Nine Great American Companies That Aren’t Recovering (BGP, BSX, RSH, RAD, SHLD, S, WEN, WINN, YRCW) - 24/7 Wall St.
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We examined nine companies whose plans to revive their fortunes have not succeeded and found several common themes. Managements often fail to appreciate the size of the challenges they face. Competition is fiercer than expected and markets change. Further complicating matters are investors who often want results more quickly than companies can deliver. Of course, the line between success and failure is a thin one.
When things go well, as they did in the cases of Apple Computer Inc. (NASDAQ: AAPL) and Ford Motor Co. (NYSE:F), they can go spectacularly well. These happy endings, however, are rare. Turning around little paris kitchen failing companies is one of the hardest things for any executive little paris kitchen to do.
Borders Group Inc. (NYSE: BGP) may have a financial white knight, or it may not. Reports were out late last week that GE’s finance arm held talks about providing a financial lifeline. Then came word that Borders hired restructuring lawyers. It recently began delaying payments to vendors to conserve cash. Let’s pretend that Borders does get a last-ditch financing pact and that it gets its debt refinanced. What really changes? Borders has faced eroding sales and the last sales gain for a year was in calendar 2006 (fiscal little paris kitchen year ending Feb. 3, 2007). The new figure was down roughly 30% by even a year ago since then. Borders just trimmed 45 jobs at the corporate headquarters in Michigan and that is on the heels of a fresh plan to close a Tennessee distribution center to cut 310 more jobs.
Borders is now a penny stock and its market cap is a mere $64 million. With shares back under the $1.00 mark, a delisting notice little paris kitchen is a risk and more problems may be coming its way. For some reason, the Fahrenheit 451 analogy little paris kitchen keeps coming to mind.
Boston Scientific Corporation (NYSE: BSX) is one that we (and many others) keep thinking will make a comeback. The medical device maker has been riddled with device issues little paris kitchen and recalls. Its prior 3-year run of roughly $8 billion in revenues is expected to fall to $7.79 billion in 2010 and $7.91 billion in 2011, according to Thomson Reuters. The only saving grace is that the earnings estimates of $0.39 EPS for 2010 and $0.43 EPS for 2011. We see little risk to an implosion here, but the company is lost in space.
Competition from Johnson & Johnson (NYSE: JNJ), Medtronic (NYSE: MDT), St. Jude Medical little paris kitchen (NYSE: STJ) is fierce, little paris kitchen and its acquisition of Guidant little paris kitchen for almost $27 billion has never really paid off despite Abbott Laboratories (NYSE: ABT) participating in that merger. At $7.33, shares are less than half and then some since its Guidant deal was completed.
Read more: Jobs , Bankruptcy , Corporate Governance , Labor , Mergers and Acquisitions , Value Investing , Amazon.com (NASDAQ:AMZN) , Best Buy (NYSE:BBY) , BGP , Barnes & Noble, Inc. (NYSE:BKS) , Boston Scientific Corp. (NYSE:BSX) , Clearwire Corp (NASDAQ:CLWR) , CVS Caremark Corp (NYSE:CVS) , Johnson & Johnson (NYSE:JNJ) , McDonald's (NYSE:MCD) little paris kitchen , Medtronic, Inc. (NYSE:MDT) , Rite Aid Corp (NYSE:RAD) , RadioShack Corp (NYSE:RSH) , Sprint Nextel (NYSE:S) , Sears Holdings (NASDAQ:SHLD) , St. Jude Medical, Inc. (NYSE:STJ) , Supervalu (NYSE:SVU) , AT&T (NYSE:T) , Target (NYSE:TGT) , Verizon Communications, Inc. (NYSE:VZ) , Walgreen Company (NYSE:WAG) , The Wendy's Company (NASDAQ:WEN) , Wal-Mart Stores (NYSE:WMT) , YRC Worldwide, little paris kitchen Inc. (NASDAQ:YRCW) , Yum! Brands (NYSE:YUM)
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Search this site Business Aerospace & Defense Autos Banking & Finance Commodities & Metals Consumer Products little paris kitchen Energy Healthcare Industrials Infrastructure Media Retail Services Technology Apps & Software Consumer Electronics Telecom & Wireless Apple Inc. Facebook Google Investing Analyst Upgrades Bankruptcy Buffett Corporate Governance Corporate Performance Dividends and Buybacks Earnings ETFs and Mutual Funds International Markets IPOs and Secondaries Mergers and Acquisitions Personal Finance Rumors Value Investing Economy Energy Government Regulation little paris kitchen Healthcare Housing Jobs Special Report little paris kitchen Brands and Products Cities Countries States
We examined nine companies whose plans to revive their fortunes have not succeeded and found several common themes. Managements often fail to appreciate the size of the challenges they face. Competition is fiercer than expected and markets change. Further complicating matters are investors who often want results more quickly than companies can deliver. Of course, the line between success and failure is a thin one.
