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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
Jacob Wolinsky
4 Mar 15 14:16:19
@17thStCap He made up "EBITARP" with $JCP a few years ago (didnt work out well) and we know he loves $SODA so figured worth a guess
Stock Rocket
4 Mar 15 14:15:20
Thanks to the 5 pro traders at http://t.co/5jbX6lWXsj for an amazing week! My win rate was 80%. So sweet. $ANR $JCP $AU $HL
dailystockplays.com
4 Mar 15 13:35:52
NR7 ID Stocks For 3/5/15 http://t.co/y4HiW3AKQU $NRF $JCP $XLU $NBR $ARCP $AES $NE $OCN $MNKD $PAL $CNP $FE $EXEL $ROSE $MHR $PCG $POT $KSS
#HelpYouGetGAINS
4 Mar 15 13:27:20
#Stocks to watch from The Value Line Investment Survey: $WTW $JCP $HLF $OLED $TUMI $CLNE $MNST $ROST $GPS $DGI $ARUN http://t.co/2kliMNscru
PolgarStocks
4 Mar 15 13:15:47
$TSO Opinions Updated Wednesday, March 4, 2015 4:07:16 PM $JCP $TSLA $NBG $DXJ http://t.co/cj03yRGg6l
Uncle Omer
4 Mar 15 13:03:02
@Ramon456 This will be trivial a year from now when $JCP has burned all equity, pointlessly trying to survive while Relevant as RadioShack.
Mark S Boone
4 Mar 15 12:55:57
$JCP Closing flat again today. Steady accumulations going on. Inverse H&S still intake. GLTA. JMO
Neal
4 Mar 15 12:35:11
RT @StockSignaling: Top Upgrades: $LL $MDR $PANW $NXPI $AZO $C $NE $AXP $NFLX $BBY $MCD $ROSE $GPS $GOOG $JCP http://t.co/DEd0xkdNq4 #walls…
Christopher
4 Mar 15 12:35:10
RT @StockSignaling: Movers and Shakers: Trading on Major News: $AMBA $ENDP $OREX $NXPI $SWHC $ANF $PANW $V $ARCP $MNST $W $FSL $ARUN $CAH $…
CantDoIt
4 Mar 15 12:35:08
RT @StockSignaling: Upgraded Stocks Trading in a New Range: $TSL $MCD $LL $PANW $AA $JCP $ECOL $JASO $NE $MDR $FSLR $AMPE $AMAG $PTX $MWW h…
Ryan Ferguson
4 Mar 15 12:34:49
Into tomorrow $ABBV $TWTR $JCP
Stock Signaling
4 Mar 15 12:31:03
25 Stocks To Watch: http://t.co/DEd0xkdNq4 : $TSL $MDR $PANW $LL $NXPI $AZO $C $NE $AMAG $AXP $JCP $BBY $ECOL $AA $MCD #analytics #markets
Uncle Omer
4 Mar 15 12:25:03
@jimcramer Greatest challenge for Shorts is waiting out $JCP Longs who cling to deluded theses all the way down in face of mortal wounds.
Langan Stocks
4 Mar 15 12:16:41
$SCTY Stock Forum Updated Wednesday, March 4, 2015 3:03:19 PM $BABA $EBR $KR $JCP http://t.co/yd3OUoKHL0
Ryan Ferguson
4 Mar 15 12:15:58
Long $JCP 7.95
PolgarStocks
4 Mar 15 12:13:12
$RAX Stock Price Updated Wednesday, March 4, 2015 3:07:16 PM $SRPT $JCP $KO $ITB http://t.co/eVqLvTdIqJ
JALXR
4 Mar 15 11:46:45
$JCP was supposed to drop 30% according to analyst. I think they always over exaggerate.
Stock Signaling
4 Mar 15 11:31:02
Upgraded Stocks Trading in a New Range: $TSL $MCD $LL $PANW $AA $JCP $ECOL $JASO $NE $MDR $FSLR $AMPE $AMAG $PTX $MWW http://t.co/DEd0xkdNq4
Stevie B
4 Mar 15 11:28:20
@Honolulu_Trader sold $JCP 7.94 from 7.87 don't like market conditions so...
