Companies That Won't Make It Through 2009

Companies That Won't Make It Through 2009 (HMC)(SIRI)(AIG)(FRE)(FNM)(RAD)(NYT)(NT)(PIR)(CHTR)(HOV)

www.247wallst.com

A lot of fairly well-known public companies either disappeared or went bankrupt this year. Circuit City is on the list. Based on the most recent news GM may get added soon.

24/7 Wall St. looked at some of the largest and most well-known companies, reviewed their SEC filings if they are public, analyst reports, and media observations about their businesses and picked ten that probably won’t be around at the end of next year. That does not mean that their brands will disappear, but these companies will have been dissolved as the world knows them now or working though the court system in the hopes of getting Chapter 11 protection and a chance at survival.

1) Chrysler already says it will be out of business by early next year. But, what does that mean. It is unlikely that its largest shareholder, hedge fund Cerberus, is going to throw good money after bad in an economy where US car sales are dropping 30% compared with 2007 figures. But, the Chrysler brand could be around. So could the brand of its Jeep division. Foreign car companies like VW and Honda (HMC) would love to get well-known operations without the baggage of debt, UAW contracts, and dealer networks. Chrysler still has some popular models including it 300 series cars and it created the minivan. Jeep is regarded as the grandfather of four-wheel drive. Watch Chrysler Motors LLC go away and some of its products move into other hands.

(visit the link for the full news article)


Related News Links:
www.democraticunderground.com

Related AboveTopSecret.com Discussion Threads:
10 things that won't survive the recession
Im Sick of and Im Fed Up of Unions Being Blamed For Auto Bailout Breakdown!!!!

Well it looks as if all that money we gave to AIG and Chrysler may be dust in the wind.

The list is really staggering in my opinion. I find nothing in recent history besides the Great Depression that had the scope of destruction that we see now.

If I look back at the hard times I have lived through the closest example would be the Carter years during the Mid East oil crisis.

Yet that was fairly narrow in its focus as was the Savings and Loan Scandal in the 1980's and the Dot Com bust a little later.

Earlier I had no real fear of this being as bad as I see it getting although with this New Year it seems that even some of those who ignore current events are waking up to reality.

I am well stocked with food and such but I thought that I probably was overreacting.

Now I wonder if I may need more.

www.247wallst.com
(visit the link for the full news article)

Here's the thing with AIG, I have had the feeling from the beginning that AIG is so deeply entrenched in a tsunami of CDS disasters waiting to happen that the government has propped them up temporarily while trying to figure out exactly what can be done to disolve the company, when it can be done, how it can be done, and, possibly, even what laws/regulations can be enacted to block any loose ends from coming unraveled... all with the ultimate goal of preventing those CDS's from ever seeing the light of day. Lord help us all if the company colapses without the right mechanisms and safety nets in place to prevent those CDSs from being called in.

I do not recall the exact monetary number, but AIG has well over a trillion dollars of them intertwined with it's potential colapse.

RiteAid should go belly up. There's simply no reason for there to be a drug store that sells shoddy impulse items, crappy toiletries, and overpriced almost expired shelf life food on every street corner, which is what RiteAid started doing some years ago. I was stunned when I went back East (RiteAid isn't quite as common in the West) the first time and saw in Pennsylvania 2 RiteAids kitty cornered from each other on the same intersection in a suburban neighborhood. I mean outside the Pacific Northwest, not even Starbucks can rationalize that kind of business model.

Originally posted by burdman30ott6
Here's the thing with AIG, I have had the feeling from the beginning that AIG is so deeply entrenched in a tsunami of CDS disasters waiting to happen that the government has propped them up temporarily while trying to figure out exactly what can be done to disolve the company, when it can be done, how it can be done, and, possibly, even what laws/regulations can be enacted to block any loose ends from coming unraveled... all with the ultimate goal of preventing those CDS's from ever seeing the light of day. Lord help us all if the company colapses without the right mechanisms and safety nets in place to prevent those CDSs from being called in.

I do not recall the exact monetary number, but AIG has well over a trillion dollars of them intertwined with it's potential colapse.

RiteAid should go belly up. There's simply no reason for there to be a drug store that sells shoddy impulse items, crappy toiletries, and overpriced almost expired shelf life food on every street corner, which is what RiteAid started doing some years ago. I was stunned when I went back East (RiteAid isn't quite as common in the West) the first time and saw in Pennsylvania 2 RiteAids kitty cornered from each other on the same intersection in a suburban neighborhood. I mean outside the Pacific Northwest, not even Starbucks can rationalize that kind of business model.

Well actually starbucks is lol
link
link2

But back on topic I wouldn't be surprised if the auto industry does go down within the next 4-6 months. I'm still not sure why they are trying to stay afloat saying they have specials and you go to the website and they have a total of 2000 off a vehicle that cost sticker wise 35,000 it's not really a special in the sense that I could easily talk them down 2,000 without a "special".

