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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. To read our full disclosure, please go to: http://www.equities.com/disclaimer


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Results for jcp
Venky Srinivasan
1 Sep 15 12:53:02
"@harmongreg: Is JC Penney breaking out? - Dragonfly Capital $JCP http://t.co/LNpa8RQSiX" one more time. http://t.co/vUltz222IT
Evan Medeiros
1 Sep 15 12:50:16
"@DDCapitalFund: $JCP nice RS and break out! The nerve of it on a day like this!" http://t.co/aGibkEnsqm
Bull Logic
1 Sep 15 12:49:13
$JCP turnaround real deal.
Marco Di Dionisio
1 Sep 15 12:48:06
$JCP nice RS and break out! The nerve of it on a day like this! http://t.co/QE6npAN3do
Drew Powers
1 Sep 15 12:42:56
$JCP - nice crack there
HadjPadjj
1 Sep 15 12:34:03
Thought is, with weak market, and getting rejected again at resistance $JCP gives up some of this move from last few days
Bull Logic
1 Sep 15 12:33:21
$JCP add
HadjPadjj
1 Sep 15 12:31:55
Took $JCP Weekly $9 puts for .12
Kimmy Witt
1 Sep 15 12:30:18
$JCP in green which was left for dead for long time in sea of red. Weird market...
too old to fold
1 Sep 15 12:21:25
@jimcramer The stocks I'm fishing for are all up today. $SWHC $CENT $FIX $JCP Maybe I'll get a bite later this week. Tide and moon aligned.
traderdrone
1 Sep 15 12:18:44
$JCP is the only resilient beauty in the sea of worry over economic slowdown news. $FB $AAPL we might shed a few points before a rebound IMO
Bull Logic
1 Sep 15 12:16:13
a-b-c-d $JCP p-l-e-a-s-e
Media Sentiment
1 Sep 15 12:15:07
$JCP received a new alert. Find out why at http://t.co/nZwqRf3BRT #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 395
Leni
1 Sep 15 12:13:58
$JCP add to long terrific performance in this tape. Poised for a breakout @mcuban
Paul Allen
1 Sep 15 11:34:07
RT @CBOE: DRJ @CBOE_TV: $VIX spikes 11%. Unusual activity: $JCP calls, @optionmonster buying $CVC calls http://t.co/ngZxhQICuy http://t.co/…
Quantpost $JCP
1 Sep 15 11:32:42
$JCP News: "DRJ @CBOE_TV: $VIX spikes 11%. Unusual activity: $JCP calls…" http://t.co/8NapO9JrWz Analyze: https://t.co/FoE1IwKFVo
Quantpost Service
1 Sep 15 11:32:41
$JCP News: "DRJ @CBOE_TV: $VIX spikes 11%. Unusual activity: $JCP calls…" http://t.co/BfbI34FuNB Analyze: https://t.co/qcTQBF3nsr
CBOE
1 Sep 15 11:32:41
DRJ @CBOE_TV: $VIX spikes 11%. Unusual activity: $JCP calls, @optionmonster buying $CVC calls http://t.co/ngZxhQICuy http://t.co/0gez6iW0yr
Qui Bono?
1 Sep 15 11:30:15
on a day like today, the only thing green on my watch list is $JCP !?!?
