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What Companies Could Go Under in 2014?

  +Follow December 10, 2013 8:44AM
Tickers Mentioned:

While millions of businesses fail every year in America, the failure of a large publically traded company is a much, much rarer event, with only a few every instance every year. It takes a lot to topple a giant, but that’s not to say it never happens. In the last decade alone, we’ve seen former multi-billion dollar behemoths Enron, Bear Stearns, Lehman Brothers, Kodak, and Blockbuster all go the way of the dodo.

2013 was a bull year, but that does not mean everyone had it good. There are a few companies that absolutely tanked out, and by Dec 2014 could completely cease to be.   

The following companies are major contenders to crap out next year:

Walter Energy (WLT)

Market Cap: $1.01 billion

2013 Performance YTD: -54.27 percent

Debt to Equity Ratio: 3.36

Walter Energy is frankly in an industry with an incredibly murky future. All major coal companies are in varying degrees of trouble, with giants like Peabody (BTU) and Arch Coal (ACI) also experiencing significant losses this year. However, Walter looks to be especially vulnerable, as they carry a debt-to-equity ratio of an incredibly high 3.36, rapidly declining earnings per share, and a P/E ratio of 268.

BlackBerry née Research in Motion (BBRY)

Market Cap: $3.01 billion

2013 Performance YTD: -51.27 percent

Debt to Equity Ratio: 0

Large companies that go bankrupt are quite often ones that were formerly the leader in their field (See: Pan Am, Kodak.) BlackBerry is well-primed to prove that sentiment true, as the original smartphone was once the unquestioned leader in the field. Now, of course, BlackBerry is in a tailspin, and short a white knight swooping in and saving them, they will be out of cash by the fall of 2014, and completely kaput before the end of the year.

J.C. Penney Company (JCP)

Market Cap: $2.12 billion

2013 Performance YTD: -57.23 percent

Debt to Equity Ratio: 2.12

The biggest loser in the S&P 500 in 2013 has had a widely documented fall from grace, starting with the disastrous tenure of Ron Johnson and subsequent failure (so far) to turn things around. Brick-and-mortar retailers are in for a tough ride from here on out, and unless they are able to adapt to the shift to online shopping (as Best Buy (BBY) has done so well) they are potentially looking at the end of an era.

J.C. Penney will always be able to pay off their debt, because those giant stores happen to be sitting on a lot of valuable real estate. But you can’t get to the land underneath all those J.C. Penneys while they’re still alive.   

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.

