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What Companies Could Go Under in 2014?

  +Follow December 10, 2013 8:44AM
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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
Stock Relay
22 Oct 14 20:37:47
$CYBR Message Board Posts Click Here: http://t.co/ZEVAnZJRLw Also See: $FNMA $BIDU $JCP $SSYS ~
Stock Relay
22 Oct 14 17:23:38
$BIIB Stock Forum Click Here: http://t.co/V11lvt0G0B Also See: $MLNX $SOXS $CREE $JCP ~
ZornTrader
22 Oct 14 17:01:30
RT @StockSignaling: After Hours Volume Leaders: $YELP $EMC $CREE $HPQ $MAT $TXN $KEY $HST $ODP $JCP $HAL $TSLA $AVNR $FSP $RDN http://t.co/…
Joey
22 Oct 14 17:01:12
RT @StockSignaling: After Hours Volume Leaders: $YELP $EMC $CREE $HPQ $MAT $TXN $KEY $HST $ODP $JCP $HAL $TSLA $AVNR $FSP $RDN http://t.co/…
Stock Signaling
22 Oct 14 17:01:07
After Hours Volume Leaders: $YELP $EMC $CREE $HPQ $MAT $TXN $KEY $HST $ODP $JCP $HAL $TSLA $AVNR $FSP $RDN http://t.co/Vtx6dLy0Nw #daytrader
Brian Sozzi
22 Oct 14 16:38:17
!! $JCP “@jcpenney: @BrianSozzi Thank you! :)”
Timothy Connolly CFA
22 Oct 14 16:03:49
RT @Briefingcom: $JCP: J. C. Penney announces defeasance of 6.875% medium-term notes due 2015 http://t.co/jRVXvXrmkO
Briefing.com
22 Oct 14 16:02:51
$JCP: J. C. Penney announces defeasance of 6.875% medium-term notes due 2015 http://t.co/uZw4NQNSI8
Stock Moo
22 Oct 14 14:54:56
$jcp: JCPenney Announces Defeasance of 6.875% Medium-Term Notes due 2015 http://t.co/ifS6j0qyj1
Stock Moo
22 Oct 14 14:54:47
$jcp: JCPenney Announces Defeasance of 6.875% Medium-Term Notes due 2015 http://t.co/cS66wdsa1n
Stock Relay
22 Oct 14 14:54:20
$ACHN Prev Close Click Here: http://t.co/eEP9XKugPy Also See: $SQQQ $ERX $EPI $JCP ~
Cloud Chipotle
22 Oct 14 14:44:48
@JacobWolinsky @SconnieTrader @BrattleStCap $KSS+ $JCP+ $SHLD, $AOL is the official tech vendor/message board supplier apparently
Jacob Wolinsky
22 Oct 14 14:43:58
@SconnieTrader @CloudChipotle @BrattleStCap I thought #shitco was $JCP and $SHLD, AOL joined for 3 way merger?
Stockaholics
22 Oct 14 14:28:56
Our Penny Stock Picks Gained 371% In 2 Weeks! Get Our Next Pick Early: http://t.co/z2noBUWrEP $JCP $AQUM $WSGI
4-traders.com
22 Oct 14 14:05:14
J C Penney : JCPenney Announces Defeasance of 6.875% Medium-Term Notes due 2015 http://t.co/veCIY48l6N $JCP
$Stocknewsalerts
22 Oct 14 14:02:44
$JCP JCPenney Announces Defeasance of 6.875% Medium-Term Notes due 2015 From our Stock News Alerts App
BV Services
22 Oct 14 14:00:59
$JCP JCPenney Announces Defeasance of 6.875% Medium-Term Notes due 2015.. http://t.co/5vQqitIM38
Jeff
22 Oct 14 13:24:27
Gas prices at the pump should fall below $2.75 in November, which will be great for retailers $jcp
Jeff
22 Oct 14 13:15:06
$jcp closed below $7.50 chart is showing the MAcD could turn positive this week, low gas prices r a positive 4 all retail not in estimates
Mark S Boone
22 Oct 14 12:45:16
$JCP Market saying, NOT TODAY. Support failed. Need some volume later in the week or she eats dirt again. JMO
Neal Bernard
22 Oct 14 11:57:15
@wellsmontague @RAYSHOWPAY $JCP holding 7.5 support. Looking for stair step to 8+
Investors Hangout
22 Oct 14 11:25:57
clayton: $JCP 7.73 http://t.co/28JqhJmHIh
Investors Hangout
22 Oct 14 11:25:47
clayton: $JCP 7.73 http://t.co/ToQrTCJul9
Zero Filter
22 Oct 14 11:12:27
$ZQK daily looks like a #DC skater's board ramp $TGT $JCP $M #cnbcfastmoney #seekingalpha #Consac
iHangout
22 Oct 14 11:05:17
http://t.co/vVojvVrNNL clayton: Estrella's Sizzling Hot Stock Plays: $JCP 7.73 http://t.co/bEhtvGeatq
clayton
22 Oct 14 11:02:25
$JCP 7.73 http://t.co/0gFz3HWLNJ
Susan Schulte
22 Oct 14 10:51:40
RT @StaceyRetail: thanks $M has been great run +30% but your friends are scaring me. when the street breaks up with you i will be back for …
Stacey Widlitz
22 Oct 14 10:43:30
thanks $M has been great run +30% but your friends are scaring me. when the street breaks up with you i will be back for you $JCP $GPS $URBN
Jeff
22 Oct 14 10:42:20
$jcp MACD should flash a bullish crossover tomorrow or today if this runs up & cause a run up to $8
maximus
22 Oct 14 10:30:07
$jcp ..strong like bull . really ?