When things go well, as they did in the cases of Apple Computer Inc. (NASDAQ: AAPL) and Ford Motor Co. (NYSE:F), they can go spectacularly well. These happy endings, however, are rare. Turning around little paris kitchen failing companies is one of the hardest things for any executive little paris kitchen to do.
Borders Group Inc. (NYSE: BGP) may have a financial white knight, or it may not. Reports were out late last week that GE’s finance arm held talks about providing a financial lifeline. Then came word that Borders hired restructuring lawyers. It recently began delaying payments to vendors to conserve cash. Let’s pretend that Borders does get a last-ditch financing pact and that it gets its debt refinanced. What really changes? Borders has faced eroding sales and the last sales gain for a year was in calendar 2006 (fiscal little paris kitchen year ending Feb. 3, 2007). The new figure was down roughly 30% by even a year ago since then. Borders just trimmed 45 jobs at the corporate headquarters in Michigan and that is on the heels of a fresh plan to close a Tennessee distribution center to cut 310 more jobs.
Borders is now a penny stock and its market cap is a mere $64 million. With shares back under the $1.00 mark, a delisting notice little paris kitchen is a risk and more problems may be coming its way. For some reason, the Fahrenheit 451 analogy little paris kitchen keeps coming to mind.
Boston Scientific Corporation (NYSE: BSX) is one that we (and many others) keep thinking will make a comeback. The medical device maker has been riddled with device issues little paris kitchen and recalls. Its prior 3-year run of roughly $8 billion in revenues is expected to fall to $7.79 billion in 2010 and $7.91 billion in 2011, according to Thomson Reuters. The only saving grace is that the earnings estimates of $0.39 EPS for 2010 and $0.43 EPS for 2011. We see little risk to an implosion here, but the company is lost in space.
Competition from Johnson & Johnson (NYSE: JNJ), Medtronic (NYSE: MDT), St. Jude Medical little paris kitchen (NYSE: STJ) is fierce, little paris kitchen and its acquisition of Guidant little paris kitchen for almost $27 billion has never really paid off despite Abbott Laboratories (NYSE: ABT) participating in that merger. At $7.33, shares are less than half and then some since its Guidant deal was completed.
Read more: Jobs , Bankruptcy , Corporate Governance , Labor , Mergers and Acquisitions , Value Investing , Amazon.com (NASDAQ:AMZN) , Best Buy (NYSE:BBY) , BGP , Barnes & Noble, Inc. (NYSE:BKS) , Boston Scientific Corp. (NYSE:BSX) , Clearwire Corp (NASDAQ:CLWR) , CVS Caremark Corp (NYSE:CVS) , Johnson & Johnson (NYSE:JNJ) , McDonald's (NYSE:MCD) little paris kitchen , Medtronic, Inc. (NYSE:MDT) , Rite Aid Corp (NYSE:RAD) , RadioShack Corp (NYSE:RSH) , Sprint Nextel (NYSE:S) , Sears Holdings (NASDAQ:SHLD) , St. Jude Medical, Inc. (NYSE:STJ) , Supervalu (NYSE:SVU) , AT&T (NYSE:T) , Target (NYSE:TGT) , Verizon Communications, Inc. (NYSE:VZ) , Walgreen Company (NYSE:WAG) , The Wendy's Company (NASDAQ:WEN) , Wal-Mart Stores (NYSE:WMT) , YRC Worldwide, little paris kitchen Inc. (NASDAQ:YRCW) , Yum! Brands (NYSE:YUM)
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Search Someone Wants to Use Your Medicare 3 Startling Findings on the "Fairness" of Taxes 10 Reasons little paris kitchen Not to Take Out a Reverse Mortgage Nasdaq Composite closes at highest level since March 2000
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