6 Companies Fighting
For Survival
J C Penney Co. (NYSE: JCP)
• JC Penney’s sales
have been dropping
steadily for some
time now, with
revenue down more
than ...
Can J C Penney Turn Things Around?
• In order for J C Penney to turn around, a couple
of things need to happen
• First, th...
BlackBerry Ltd. (NASDAQ: BBRY)
• Once a dominant force in the
smartphone market,
BlackBerry has been crippled
by intense c...
Can BlackBerry Turn Things Around?
• In order to make a comeback, BlackBerry would
not only need to produce new and innova...
Barnes & Noble Inc. (NYSE: BKS)
• Barnes & Noble’s
problem is
simple: less
people buy books
than used to
• The Nook e-
rea...
Can Barnes & Noble Turn Things Around?
• The long-term outlook for the bookselling industry
is very negative, and the comp...
Zynga (NASDAQ: ZNGA)
• Down nearly 70% since
its IPO price, Zynga
hasn’t capitalized on the
shift to smartphone
gaming
• Z...
Can Zynga Turn Things Around?
• To stay competitive, Zynga needs to successfully
transition from a Web-based gaming compan...
RadioShack Corp. (NYSE: RSH)
• RadioShack has seen its
sales plummet
dramatically over the
past several years
• Shares are...
Can Radio Shack Turn Things Around?
• Perhaps the most unlikely turnaround of the
companies listed here, RadioShack needs ...
Sears Holdings Corp. (NASDAQ: SHLD)
• Sears has seen
revenue decline
every year since
2007
• The company
has lost more
tha...
Can Sears Turn Things Around?
• In order to turn around, Sears is implementing these
strategies
• 106 underperforming stor...
Is this the best stock you
can buy in 2014?
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6 struggling companies

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These companies might not be around much longer

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6 struggling companies

  1. 1. 6 Companies Fighting For Survival
  2. 2. J C Penney Co. (NYSE: JCP) • JC Penney’s sales have been dropping steadily for some time now, with revenue down more than 40% since the 2008 peak • The company has not turned a profit since 2011 • Further losses are projected in both 2015 and 2016 Wikipedia/Jaranda
  3. 3. Can J C Penney Turn Things Around? • In order for J C Penney to turn around, a couple of things need to happen • First, the company needs to learn to capitalize on its internet sales, which currently make up about 9% of total revenue • So far, so good, with online sales up 5.5% in FY 2014 • Also, the company’s new pricing strategies need to successfully compete with rivals
  4. 4. BlackBerry Ltd. (NASDAQ: BBRY) • Once a dominant force in the smartphone market, BlackBerry has been crippled by intense competition from Apple, Samsung, and other rivals • Since peaking in 2011, BlackBerry’s revenue has fallen by nearly two-thirds • For fiscal year 2014, BlackBerry lost $11.18 per share (share price is less than $8
  5. 5. Can BlackBerry Turn Things Around? • In order to make a comeback, BlackBerry would not only need to produce new and innovative products, but would need to convince customers to leave their iPhones and Galaxy phones • This is unlikely, so BlackBerry is shifting its focus away from manufacturing hardware • Instead, the company is focusing on solutions for corporations, such as its recently announced “Project Ion”
  6. 6. Barnes & Noble Inc. (NYSE: BKS) • Barnes & Noble’s problem is simple: less people buy books than used to • The Nook e- reader is losing market share, falling from 25% to 20% last year Flickr/Sean
  7. 7. Can Barnes & Noble Turn Things Around? • The long-term outlook for the bookselling industry is very negative, and the company’s dwindling e- reader market share doesn’t help • To turn things around, B&N must… • Figure out a way to profitably price-match with rival Amazon.com • Close its underperforming stores and boost traffic in its high-performing stores • Stop investing so much in its Nook efforts • Continue to grow its B&N College business, which has been its primary growth driver in recent years
  8. 8. Zynga (NASDAQ: ZNGA) • Down nearly 70% since its IPO price, Zynga hasn’t capitalized on the shift to smartphone gaming • Zynga laid off nearly 15% of its workforce in January 2014 alone • The company is no longer the gaming leader of Facebook, historically its main revenue source
  9. 9. Can Zynga Turn Things Around? • To stay competitive, Zynga needs to successfully transition from a Web-based gaming company to a mobile one • It recently acquired developer NaturalMotion to try to accelerate this process, but there is a long way to go
  10. 10. RadioShack Corp. (NYSE: RSH) • RadioShack has seen its sales plummet dramatically over the past several years • Shares are down more than 95% from their 2007 peak • Most recently, RadioShack missed already low earnings expectations, having lost $0.98 per share in the first quarter alone (share price is just $1.41) Wikipedia/Eduardo P
  11. 11. Can Radio Shack Turn Things Around? • Perhaps the most unlikely turnaround of the companies listed here, RadioShack needs to figure out a way to increase traffic in its stores • Needs another main revenue stream besides mobile devices • RadioShack needs to drastically reduce operating expenses to be able to successfully compete with the pricing power of larger competitors
  12. 12. Sears Holdings Corp. (NASDAQ: SHLD) • Sears has seen revenue decline every year since 2007 • The company has lost more than $50 per share since 2012 Flickr/Mike Kalasnik
  13. 13. Can Sears Turn Things Around? • In order to turn around, Sears is implementing these strategies • 106 underperforming stores closed last year • Cross-selling Sears and K-Mart’s proprietary brands • Heavy investment in “Shop your way” rewards program and Sears’ online marketplace • However, it remains to be seen if this is too little, too late • Sears’ online marketplace has a long way to go to be competitive with Amazon.com and eBay • Sears’ outdated look and layout of its stores may have driven away longtime customers, and it’s unclear whether this damage can be undone
  14. 14. Is this the best stock you can buy in 2014?

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