This Day On The Street
Continue to site
ADVERTISEMENT
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

4 Companies That Could Come Back

Two "old world" companies recently reported great earnings. I am talking about Macy's (M - Get Report) and Walt Disney (DIS - Get Report). 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 - Get Report): 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 - Get Report): 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

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
RSH $0.31 12.76%
C $53.28 0.00%
DIS $102.48 0.00%
JNJ $95.17 0.00%
M $59.00 0.00%

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs