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 ...
Let them all fail. When did AMD EVER make money?? They have always been chasing the net profit. CBS? tough. Mylan, Hertz and all the rest so what? Let them all fail.
#7 CBS. hahahahahahahahaha
#3 Sprint, #6 Goodyear, NASCAR needs to be looking for new sponsors
Interesting that the left leaning CBS is in the group. I would not miss a thing if they went under.
Well this report is really going to help their stock prices!
as a seller of Sprint Nextel phones Sprint deserves to go down in flames. The Nextel Acquisition was just insane. They’ve been attempting to merge two completely different networks and customer bases for how many years now?
Not only that they’ve been trying to keep their customer base from hemorrhaging by lowering their credit requirements in order to boost subscribers. This doesn’t stymie their loses and just adds to churn and lost profits as equipment isn’t returned after cancellation and bills aren’t paid.
Just as an example I ran a customer for at&t and sprinthe pulled a 500 dollar deposit on at&t and a 50 dollar deposit on sprint ... not a good sign.
Never fear... 0bama is here!!!
I bought AMD-”powered” laptops before and most people probably know by now they overheat after a certain timeframe. CBS,aside from NCIS, football and college basketball, I dont ever watch them. Their news division is so far left, they probably compete with NBC on how far up they can kiss Obama’s ass.
The Macy’s here in L.A. is close to empty on the weekends, but the smaller discount stores like ROSS has been up to capacity so Ross must be doing something right.
10 more companies for Obama to take over.
Don't get me wrong, I want the sunlight to keep things clean, but this smells like a setup.....
I hear that Macy’s sales have been way off in areas where they took over other retail chains in recent years. Especially bad is Chicago and the upper Midwest where Macy’s took over the popular Marshall Field’s chain. There have been ongoing boycotts of Macy’s for three years now in Chicago over the takeover and disappearence of the Marshall Field’s chain, as they converted all of those stores to Macy’s.
Considering declining sales due to the recession, Macy’s high costs for buying out and taking over and converting other chains to Macy’s, and the black hole in their sales in the big Chicago market due to disgust over taking over Marshall Field’s, I’m not surprised to see Macy’s on a bankruptcy list.
Ross is very well run.
CBS please file 11.
It is. I just bought a CK jeans originally price at $50 for $19.99. The new Macy’s and KMart are TJ Maxx and Ross.
I have had very good luck with the quality of Ross over the years.
Some of my favorite shirts came from there and once I bought a pair of great jeans for 5 bucks that had twenty folded up in the pocket!
NCIS is the only thing I would miss on CBS. Sports will be on the other networks.
Seems like the research is worthless. Earlier this year these guys
singled out Starbucks for high risk accounting, and...
“Other companies on the radar screen for Audit Integrity include Altria, Apple, Applied Materials, Chevron, eBay, General Electric, Google, Nasdaq, Pepsi and Tyco. The Los Angeles-based company has identified about 300 companies in North America that it rates as “very aggressive” in its Accounting and Governance Rating.
The firm has warned of excess inventory buildup at Apple, for example, although Zwingli acknowledged that Apple has argued it needed sufficient inventory of popular products such as the iPhone to meet customer demand.”
http://tinyurl.com/lu7m96
Checked AMD just now and it’s UP on high volume..At 2:08PM ET: 6.149 Up 0.339 (5.83%)
Sounds like their research is BS!
Capitalism/USA companies might be a lot harder to kill than liberals, So. American despots and Obama might think.
I’ll miss NCIS and NCIS LA looks to be interesting also.
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