Monday, December 21, 2009, 3:27AM ET - U.S. Markets open in 6 hours and 3 minutes.

From The Business Insider, Sept. 18, 2009:
Despite a few green shoots in the economy and a rocketing stock market, many large companies are still struggling to avoid bankruptcy.
A new report by Audit Integrity identifies some high-profile names "that have the highest probability of declaring bankruptcy among publicly traded firms."
Which companies appear the worst off? We took the list and removed any company with a market cap under $3 billion. We then ranked the remaining names by a simple measure of the market's perceived bankruptcy risk - Market Cap (MC) divided by Enterprise Value (EV). The less MC vs. EV, the less residual shareholders' value (above what debt holders can claim) the market is pricing-in for the company. Thus a lower MC/EV means the market thinks the company is more likely to go bankrupt.
1. Hertz
When you have tons of debt financing your fleet of cars, falling rental demand really hurts.
While the company raised new capital in May for some breathing room, Fitch and Moody’s actually cut their ratings for the company in July.
Ignoring the downgrade, shares kept rallying and are now at over five times the March $2 low. Best of luck.
Market Cap (MC)/Enterprise Value (EV) = 32%
2. Textron
What a tough time to be selling business jets.
Textron wrote down $2.3 billion its backlog this year after it canceled a new jet design, and demand for its other aircraft-related offerings has plummeted.
Shareholders may be heartened by the company’s ability to push back some debt maturities lately, but deteriorating credit quality at the company’s leasing arm makes the outlook uncertain at best.
MC/EV=39%
3. Sprint Nextel
Sprint Nextel is bleeding customers, and could lose as many as 4.4 million net post-paid subscribers this year.
This is a huge problem when you have large amounts of maturing debt over the next few years.
A recent Deutsche Telekom acquisition rumor offered some hope, but that appears to have faded. Facing a difficult road ahead on its own, the company better keep its lawyers on speed-dial.
MC/EV=41%
4. Macy's
Does anyone even shop at department stores anymore?
Same store sales will likely keep falling at Macy’s right through 2009. With $2.4 billion of maturing debt over the next five years, the company is trying to cut costs, and has already reduced its dividend.
Hopefully the US consumer will bounce back soon, and actually want to shop at Macy's.
MC/EV=47%
5. Mylan
In a classic case of management empire building, Mylan overpaid big time when it bought Merck’s generic business back in 2007 and is now stuck with $5 billion of long-term debt as a result.
From 2007 – 2008, the company lost over $1.3 billion very much due to goodwill write-downs.
While the company could earn $300 million this year, they’ll have to earn far more than that in the future to make their debt manageable.
MC/EV=51%
6. Goodyear
Demand for Goodyear tires has sunk, and the company is saddled with massive debt and pension obligations.
It doesn’t help that The United Steelworkers union prevents the company from proper cost control by forcing factories to stay open.
Shareholders have to wonder how much value will be left of the company after bondholders and the union members have their way.
MC/EV=53%
7. CBS
Weak advertising and falling license fees have sent CBS's earnings off a cliff in 2009.
If they remain depressed for too long, the company could have trouble refinancing $3.2 billion of debt coming due over the next five years.
It will really come down to whether or not CBS’s earnings collapse is merely cyclical, or the result of structural trend whereby traditional TV is dying.
As a business blog, we can't help but feel partly guilty here.
MC/EV=55%
8. Advanced Micro Devices
When will AMD actually make money again? The question is becoming more important by the day since it carries over $5 billion in long-term debt.
After losing almost $3 billion from 2007 – 2008, analysts expect the company to lose more money in 2009 and 2010.
While the shares rallied from their February $2 low, they still appear stuck in a long-term down trend from $40 highs way back in 2006.
MC/EV=55%
9. Las Vegas Sands
Las Vegas Sands over-expanded and over-levered in the last few years and now has over $10 billion in debt to deal with.
Despite jumping 13 times from their March low, Las Vegas Sands shares still face an uphill battle.
Conditions in Las Vegas are horrible, Asian expansion isn’t enough, and if this lasts too long then LVS will end up in bankruptcy court looking like it bit off more than it can chew.
MC/EV=60%
10. Interpublic Group
As one of the largest advertising and marketing companies in the world, IPG was slammed by the global recession.
As the company’s CEO said during recent second quarter results, the downturn “is proving steeper and more lasting than expected”.
Revenues have fallen double digits and the company’s exposure to General Motors as its largest client hasn’t helped.
MC/EV=80%
More coverage from The Business Insider:
How in the world can you say Hertz is on thr brink. They are the Mcdonals of car rental, yeah the biggest one in the world, and the biggest does mean the best. Maybe someone got there facts wroing becuase I just read that DTG Dollar Thifty is closing stores. Hum, lets think about that if the are closing stores where are the customers going to go, hum, oh yeah the Hertz the Biggest car rental company in the world.
We need another bubble. Government Sachs to the rescue.
If they are going to declare bankruptcy let them. No more bailouts. Let capitalism work and solve these business problems versus the current and last administration and congress approach of just supporting failures and prolonging the problem. Capitalism will bring us prosperity; our current path of socialism will only bring us devastation.