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Results for jcp
Brian McGough
30 Oct 14 02:20:03
For those keeping score, $JCP gave us 10x more information in its Analyst meeting last month in just 3 hrs, than $KSS did yesterday in 7 hrs
30 Oct 14 02:07:59
VIICQ Closed up 75% Yesterday! Special Update: http://t.co/8A33lxh1RR $JCP $AQUM $WSGI
WallStreet Pennies
30 Oct 14 01:52:39
Dollar$OnPennies: $JCP Gallery View http://t.co/tlzSwRJTSo
29 Oct 14 22:40:27
Hot fashion for cooler days http://t.co/kxMEH38cX8 $SHLDV $JCP $PLCE
29 Oct 14 22:08:45
$MLCG closed up 166.67% today! Huge News: http://t.co/JxSMla9Afn $JCP $AQUM $WSGI
29 Oct 14 18:11:40
$MLCG closed up 166.67% today! Huge News: http://t.co/JxSMla9Afn $JCP $AQUM $WSGI
Marc Hav FX
29 Oct 14 13:55:31
$JCP J.C. PENNEY COMPANY INC. (UPDATED 29OCT2014) http://t.co/orC0z1LlhR
Marc Hav
29 Oct 14 13:55:30
$JCP J.C. PENNEY COMPANY INC. (UPDATED 29OCT2014) http://t.co/92iFwejHtE
Samuel Brown
29 Oct 14 13:32:21
$JCP One Reason J.C. Penney (JCP) Stock Is Down Today http://t.co/WT15hNhAgV
29 Oct 14 13:18:23
$JCP basing
29 Oct 14 12:59:31
Which $jcp analyst will come out & raise their target on $jcp to outperform & raise their PT to $12-15? $30 in 3 yrs
Blue Horseshoe
29 Oct 14 12:43:18
Poll of the day. Which dept. store sales guidance is more believable through 2017? $JCP +MSD or $KSS +2.5%?
Michael A. Levin
29 Oct 14 12:40:34
RT @philwahba: Kohl's Oct. sales "softer than expected", expects comp sales -1.4% this qtr- this after $JCP and Gap reported poor Sept $KSS…
Mark S Boone
29 Oct 14 12:37:51
$JCP Nice. I like that little Doji. Looking for a comfortable close. JMO.
Alexander Morris
29 Oct 14 12:34:13
$JCP: Exc 1DyHIGH=7.56, hits:5, ch:+1.9%, AtPivR1, tf:0111011, HiPctSht[30%:4d], DyVol:11.12M:0.7x:0.5x, DyRng:2.8%:0.8x:0.6x
Jeffrey Blake
29 Oct 14 12:01:22
$JCP J.C. Penney: A Review Of Future Capital Expenditures (JCP) http://t.co/78GUc3FJRc
29 Oct 14 11:19:09
the fed does as expected to QE, market is down because? $jcp by the dip markets rally hard tomorrow $spy
Erin Snow
29 Oct 14 11:04:57
Bought some $JCP $7.50
Investors Hangout
29 Oct 14 10:52:17
Jake13: $JCP Buy or Sell? Click here to find out if $JCP http://t.co/6PinCVb2FO
Investors Hangout
29 Oct 14 10:52:13
Jake13: $JCP Buy or Sell? Click here to find out if $JCP http://t.co/AO9caMAvSS
Phil Wahba
29 Oct 14 10:42:51
Kohl's Oct. sales "softer than expected", expects comp sales -1.4% this qtr- this after $JCP and Gap reported poor Sept $KSS what recovery?
29 Oct 14 10:41:07
Hottest in Twitter About $JCP (Penney J C Inc symbol JCP) on 10/29/2014 http://t.co/lu2xv3IwXp
29 Oct 14 10:36:36
$JCP Buy or Sell? Click here to find out if $JCP is a buy hold or sell. Watching these stocks. $MS $AVNR $COH http://t.co/EywaKDlUNX
29 Oct 14 10:33:44
Money was flowing into $jcp yesterday on the down day a rip higher is coming just like last year see 13-month chart http://t.co/Cp3zGo6Zq5
29 Oct 14 10:32:37
Subscribe to our Penny Stock Newsletter, for the best penny stock picks, for FREE: http://t.co/5DC8vbG515 $JCP $AQUM $WSGI
Mark S Boone
29 Oct 14 10:32:25
$JCP 30 Mins. Till FED moves the markets. Big Decisions today. Could be a hard move. End of QE. No interest rate change, good stuff. JMO
29 Oct 14 10:29:39
If $jcp announces a plan to close under performing locations & reduce head count the shares will probably double from the short squeeze
29 Oct 14 10:07:54
I love when shorts post old out of date articles on Twitter $jcp
29 Oct 14 10:04:01
@HarryWalkman not sure if you can read, but it is green $jcp
Harry Walkman
29 Oct 14 10:01:22
$JCP One Reason J.C. Penney (JCP) Stock Is Down Today http://t.co/ebANJAX8DA
29 Oct 14 09:58:31
Talk of $jcp being taken out could be true, but if management can see eps going positive in 2016 they would start the bidding at $15 or more
29 Oct 14 09:51:37
RT @HedgeyeRetail: $KSS "We have a giant amount of data -- more than all our competitors". Really? More than $M, $JCP, $TGT, $WMT?
29 Oct 14 09:50:10
$jcp upside is the greatest out of the group of $m $kss $shld, old CEO steadied the ship, new CEO will raise the sales, pun intended
Daily Contracts
29 Oct 14 09:48:01
Real-Time feed of company contracts, original agreements and executive updates from J. C. Penney $JCP http://t.co/MvHvXjt6Lg
29 Oct 14 09:47:35
$NFLX Stock Chart $NFLX Most recent stock chart and technical analysis. $IBIO $EDC $JCP $FSLR $CENX $IYT http: http://t.co/Vj773B7DA0
29 Oct 14 09:43:22
$jcp tangible book is at $8.53/shr when they turn around it will be trading at $30 in a straight line
MarketFace Tweets
29 Oct 14 09:42:55
$JCP showing some strength on an otherwise bleak day.
Investors Hangout
29 Oct 14 09:00:11
Emylers: $JCP Up to date company activities and other http://t.co/CqKQCjKSpw
Investors Hangout
29 Oct 14 09:00:05
Emylers: $JCP Up to date company activities and other http://t.co/nWpaqaX3x3
29 Oct 14 08:58:02
RT @HedgeyeRetail: Makes sense that $JCP is up on this $KSS analyst event. The JCP exec team in Plano has to be salivating as they listen t…
Donald van Deventer
29 Oct 14 08:58:00
RT @KamakuraCo: J C Penney 1 Year Default Probability 1.74%, Up 0.09% Today $JCP http://t.co/viNywqZWmU via @salphatrending
Mark S Boone
29 Oct 14 08:44:09
$JCP 32% Short on this sucker now. How did that work out the last time it was that high? Mmmhhhmmm...think about that one. Just Sayin. GL
Tyranny Soars!
29 Oct 14 08:41:38
RT @TALENTEDBLONDE: Whats the future look like for the retail C Suite? Find out w/ Talented and @carolmassar @BloombergRadio $JCP $AAPL h…
29 Oct 14 08:35:16
Whats the future look like for the retail C Suite? Find out w/ Talented and @carolmassar @BloombergRadio $JCP $AAPL http://t.co/6RO62eJEQg
29 Oct 14 08:31:34
$JCP is now at 32% short interest. These guys don't give up. Another rip and they might.
29 Oct 14 08:30:17
$XLK 50 Simple Moving Average $XLK Most recent stock chart and technical analysis. $EA $ACT $FB $PLUG $JCP $XL http://t.co/NcOFWypsBU
29 Oct 14 08:29:41
$JCP Up to date company activities and other important information about $JCP http://t.co/h4s6HTsHjs
29 Oct 14 08:29:08
What’s the future of the retail C suite? Find out with Talented and @Carolmassar @BloombergRadio $jcp $aapl http://t.co/6RO62eJEQg
29 Oct 14 08:15:23
$USO Current Price $USO Most recent stock chart and technical analysis. $VIPS $VTEQ $JCP $NUGT $DUST $INTC htt http://t.co/oX8wnbbinC
DayTrading Power
29 Oct 14 07:57:18
Live day trade room update on intraday positions: $GT 400 at 22.86 $MNKD 500 at 6.02 $JCP 1000 at 7.45
  +Follow December 10, 2013 8:44AM



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