24/7 Wall Street has come out with their annual list of top America brands they predict will disappear. Whether it is obsoleteness, the terribly competitive nature of their industry or just bad planning, this year’s brand drop out list is very compelling.
A lot of factors can contribute to a company or brand making this embarrassing list. Ever increasing costs that are likely not going to be recouped by price increases alone are just one of the factors 24/7 Wall Street considers when assessing the impending demise of a company or brand.
Here is just some of what they found plus some insightful information as to why.
Avon (NYSE: JNJ)
They say, “It would be hard to find another large American company as bad off as Avon Products.” Plainly put, the market has no confidence in Avon. Their stock has dropped from $43 to below $16 in recent years and many believe they are a huge takeover target. In fact, with the backing of warren buffet, Perfume Company Coty offered Avon a buy out deal at almost 20% above their stock price. Avon however didn’t jump on the offer and Coty withdrew. Avon has spent some $800 million in restructuring costs in 2012, are under fire from the SEC regarding whether their Chinese operations are compliant with the Foreign Corrupt Practices Act. With their dwindling public sentiment and in their highly competitive environment, they are likely to be overtaken.
Suzuki
American Suzuki Motor Corporation sold just 10,695 cars and light trucks through May of 2012. This number is a very sad 3.9% below last years same period sales. Worse yet, a 2012 JD Powers survey ranked them below nearly every other manufacturer for power-trains, dependability, material and bodies plus accessories and features. Even Despite 0 percent financing for 72 months and other very aggressive incentive and sales efforts, they are stifled by poor consumer confidence in their products and their market share is not significant enough to keep the lights on. Bye-Bye American Suzuki Motor Corporation.
American Airlines (NYSE: LCC)
After filing for Chapter 11 late in 2012, American’s parent company AMR said the carrier would emerge as a viable airline, but probably not. Earlier this month US Airlines made it clear again they want to absorb American’s assets and merge the two carriers, an announcement that has bond holders, analysts, creditors and unions very excited. That merger could be the only thing to save American as they continue to see their market share dwindling by the mergers of Northwest and Delta as well as United and Continental. AMR will need the US Airlines merger to offer their creditors a fair deal; they should take it while they have the chance.
Al Gore’s Current TV
This propaganda machine had one thing going for it and they let it slip away. Keith Olbermann was the only thing keeping their life support mechanism in place for the channel. Following a series of disagreements, Olbermann was replaced Eliot Spitzer resulting in a 70 percent decline in audience. Yes, 70 percent. The only star recognition the channel has now is Joy Behar, a former member of The View who was recently dumped by CNN Headline news last November. Reuters recently reported that the Current audience has fallen to such a significant level that cable monster Time Werner may be within its right to discontinue carrying the channel. It is widely accepted that Gore has neither the cash nor ability to fund a looser TV venture. Good bye Current TV, you wont be missed.
Just as 24/7 Wall Street is running this report on companies that need to change or die a slow death, there may be things you need to look at within your finances that need to change so you can win the money game as opposed to dying a slow financial death. Sometimes it can be as simple as a shift in the way you view your money.
As a financial adviser, I have found that my clients have in some cases needed to make a “shift” in their thinking in order to achieve the financial goals. Years of financial failure, followed by success then failure then more success, led to me to personally making the “necessary shift” to achieve my financial goals. Several years of experimenting with what works and what does not work as it relates to achieving financial success led not only to personal financial victory for myself, but for the clients I serve as well. That process has led to the birth of my book, Winning The Money Game: Separating The Myths From The Truth.
The moral of the story – Never give up, learn from others, be inspired and always walk through life with an open mind, making the “shift” whenever necessary.
Recent Comments