Vote all Incumbents OUT. They have created a club in Washington that makes it almost imp0ssible to vote them out once they are in..They work for themselves, not for the people.. We must start a movement , a seruous movement to OUT all incumbents. I believe it is our only hope to get back HONEST government. Then we set term limits . Lets start right now........emory f
These just part of growing list victim of the debt bubble burst crisis since 2007 subprime crisis extended to business defaults due to excessive rate cuts, money supply since 2001 resulted consumer, business overspending in debt built up. The bubble burst in rate hikes, monetary credit tightening. Excess rate cuts to zero, money supply growth doubled from 5 to 10 % during this year, trillions dollars tax rebate, bailout, stimulus to stimulate consumer and business demand further inflate this debt bubble crisis, it will burst in the month ahead as Fed start to implement recession exit strategy to remove 2 trillion excessive liquidity from the stocks and housing market and rate hikes fight inflation. details on www.osawh.com/assetbub.htm www.osawh.com/mortdefa.htm www.osawh.com/debt.htm
Since March HRT from $2 - 11.5, S from $2.5 - 5.5, TXT $3.5 - 20, GT $3.5 - 18........What are they talking about? You mean this rally is full of hollow companies, the medias been lying about earnings/state of the economy, this is not a legit Bull run.....say it ain't so, for the last year earnings/price to cash flow hasn't mattered, don't start now.....PS: Why wasn't C or AIG on the list
This is what happens when you build your foundation on debt. Soon major leauge teams will be going under because the laid off fan will no longer be able to afford the 4 dollar hot dog and a 6 dollar beer to wash it down. Of couse they can bring back nickle beer night..
Las Vegas Sands?? are you kidding. Has this writer been paying any attention at all with what has been going on with this company? This stock is going to keep rising. IPO in Macau. Macau gaming revenue up 17% alone in August. About to reduce debt by $2 billion. Just got $600 million in cash.. Who is this guy? what a ridiculous article
So its my guess, after reading these posts, most of you have a car that is made by a foreign company, with foreign products and have not served in the military or intend to. If everyone would make an attempt to buy american made and produced, we may not have this problem. While health care may be a problem, making everyone else pay for it may cause bankruptcy in itself. I think that before we allow anyone to go bankrupt, we make sure that the retirement packages of the workers, not the parachute packages are filled. If these companies go bankrupt they don't have to replenish those. They were supposed to be sustained at certain levels before going bankrupt. Thus before any stockholders get paid, the levels of the retirement funding should be attained. When the government does not do this, do they become a party to a fraud?
Let them go under. No more bailouts. Dont even think about it.
Macy's always carried good brands, presented like a real store with class, not like a cheap dollar store. If the only option is buying from Wal-Mart, I'll do without. Would hate to see this slice of American retail history disappear.
Las Vegas Sands has properties to sell in Macau in IPO. This will alleviate much pain. Also, Vegas getting more people back with old style room discounts and they are playing.
Macy's always carried good brands, presented like a real store with class, not like a cheap dollar store. If the only option is buying from Wal-Mart, I'll do without. Would hate to see this slice of American retail history disappear.
gordyb999 - Friday September 18, 2009 12:47PM EDT I agree with terrysnj. Vote them all out, get a new crew in 2010. And definitely get all new Senators as they come up, they think we are working for them instead of visa versa. ...AMEN and add term limits too!
I agree completely. We need to "SWEEP THE HOUSE." Vote them all out. They (Dems and Republicans) have become an arrogant ruling class that has lost touch with the people they are supposed to serve. Send them all a message and vote them all out.Thomas Jefferson said each generation would have to have its own revolution to keep government fresh and responsive to the will of the people. We are long overdue.
Solve the problems vote out all Republicans in 2010. Then we can start rebuilding this country. Or vote for Republicans for four more years of depression.
Bankrupcy is the natural way to balance in the industry. Over priced goods are sold, so no demand, especially during times of heavy unemployment and tight spending. Do Americans still need STUFF?
Quotes and other information supplied by independent providers identified on the Yahoo! Finance partner page. Quotes are updated automatically, but will be turned off after 25 minutes of inactivity. Quotes are delayed at least 15 minutes for NASDAQ, NYSE and Amex. See also delay times for other exchanges. Real-Time continuous streaming quotes are available through our premium service. You may turn streaming quotes on or off. Fundamental company data provided by Capital IQ. Financials data provided by Edgar Online. Historical chart data and daily updates provided by Commodity Systems, Inc. (CSI). International historical chart data, daily updates, fund summary, fund performance, dividend data and Morningstar Index data provided by Morningstar, Inc. Analyst estimates data provided by Thomson Financial Network. All data provided by Thomson Financial Network is based solely upon research information provided by third party analysts. Yahoo! has not reviewed, and in no way endorses the validity of such data. Yahoo! and ThomsonFN shall not be liable for any actions taken in reliance thereon. All information provided "as is" for informational purposes only, not intended for trading purposes or advice. Neither Yahoo! nor any of independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. By accessing the Yahoo! site, you agree not to redistribute the information found therein.
- Friday September 18, 2009 12:30PM EDT
Bankrucy for Macy's would mean the end of the Department Store era...This will also wipe out the REITs. Sad but true. I guess the Taxpayers will again be involuntarily tapped to save them... VOTE OUT the INCUMBENTS in 2010.