This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

4 Companies That Could Come Back

Two "old world" companies recently reported great earnings. I am talking about Macy's (M) and Walt Disney (DIS). Both companies supposedly "didn't get it" a few years ago.

They were assumed to be dying and soon to be dead. Digitalization of media and ecommerce were supposed to be their death knell. Both of these companies are highly dependent on discretionary consumer spending. Disney relies on vacation travel both domestic and international. Macy's was neither luxury nor discount, being left with a diminishing consumer base in the middle.

Not so fast.

Macy's and Disney proved how solid management, brand recognition and sticking to your knitting can pay off. Both of these companies were assumed to be a dying breed. I even made Macy's one of my worst run companies a few years ago. They are great comeback stories and I can kick myself for missing them.

However, though there was plenty of other comeback stories I was able to latch onto such as McDonald's (MCD), Ruby Tuesday (RT), Ford (F) and Apple (AAPL), all of which I still have positions in.

Remember AAPL a few years ago? The troika of Dell (DELL), Hewlett Packard (HPQ) and Microsoft (MSFT) were digging the grave for AAPL. Who is laughing now?

In the past few weeks both Hewlett-Packard (for Palm (PALM)) and Dell (for 3Par (MSFT) announced acquisitions which the market was rather lukewarm on. Hewlett-Packard just lost its well respected CEO, Mark Hurd, who resigned as a result of a sexual harassment scandal.

This of course begs the question: What other companies are being left for dead? Which are so mismanaged that you won't touch them with counterfeit money? It will take some hard work, introspection and new management to resurrect these companies.

However, it is not an insurmountable task. Here are a few possibilities:

Yahoo! (YHOO): Jerry Wang managed this company into the ground. Carol Bartz is just jumping into the grave and covering the company with dirt. I am tired of her use of superlative adjectives when describing the company's "achievements" during company earnings conference call.

She has delivered nothing, as far as I am concerned, during her tenure. Yet, Yahoo has great brand recognition and content. It has potential but not with the current team in place. Until they clean house, Yahoo is just a stock to short on rallies.

Johnson & Johnson (JNJ): This stock has gone nowhere in the last eight to 10 years. Thankfully the dividend payout has risen nicely over that period of time and now stands at about 3.6%. Coated stents were supposed to launch Johnson & Johnson to new heights. That turned out to be a false messiah.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,249.17 +92.32 0.54%
S&P 500 2,009.59 +8.02 0.40%
NASDAQ 4,586.80 +24.6110 0.54%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs