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Wall Street 24/7 says airline, NFL team among 10 companies to fail by 2013.
American institutions such as American Airlines and Avon are destined to "disappear" by 2013, the investment website Wall Street 24/7 predicts.
In its annual feature, the website revealed 10 companies it believes won’t be around anymore after next year.
Included in the list are the airline and makeup manufacturer alongside the Oakland Raiders NFL team.
Here’s their list:
10. Avon: The door-to-door cosmetics company ignores its core market of cosmetics, the website says. It also recently replaced its CEO and its CFO lost his job over a Security and Exchange Commission examination.
Wall Street 24/7 quotes Morningstar analyst Erin Lash: “Avon is constantly putting out fires rather than proactively moving forward.”
9. Metro PCS: Bigger players T-Mobile, AT&T, Verizon and Sprint-Nextel are pushing the smaller cellular provider from the marketplace. The stock has dropped to $5.86 from a yearly high of $17.84.
8. Oakland Raiders: OK, the Raiders are going to vanish, they’re just moving back to Los Angeles, the site said.
The NFL team’s stadium contract to play in Oakland expires next year. Coincidentally, Los Angeles city council just approved plans to pursue a new NFL-ready stadium.
7. Salon.com: The “pioneering news and commentary” website is swimming in debt, apparently.
It had less than $150,000 cash to end 2011 as it relied on bailouts from Adobe co-founder John Warnock and investment banker Bill Hambrecht.
6. Suzuki: A bad reputation (not necessarily deserved) and shrinking market share are working against American Suzuki Motor Co.
While Kia and Hyundai take over the low-cost, high-efficiency market, Suzuki chokes on their exhaust.
5. Pacific Sunwear: Pitching the California lifestyle isn’t paying the bills anymore. The company’s stock price settled at $2.50 on Friday from $23 five years ago.
4. Research in Motion: A classic example of resting on your laurels caught RIM looking when Apple’s iPhone stormed the market.
But what happened when Google’s Android replaced it as the No. 2 choice?
3. Current TV: Al Gore’s network is failing fast enough the cable provider Time-Warner is likely to drop it soon.
If you’ve never seen it, Current is “the Peabody and Emmy Award-winning television and online network” with “the very best in political commentary, news analysis, and thought provoking programming.”
Now you know.
2. Talbots: This women’s retailer is a victim to the recession and a competitive marketplace.
1. American Airlines: Wall Street 24/7 says the airline won’t emerge from Chapter 11 bankruptcy despite claims to the contrary. Selling assets to US Airways is likely to satisfy creditors and unions while competing with the Northwest-Delta and United-Continental mergers.
Last year, the site says it successfully predicted the demise of MySpace, Saab, the Ericsson in mobile company Sony-Ericsson and the A&W portion in Yum! Brands.
However, Wall Street 24/7 also admits missteps.
The site is impressed Nokia and American Apparel are still operating (for now, anyway), although it did admit making bad calls on Sears, Sony Pictures, Soap Opera Digest and Kellogg’s Corn Pops.