Stockaholics
22 Oct 14 10:28:40
Our Penny Stock Picks Gained 371% In 2 Weeks! Get Our Next Pick Early: http://t.co/z2noBUWrEP $JCP $AQUM $WSGI
Investors Hangout
22 Oct 14 10:18:27
danrocks: $QLD On Watch $BB.TO $BIDU $JCP $XHB $DIS http://t.co/kBOLnetw8i
Investors Hangout
22 Oct 14 10:18:21
danrocks: $QLD On Watch $BB.TO $BIDU $JCP $XHB $DIS http://t.co/UvYJjbWUsF
danrocks
22 Oct 14 10:11:41
$QLD On Watch $BB.TO $BIDU $JCP $XHB $DIS http://t.co/bnxW0oCAsl
Investors Hangout
22 Oct 14 09:47:33
DennyT: CELG Bloomberg $CELG $IYT $T $JCP $TQQQ http://t.co/WPRXsmqr0H
Investors Hangout
22 Oct 14 09:47:13
DennyT: CELG Bloomberg $CELG $IYT $T $JCP $TQQQ http://t.co/B7mrDQbDoR
TraderBlood
22 Oct 14 09:37:36
$CREE wait on any possible buyback... It would be good to see a $ESI / $JCP run up with short covering.
DennyT
22 Oct 14 09:20:48
CELG Bloomberg $CELG $IYT $T $JCP $TQQQ Sell?,Candlesticks,Current Price,News,Showing on my streamers Stock Qu http://t.co/xgE0oTPakW
HadjPadjj
22 Oct 14 09:11:32
$JCP 60 Min chart looks like it wants to pop soon now after bottoming out.
HadjPadjj
22 Oct 14 08:59:05
Took some $JCP Nov Weekly $8 calls at .20
Mark S Boone
22 Oct 14 08:51:01
$JCP Flagging. Not stable though....let's see if it follows through. JMO.
lookn4wins
22 Oct 14 08:30:21
$VSR Stock Chart $VSR Most recent stock chart and technical analysis. $SDRL $XLK $JCP $SSO $CLF $CSX http://st http://t.co/y5pUYSiif9
BlockTradeAlert
22 Oct 14 08:26:27
BLOCK TRADE: $JCP 320,000 shares @ $7.70 [11:26:26]
TP Strategic Partner
22 Oct 14 08:09:52
$JCP $BBRY $F $GLW We've added to our stakes in all 4 of these stocks on option exercise
Investors Hangout
22 Oct 14 07:44:36
danrocks: $JCP Buzz $SIX $XLE $PSID $GDX $GOOG http://t.co/EeRVjIEScK
Investors Hangout
22 Oct 14 07:44:36
danrocks: $JCP Buzz $SIX $XLE $PSID $GDX $GOOG http://t.co/IRMngMmqys
danrocks
22 Oct 14 07:30:08
$JCP Buzz $SIX $XLE $PSID $GDX $GOOG http://t.co/wEltwSgYeo
toptrader42
22 Oct 14 07:21:43
@toptrader42 The Street is finding out about Thinking Alpha next big Trader Network http://t.co/KNFlIiYLwT $JCP $C
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22 Oct 14 07:16:17
@toptrader42 The Street is finding out about Thinking Alpha next big Trader Network http://t.co/KNFlIiYLwT $JCP $C
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22 Oct 14 07:11:15
@chartguy89 The Street is finding out about Thinking Alpha next big Trader Network http://t.co/KNFlIiYLwT $JCP $C
				
				
  +Follow December 10, 2013 8:44AM
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