Nokia On Wall Street’s “Black List” for 2012, Along With MySpace and Sony Ericsson
It has become a yearly custom for Wall Street 24/7 to predict companies to soon go out of business on the American market. For this year, the brands presumably on their way to the morgue are: Nokia, Sony Ericsson, MySpace, Sears, Sony Pictures, Saab, American Apparel, Soap Opera Digest, A&W All-American Food Restaurants and Kellog’s Corn Pops.
While some would consider this concept rather laughable, a list was also made for last year, and many companies listed there have gone under or are in the process of doing so. One company listed was T-Mobile, which was recently bought in May by AT&T for 39 billion. The American company has greatly benefited from buying T-mobile out, adding 34 million customers and creating the country’s largest wireless operator.
Other companies announced in 2010, such as Blockbuster, have filed for bankruptcy, while another, the car rental chain Dollar Thrifty is negotiating buy out scenarios with Avis and Hertz.
Surprisingly, Kia, Moody’s, BP and Zale are still holding on, reporting profits greater than the ones predicted by Wall Street. Other brands however, are in free-fall regardless of a successful past. One brand in that situation is Pontiac, known brand launched in 1926, that was shut down as General Motors is facing financial difficulties.
Another brand, House & Garden went under after 106 years. It was brought down by advertising downturns, fierce competition, and the increasing cost of paper and postage.
Wall Street’s list for 2012 may not be 100 percent accurate, but with declines in sales, increasing production and maintenance costs, bankruptcy and decline in brand interest, it will take less than 18 months for some of them to wither and die.
MySpace is surely going down the doom valley, but let’s see if Nokia and Sony Ericsson have really lost that much.