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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
Tuan
30 Sep 14 07:53:43
$JCP lower high or break out here..
Trader News Daily
30 Sep 14 07:38:11
http://t.co/PeRPkYu8Uk premium membership ranked #1 for gains. 483% last week. Related: $FNMA $RAD $FITX $AMD $CPRX $ARCP $SAN $CNET $JCP
Jeff
30 Sep 14 07:34:09
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Steve Mahoney
30 Sep 14 07:26:08
RT @SeekingAlpha: GoPro: On The Way To A 52-Week Low http://t.co/UECXSSJRG6 $GOOGL $GRMN $JCP $MSFT $SNE $AAPL $GPRO
Home Building Feed
30 Sep 14 07:25:30
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Retail Stores Feed
30 Sep 14 07:25:29
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Hotel & Resort Feed
30 Sep 14 07:25:29
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Telco Equipment Feed
30 Sep 14 07:25:29
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Tech Industry Feed
30 Sep 14 07:25:28
App... $anr $jcp $aapl $lea $gm $vz $vod $dhi $aee $dyn $czr $wynn $mgm $bac #TechIndustry http://t.co/j5vRdBZDQs http://t.co/Lc3h9xA6Gc
Major Banks Feed
30 Sep 14 07:25:27
Apple Faces Damni... $anr $jcp $aapl $lea $gm $vz $vod $dhi $aee $dyn $czr $wynn $mgm $bac http://t.co/JTqAapjjXe http://t.co/oqRjFPsWfG
M D
30 Sep 14 07:12:21
Took a week off, let's fill some gaps now baby! $AAPL $TWTR $OPK $GTAT $JCP
Adam
30 Sep 14 07:08:00
RT @OpenOutcrier: $JCP Real Oct 9.5 puts getting a lot of action. 5000 on day.
Open Outcrier
30 Sep 14 06:57:12
$JCP Real Oct 9.5 puts getting a lot of action. 5000 on day.
LCD News
30 Sep 14 06:55:08
JC Penney #highyield bonds edge off lows; Moody's upgrades outlook on credit $ http://t.co/tGCH4lgLLy $JCP #hy #hybonds
MatthewTae
30 Sep 14 06:45:57
Closed $JCP options positions. Bought 5 Oct 3, 10 puts to close for 26. Sold 3 Oct 10, 10 calls to close for 42.
Bidness Etc
30 Sep 14 04:48:32
Bidness Etc analyzes the reasons for the Moody's upgrade and why investors should remain cautious on the stock- http://t.co/j5R5A69X8f $JCP
takethisbet
30 Sep 14 01:54:05
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Stockaholics
29 Sep 14 23:40:17
$VOIS gained 218.52% in less than 3 weeks, after our Penny Stock Alerts! Major Update: http://t.co/HglCNdSVSO $JCP $AQUM $WSGI
Retail Stores Feed
29 Sep 14 21:37:01
Anti-Gay Baker Brought To Tears Over Bakery Closing $jcp http://t.co/A9dsVReygi http://t.co/zbw2vuIpcg
Consumer Services
29 Sep 14 21:37:00
Anti-Gay Baker Brought To Tears Over Bakery Closing $jcp #consumerservices http://t.co/g2ALQ5YpVj http://t.co/1S2pIrnttg
strader55
29 Sep 14 20:04:44
nlightn: $JCP,...J.C. Penney outlook hiked at Moody's - nlightn http://t.co/LsFcAKtneX
Perfor Mance
29 Sep 14 20:01:08
Option Millionaires: nlightn: $JCP,...J.C. Penney outlook hiked at Moody's http://t.co/4AfjF4xljm
Stockaholics
29 Sep 14 14:45:40
$VOIS gained 218.52% in less than 3 weeks, after our Penny Stock Alerts! Major Update: http://t.co/LcBxWgdLUh $JCP $AQUM $WSGI
Mark S Boone
29 Sep 14 14:36:14
$JCP While everyone was staring at the stock....they sneaked ya! LOL!! Opps! Always watch the bonds and the options. They always know 1st.