Cutlass
1 Sep 15 10:59:56
RT @WallStJesus: TOP CALL ACTION TODAY IN $CVC $JCP - $BEN (LONG TERM) --- ALL THE SHARP PUT ACTION IN ETFS $QQQ $IWM $SPY
Dr.Dick Nelson cmt
1 Sep 15 10:57:40
RT @CBOE_TV: DRJ video: $VIX spikes over 11% Unusual activity: $JCP calls, @optionmonster buying $CVC calls http://t.co/Et8pnNFGAD http://t…
Analyst Actions
1 Sep 15 10:54:02
$JCP: Analyst action by Imperial Capital on JC Penney Co: http://t.co/VKaA4xDANU http://t.co/ocWsJc3VDh
JT Freeze
1 Sep 15 10:49:35
RT @WallStJesus: TOP CALL ACTION TODAY IN $CVC $JCP - $BEN (LONG TERM) --- ALL THE SHARP PUT ACTION IN ETFS $QQQ $IWM $SPY
JE$US
1 Sep 15 10:48:25
TOP CALL ACTION TODAY IN $CVC $JCP - $BEN (LONG TERM) --- ALL THE SHARP PUT ACTION IN ETFS $QQQ $IWM $SPY
MarketClub
1 Sep 15 10:46:24
Today's #MarketMover is the J. C. Penney Company Inc. (NYSE:JCP) http://t.co/6wAGvyXslp $JCP #Stocks
BlockTradeAlert
1 Sep 15 10:44:51
BLOCK TRADE: $JCP 611,000 shares @ $9.37 [13:44:51]
Jeff Ki
1 Sep 15 10:42:17
RT @OptionsHawk: $JCP hot w/ Sep 9 calls
TradeXchange
1 Sep 15 10:40:19
$JCP: Option Activity and Morning Strength: http://t.co/96XCV5Jhrn
Stephen s
1 Sep 15 10:36:05
RT @BoilerWarrior: http://t.co/J58EN2Hzp9 IN PLAY: $HJOE $AUY $BABL $HASC $JCP $PTN $AMD $CHK $IBN $HCTI $SFUN $KGC $AURI $NBG http://t.co/…
CBOE TV
1 Sep 15 10:35:52
DRJ video: $VIX spikes over 11% Unusual activity: $JCP calls, @optionmonster buying $CVC calls http://t.co/Et8pnNFGAD http://t.co/HmON34snfH
Anacott Steel
1 Sep 15 10:25:35
Is it any wonder that $JCP is now out-performing in this terrible tape?Of course; why it's happening. @WallStJesus kept noting #sharps buys.
Jann Gobble
1 Sep 15 10:25:19
$JCP News: Top 10 Department Stores in Digital http://t.co/rzZtejXOEw
Anthony Tedla
1 Sep 15 10:21:53
J.C. Penney makes a run towards double digits $JCP http://t.co/idM5trpxQd
Bull Logic
1 Sep 15 10:16:56
RT @MelissaLeeCNBC: Ha! I didn't notice that big move in $JCP! https://t.co/Euwzx0seIh
TP Strategic Partner
1 Sep 15 10:15:02
$JCP Lower fuel costs adding to lower logistics costs as well as helping the consumer. A strong dollar is helping improve margins
Ani Anirudhan
1 Sep 15 10:13:47
RT @WallStJesus: $JCP CATCHING A FEW CALL SWEEPAROOS TODAY ... http://t.co/I3sn9g0jLS
Leni
1 Sep 15 10:12:55
$JCP defying gravity +3.22%
Jocelyn Barr
1 Sep 15 10:06:45
Whoa, who saw that $JCP strength coming on a day like today?
Melissa Lee
1 Sep 15 10:06:23
Ha! I didn't notice that big move in $JCP! https://t.co/Euwzx0seIh
EPS Trader
1 Sep 15 10:05:13
$JCP is breaking out above $9.39 with positive earnings and a target of $11.57.
King of investments
1 Sep 15 09:53:00
J.C. Penney makes a run towards double digits http://t.co/crpxKlLQI3 $JCP
Cutlass
1 Sep 15 09:49:18
RT @SwatOptions: $JCP  J. C. Penney Company, Inc. has been outperform market today with stock move higher from 8.94$... http://t.co/nb1wgsz…
Media Sentiment
1 Sep 15 09:47:20
$JCP received a new alert. Find out why at http://t.co/nZwqReM0tj #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 274
JJGalea
1 Sep 15 09:46:21
RT @BigOptions: Another 2k $JCP Sep15 9c added here at .71 http://t.co/BXIfYlOsuZ
JJGalea
1 Sep 15 09:46:19
RT @WallStJesus: $JCP CATCHING A FEW CALL SWEEPAROOS TODAY ... http://t.co/I3sn9g0jLS
Swat Options Trading
1 Sep 15 09:45:46
$JCP  J. C. Penney Company, Inc. has been outperform market today with stock move higher from 8.94$... http://t.co/nb1wgszyMH
Analyst Actions
1 Sep 15 09:43:01
$JCP: Analyst action by Imperial Capital on JC Penney Co: http://t.co/VKaA4xDANU http://t.co/1t2GBMuP86
Me Llamo Mark
1 Sep 15 09:40:42
A healthier $JCP and a weakening economy/extended consumer are total opposites
Trent J.
1 Sep 15 09:39:33
RT @WallStJesus: $JCP CATCHING A FEW CALL SWEEPAROOS TODAY ... http://t.co/I3sn9g0jLS
DJ Olive
1 Sep 15 09:39:06
RT @MarketCurrents: J.C. Penney makes a run towards double digits http://t.co/K2yQn2VjFD $JCP
				
				
  +Follow December 10, 2013 8:44AM
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