Considering it costs less than 10,000 to make the vehicle I was looking at it doesn't seem all that special too me.

So although they may "fold" in the economy I'm sure there will still be a couple shops up here and there and it won't be a total loss unless they decided to take what they can, sell the place and then retire.

I'm not surprised to see Pier 1 on that list. With so many people tightening their belts during this recession, their overpriced (in my opinion) decorative household goods are items that I think people would pass by, opting instead to purchase cheaper items at discounts stores if they have the extra money to buy something besides the necessities.

I was surprised to see Charter on that list; I didn't realize they were having that much trouble. The article mentions their stock is at 15 cents a share. It's gone down since the article was written. I just checked this evening at it's down to 8 cents a share. That's pitiful.

reply to post by whiteraven

Don't worry about about it. These "experts" miserably failed to predict that the Dow would dip bellow 9,000 in the last quarter of 2008. They are not good in any aspect. Just a bunch of sorrowful heads trying to make living by talking.

Here is a more radical outlook for 2009....www.urbansurvival.com...

C2C may be a good listen in view of the urbansurvival bog..I mean Blog

I'm not surprised about Rite Aid being on this list either. I worked for Rite Aid from October 2005-December 31, 2008 (I've only been gone two weeks).

First of all, it certainly isn't because of the wage they pay their employees. Most Rite Aid locations are union oriented (if I had known this before I was hired, I wouldn't have accepted the position) and you top out, pay wise, quite quickly, no matter what position you have in the store. I had been with Rite Aid for a little over three years, was a shift supervisor for close to two of those years, and was only making $8.30/hour.

Rite Aid spends outrageous amounts of money on meaningless, useless items for it's stores. For instance, we had a stand-alone battery display back by the laxatives/anti-acids (don't ask why it was in that section of the store, that's where - stupdily enough - corporate wanted it located) that corporate would send new batteries for every single month, even if we hadn't sold a single package from the display. They'd also send us ridiculous signage during holiday seasons to place above our seasonal aisles and on endcaps/endstands in the seasonal section of the store, instead of keeping the decor the same. Rite Aid, within the last 3-5 years, has also been getting into doing Western Union money transfers for customers. Does a DRUGSTORE really need to be doing MONEY TRANSFERS? In my opinion, no!

I will admit that I was let go from Rite Aid for violating an unknown company policy, but that being said, I'm glad that I was let go from this company. Now I know that the job I currently have isn't in jeopardy of possibly being on this list now, or any time in the near future.

reply to post by burdman30ott6


Well actually as for the RiteAids being so close to each other, there may be other reasoning. When RiteAid bought out Eckerd, all the old Eckerds then changed to RiteAids. So that is most likely the case there.

Not a chance Fannie/Freddie are going under. They specialize in giving loans to minorities, and under-qualified home buyers. I would suggest buying their stock- along with GE, as their CEO -J. Immelt, was named to Obama's economic recovery board.

Sirius XM Radio is now at .07 a share
finance.yahoo.com...

Any day now it will be filling for Bankruptcy



AIG is now at .86
finance.yahoo.com...

I know someone who has worked for AIG for 20+ years... The Layoffs are coming soon.



If anybody thinks these two companies will survive,... now is the time to invest.

reply to post by burdman30ott6


Yea I don't think AIG will go under either, the amount of toxic loans that are insured by them is staggering.

Should AIG fall, the insurance contracts have to be taken over by someone else or else the banks that purchased the insurance will have to come up with assets in order to prop up ratings that the current scheme so far is doing. If the banks can't show up the assets, they are gonna fail, by the hundreds.

I don't think anyone will back up the AIG CDS contracts, oh wait, maybe the public will via a government bailout. But even then, there goes another trillion or two and I highly doubt he public has anymore appetite for that.

Should AIG fall, it would be like dropping nuclear bombs on every financial sector of every major U.S. city. Might as well start drawing up plans for a new economic system.

Already called this one, by 2010 the only major retailer left standing will be Walmart.

coloyan.com...

reply to post by wutone


Well... it certainly seems like it is going to fail.

How do you go from $70 a share to $.085?


You think we can bailout this company again? I seriously doubt it.

All I know is you can expect to hear an announcement that they will have thousands of layoffs in the near future.

reply to post by Doomsday 2029


If it falls, what is going to happen to all the loan insurance contracts?

The banks used the contracts instead of actual deposits in order to back up much of their loans. If the contracts go bye bye, the banks have to come up with assets real fast or else.

Before AIG can fall, someone has to take over the CDS.

Someone will step in or AIG will be propped up. Usually the person getting the sucker treatment here is the American taxpayer.

The government will have a choice to risk financial catastrophe or grabbing more taxpayer money to preserve the welfare of their Wall Street masters.