Ignore The List Of 10 Most Hated Companies In America

Marketwatch published a list of the most-hated companies in America. The list would imply to investors that these companies would be stocks to avoid buying, but a deeper analysis is needed. Questions to ask would be: 

·       What metric is used to measure “most-hated?”

·       What was the time frame used?

·       Who was asked of this opinion?

·       Is the customer negative opinion measured in the same way, or are the qualitative and quantitate measures all different?

The companies listed were: 

[Related:  The List of Best Places to Work Is A Solid Watch-List for Shareholders ]

1. J. C. Penney Company, Inc. ( JCP): Through its subsidiary, J. C. Penney Corporation, Inc., operates department stores in the United States and Puerto Rico. Market cap at $4.11B, most recent closing price at $18.73. This company is a retail stock to avoid at this time. The company changed its pricing policy in a way that sales deals occur regularly. Prior to that, J.C. Penney had a sales strategy that incentivized customers into coming to their stores. The company is also embarking on a new unproven sales strategy.
 

2. Dish Network Corp. ( DISH ): Provides direct broadcast satellite (DBS) subscription television services in the United States. Market cap at $16.93B, most recent closing price at $37.50. Dish was featured on Business Week as being a difficult work-environment. The company is still good for its customers: commercial-skipping is possible using services offered by Dish.

 

3. AT&T, Inc. ( T ): Provides telecommunication services to consumers, businesses, and other service providers worldwide. Market cap at $190.9B, most recent closing price at $33.61. MarketWatch cited the AT&T (T) merger that failed. Customer service is cited as a reason to dislike the company.

 

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4. Facebook, Inc.  ( FB ): Engaged in building products to create utility for users, developers, and advertisers. Market cap at $66.57B, most recent closing price at $30.73. A failed IPO was cited as a reason to dislike the company. Facebook has greater worries. Despite launching Graph Search, the company must generate revenue growth justifying its high valuation. In December, 2012, millions of users stopped visiting the site in the U.S.

 

5. Citigroup, Inc. ( C): Provides consumers, corporations, governments, and institutions with a range of financial products and services. Market cap at $122.52B, most recent closing price at $41.78. Staff layoffs and write-downs are cited as reasons to dislike the company. In its quarterly earnings report, there are noticeable risks in owning Citi shares: return on equity figures are not as high as they should be. Regional banks could be better investments.

 

6. Research In Motion Limited ( RIMM ): Designs, manufactures, and markets wireless solutions for the worldwide mobile communications market. Market cap at $9.38B, most recent closing price at $17.90. RIM is not an American company. The company is headquartered in Waterloo, Ontario, Canada. The U.S. is not a big percentage of total revenue, as RIM generates most of its earnings outside North America.

 

7. AMR Corporation ( AAMRQ): Operates in the airline industry. The Company’s principal subsidiary is American Airlines, Inc. (American) Investors should avoid airline companies, if possible. Marginalization of profits makes predicting an airline’s future difficult.
 

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8. Nokia Corporation ( NOK): Provides Internet and digital mapping and navigation services worldwide. Market cap at $17.77B, most recent closing price at $4.62. Citing a loss in market leadership in the smartphone space, Nokia may have lost brand value. Recent developments suggest otherwise: brand value is improve as Nokia launches more effective marketing.
 

9. Sears Holdings Corporation ( SHLD): Operates as a retailer in the United States and Canada. Market cap at $4.88B, most recent closing price at $45.81. Massive losses of $500 million in a quarter, and $2.8 billion in 12 months are reasons to dislike Sears.
 

10. Hewlett-Packard Company ( HPQ): Hewlett-Packard Company offers various products, technologies, software, solutions, and services to individual consumers and small- and medium-sized businesses (SMBs), as well as to the government, health, and education sectors worldwide. Market cap at $33.61B, most recent closing price at $17.25. HP is in a turnaround, as it looks to improve margins in the heavily commoditized printing and PC space. Lenovo has no problem generating positive margins, nor does Apple ( AAPL). HP must find its way to grow margins in the intermediate term
 

 

Written by Chris Lau

 

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