vincent Fernando and Joe Weisenthal in Investing, Media, Products and Trends, Recession
Despite a few green shoots in the economy and a rocketing stock market, many large companies are still struggling to avoid bankruptcy.
A new report by Audit Integrity identifies some high-profile names "that have the highest probability of declaring bankruptcy among publicly traded firms."
Which companies appear the worst off? We took the list and removed any company with a market cap under $3 billion. We then ranked the remaining names by a simple measure of the market's perceived bankruptcy risk - Market Cap (MC) divided by Enterprise Value (EV). The less MC vs. EV, the less residual shareholders' value (above what debt holders can claim) the market is pricing-in for the company. Thus a lower MC/EV means the market thinks the company is more likely to go bankrupt.
1. Hertz When you have tons of debt financing your fleet of cars, falling rental demand really hurts.
While the company raised new capital in May for some breathing room, Fitch and Moody’s actually cut their ratings for the company in July.
Ignoring the downgrade, shares kept rallying and are now at over five times the March $2 low. Best of luck.
Market Cap (MC)/Enterprise Value (EV) = 32%
2. Textron What a tough time to be selling business jets.
(Excerpt) Read more at finance.yahoo.com ...
That’s a buyer’s dream. To find actualy money in one of the used clothes for sale LOL.
When I was still in Vancouver, there was a used-clothes store which is popular who’s name escapes me, and I was able to buy for $7 probably the last known Marlboro jeans made in Italy in pristine condition. I rarely wear it.
AMD has always been chasing Intel ever since I can remember. They are the reason Intel went from numbered chips like the 386, 486 and started the Pentium chip, etc, etc. Many years ago, I took a tour through AMD’s plant. Looked like a start-up compared to Intel. I don’t know how others feel about Intel but they are one professional outfit.
Word of advice for Macy’s, cut your prices by 2/3’s. Might help save the business.
We rented a Hertz car in San Jose, CA last week. When I returned it they tried to imply that a paint mark was done on OUR rental time! Well, I whipped out the digital camera and took a few pictures. Meanwhile I asked for the manager of the lot to come over and discuss this with me. Well, it was IMPOSSIBLE that the paint mark was ours as there was no paint on the wheel/tire and the paint path was the largest next to the tire! It had been there for sometime as it was dried on very well and we had rain most of the time we had it. Plus you could see where they cleaned the paint off the tire!! After a conversation with my husband who was waiting for me at the terminal, they shook their heads and let us go.
SO, if you rent from Hertz, don’t trust their walking around the car alone for awhile.
Mylan ping, ruh-roh!
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