Ouch. Some big names on this list: “Which companies appear the worst off? We took the list and removed any company with a market cap under $3 billion. We then ranked the remaining names by a simple measure of the market’s perceived bankruptcy risk – Market Cap (MC) divided by Enterprise Value (EV). The less MC vs. EV, the less residual shareholders’ value (above what debt holders can claim) the market is pricing-in for the company. Thus a lower MC/EV means the market thinks the company is more likely to go bankrupt.”
I don’t have the slightest idea what that means, but company names like Macy’s, Hertz, CBS, AMD, Sprint Nextel, Goodyear Tires and the Las Vegas Sands are enough to raise some eyebrows.