IH News Desk
4 Mar 15 11:15:49
$TM Recent News Updated Wednesday, March 4, 2015 2:11:13 PM $JCP $SPDC $XLU $TBT http://t.co/7q01b404VK
Leonel Álvarez
4 Mar 15 11:14:07
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Stock Signaling
4 Mar 15 11:01:05
Movers and Shakers: Trading on Major News: $AMBA $ENDP $OREX $NXPI $SWHC $ANF $PANW $V $ARCP $MNST $W $FSL $ARUN $CAH $JCP #nyse #spy #mkt
lookn4wins
4 Mar 15 10:59:28
JCP +0.51% Stock Charts $JCP J.C. Penney Co. Inc. (NYSE) Any opinions on JCP? Please reply to this post. Last http://t.co/K710cTiPOL
Stevie B
4 Mar 15 10:59:03
$JCP is holding up well #stocks
Stockjock
4 Mar 15 10:57:36
New position $Jcp today for portfolio 200k shares $7.88 avg
Stockjock
4 Mar 15 10:56:51
@zman0002 In at 7.88avg $jcp 200k new position
Breaking News Now
4 Mar 15 10:56:04
$JCP: J C Penney Company Inc (NYSE:JCP) Replacing the Winter Stock: http://t.co/53t1swUAKI
Trader News Daily
4 Mar 15 10:49:34
Wow http://t.co/PeRPkYu8Uk just posted last weeks results. +429%. Crazy. They offer a free trial too. $SD $JCP $FNMA $MCP $DRYS $ZNGA
Stock Signaling
4 Mar 15 10:31:03
Top Upgrades: $LL $MDR $PANW $NXPI $AZO $C $NE $AXP $NFLX $BBY $MCD $ROSE $GPS $GOOG $JCP http://t.co/DEd0xkdNq4 #wallstreet #watchlist #mkt
Cabin Parker
4 Mar 15 10:29:30
$JCP Poor bears! Looks like they can't find anymore stock to short. https://t.co/t4VZdMnL94
TalkMarkets
4 Mar 15 10:27:31
#Retail Results Lift Consumer #DiscretionaryEarnings To 10.7% $HD $LOW $WMT $TGT $M $JCP $ANF $ARO $AEO http://t.co/vckTCSK0jF
Estimize
4 Mar 15 10:14:45
Retail Results Lift Consumer Discretionary Earnings to 10.7% $SPY $ARO $AEO $ANF $JCP $M $LOW $HD http://t.co/6kCeXzrXIo
Langan Stocks
4 Mar 15 10:12:43
$GLD Financials Updated Wednesday, March 4, 2015 1:03:43 PM $JCP $SSO $ESI $BABA http://t.co/iNlNne2hZe
iHangout
4 Mar 15 10:12:14
Lucky Jimmy: Stock Charts: JCP Stock up +0.25% percent Today $JCP High is at http://t.co/gk9CsQrVvx
PolgarStocks
4 Mar 15 10:09:38
$XIV Short Sales Updated Wednesday, March 4, 2015 12:07:20 PM $WMIH $JCP $MCP $CELG http://t.co/kMQjShYu5D
Lucky Jimmy
4 Mar 15 10:09:30
JCP Stock up +0.25% percent Today $JCP High is at 8.01 and the Low 7.84 with current volume of 1,952,080. J.C. http://t.co/S5EWvHLyq4
Lucky Jimmy
4 Mar 15 10:09:07
$JCP JCP up +0.25% percent Today $JCP Stock High is at 8.01 and the Low 7.84 with current volume of 1,952,080. J.C. http://t.co/6ezjQYcOwp
Stock Signaling
4 Mar 15 10:01:03
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Sparti
4 Mar 15 09:44:54
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Ramon
4 Mar 15 09:39:49
$JCP still hasn't flushed all the sellers yet. Needs another day or two for upside. http://t.co/GUGdzi4BZH
Capital Market Labs
4 Mar 15 09:18:13
$JCP Revenue and Valuation Trends #CML http://t.co/RAfztp0fdf
SmallCaps
4 Mar 15 09:10:12
Tip #4 How to identify a HOT SECTOR? http://t.co/ewe2BDWPGF $UGAZ $JCP $PBYI $UNG $DGLY
leahanne
4 Mar 15 08:58:10
Volume Alert - JCP 7.93 J.C. Penney Company Inc $JCP Hit a high today of 8.01 Closing the day 10:30 at 7.93 +0 http://t.co/gI8KcWrZye
leahanne
4 Mar 15 08:57:48
$JCP Volume Alert - JCP Stock 7.93 J.C. Penney Company Inc $JCP Hit a high today of 8.01 Closing the day 10:30 at 7 http://t.co/A1F1jnTqqM
The Double Dip
4 Mar 15 08:38:43
RT @StockSignaling: Visual Stock Comparison Tool: http://t.co/DEd0xkdNq4 : $NXPI $C $PANW $MDR $JCP $LL $NE $VLO $AA $BLOX $ROSE $CPN $GTLS…
Stocks News&Markets
4 Mar 15 08:20:01
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Langan Stocks
4 Mar 15 08:10:16
$GGAL Percent Change Updated Wednesday, March 4, 2015 11:03:19 AM $JCP $MO $ZIOP $GLD http://t.co/Agvl2bCbtC
M F M
4 Mar 15 08:08:46
$JCP another Dog day for JCP, Fairytale needed; Peter Pan are you there?
Sleek Money
4 Mar 15 08:05:12
Vetr Inc. Upgrades J C Penney Company to Hold $JCP http://t.co/lFGBVNPHs3
Stockjock
4 Mar 15 07:19:30
establishing a new 200k position in portfolio of $jcp today working at prices near yest close- own in trading account already
				
				
  +Follow December 10, 2013 8:44AM
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