Todd Ingersoll
29 Sep 14 13:56:39
RT @ACInvestorBlog: $JCP Moody's Affirms Ratings on JC Penney; Outlook Raised from Negative to Stable
Greg Joslyn
29 Sep 14 13:55:52
RT @qbeatsnews: Moody's lifts negative outlook on retailer, citing refi, performance: http://t.co/ZRiMVzCeTH $JCP #HY #retail
Media Sentiment
29 Sep 14 13:55:04
$JCP received a new alert. Find out why at http://t.co/5udYd0Ofs6 #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 461
Antonio Costa
29 Sep 14 13:54:29
$JCP Moody's Affirms Ratings on JC Penney; Outlook Raised from Negative to Stable
Quantpost Service
29 Sep 14 13:53:08
$JCP News Alert: http://t.co/fO76YCTyqC Updated options view: https://t.co/x5uunD2KP3 All options views: https://t.co/nRl8BLoEir
MarketCurrents
29 Sep 14 13:53:07
J.C. Penney outlook hiked at Moody's http://t.co/c1js864vuj $JCP
Henk Huising
29 Sep 14 13:51:20
Moody's verhoogt outlook JC Penney naar Stabiel $JCP
qbeats news
29 Sep 14 13:51:08
Moody's lifts negative outlook on retailer, citing refi, performance: http://t.co/ZRiMVzCeTH $JCP #HY #retail
Media Sentiment
29 Sep 14 13:50:20
$JCP received a new alert. Find out why at http://t.co/5udYd0Ofs6 #stocks #daytrading #trading #mkt #NYSE #NASDAQ #markets 460
SIAnalystWire
29 Sep 14 13:48:18
Moody's Raises Outlook on J.C. Penney $JCP to Stable; Ratings Affirmed http://t.co/sqcRwDReiI
DR JAMES CABOT
29 Sep 14 11:41:44
RT @RiskReversal: ICYMI: Friday's Notable Options Activity: $SPY, $VIX, $HYG, $JNS, $JCP, $AVP http://t.co/UNKUW1cKgU @EnisTaner
Dan Nathan
29 Sep 14 11:39:14
ICYMI: Friday's Notable Options Activity: $SPY, $VIX, $HYG, $JNS, $JCP, $AVP http://t.co/UNKUW1cKgU @EnisTaner
Investors Hangout
29 Sep 14 10:23:10
Emylers: $JCP Up to date company activities and other http://t.co/bu9y4TB6RT
Investors Hangout
29 Sep 14 10:23:07
Emylers: $JCP Up to date company activities and other http://t.co/Dfi8bpHRzP
danrocks
29 Sep 14 10:11:32
$NEM Starting to get interesting $XLK $AA $DXJ $MU $JCP http://t.co/FNYLGuqPxD
iHangout
29 Sep 14 10:09:11
http://t.co/vVojvVrNNL Emylers: The Launch Pad: $JCP Up to date company activities and other http://t.co/JNa7V3ccax
Emylers
29 Sep 14 10:06:50
$JCP Up to date company activities and other important information about $JCP http://t.co/7MEtjuRBMc
Mike
29 Sep 14 09:21:48
Last time I checked $JCP doubled in price with there "intern" CEO so be cautious in selling $APP as opportunity may be in front of ur eyes!
Stockaholics
29 Sep 14 09:10:54
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Mark S Boone
29 Sep 14 09:00:13
$JCP Consolidating. Going to pop or drop. My bet is on pop. JMO
James Milkavich
29 Sep 14 08:50:55
@MarkBoone17 $JCP is going to pop closer to October 10th!
Mark S Boone
29 Sep 14 08:34:11
$JCP There was a Buyer of 12,300 of the Oct10th 10 calls for 0.26 in the afternoon of Friday. Yeah....think about that.
Investors Hangout
29 Sep 14 08:10:36
chartguy89: RSX Stock Chart $RSX $SDS $JCP $USLV http://t.co/iFYUIT3Esj
Investors Hangout
29 Sep 14 08:09:57
chartguy89: RSX Stock Chart $RSX $SDS $JCP $USLV http://t.co/mYGTUiYj84
Kooler Aid
29 Sep 14 08:04:45
$MLNX $SHLD squeeze mode // $JCP $BBRY usual suspects also on watch
chartguy89
29 Sep 14 07:57:22
RSX Stock Chart $RSX $SDS $JCP $USLV http://t.co/1UV0vXUv2T http://t.co/4wjLkYlJxu
				
				
  +Follow December 10, 2013 8:44AM
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