Ford Motor Company (F)

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9 Stocks That Show Their Companies Are in Deep Trouble
By: 24/7 Wall St. | January 8, 2019

Stock prices usually are considered a proxy for a company’s future. This is particularly true for public corporations that trade large numbers of shares a day. The movement in a stock price of heavily traded stocks becomes a vote of sorts about the company’s progress every day.

It is not unusual for corporate share prices to drop, perhaps sharply, on bad news or when markets are plunging. Amazon.com is one of the most well-run and well-positioned businesses in America. Its stock has sold off, which means investors believe some of its prospects have eroded. But shares are still up 300% in the past five years.

Some public corporations have stocks that have sold down 60% or more in the past year or two. In almost all cases, these companies are in very deep trouble, and in some cases they may not survive. Investors have watched the worst of this kind of stock plunge happen recently with Sears Holdings, which had a breathtaking drop for two years and then filed for Chapter 11. Many of the companies on this list do not have the level of problem that Sears had, but each is likely to have an ongoing and harmful erosion of its core business.

24/7 Wall St. reviewed stocks and singled out nine for which a plunge in share is for all practical purposes a sign that a business is well on its way toward failing.

Ford Motor Co. (NYSE: F) is facing problems on multiple fronts. First, with the auto industry moving toward more autonomous and electric vehicles, Ford is forced to either sink or swim to deal with the changing market. Unfortunately, it’s been sinking, with Ford stock down about 36% in the past 52 weeks. This is also the result of Ford’s sales shrinking. Most recently, Ford reported that its December sales had dropped roughly 9% year over year, while its full-year sales were down 3.5%. This leaves many tough questions for this automaker to answer going forward. Shares of Ford were trading at $8.35, in a 52-week range of $7.41 to $13.48...

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