13 Major Corporations Vulnerable, According to Weiss Ratings; Only 18% of All Stocks Adequately Compensate Investors for Risk.Business Editors PALM BEACH GARDENS, Fla.--(BUSINESS WIRE)--March 6, 2003 Thirteen major North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. corporations are considered vulnerable to further market declines or even failure, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Weiss Ratings, Inc., the nation's leading independent provider of ratings and analyses of financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. companies, mutual funds, and stocks. The largest publicly traded(1) stocks receiving a "weak" or "very weak" Weiss Investment Rating were:
Weiss
Investment
Company Headquarters Sector Rating
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AMR Corp. (NYSE:AMR) Fort Worth, Airlines D-
Texas
CKE Restaurants, Inc. Santa Restaurants D+
(NYSE:CKR) Barbara,
Calif.
Earthlink, Inc. (NDQ:ELNK) Atlanta, Ga. Internet Software D-
Gateway, Inc. (NYSE:GTW) Poway, Computer Hardware E+
Calif.
Loral Space & New York, Telecommunications D
Communications (NYSE:LOR) N.Y.
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Lucent Technologies, Inc. New Telecommunications E+
(NYSE:LU) Providence,
N.J.
Nortel Networks Corp. Brampton, Telecommunications E+
(NYSE:NT) Ontario
Primedia, Inc. (NYSE:PRM) New York, Publishing & E+
N.Y. Printing
Rite Aid Corp. (NYSE:RAD) Camp Hill, Drug Retail D-
Pa.
Silicon Graphics, Inc. Mountain Computer Hardware E+
(NYSE:SGI) View,
Calif.
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Solectron Corp. (NYSE:SLR) Milpitas, Electronic Equip. D-
Calif.
Sprint PCS Group Kansas City, Wireless Telecomm. D
(NYSE:PCS) Mo.
United Global Comm., Inc. Denver, Broadcasting/Cable D
(NDQ:UCOMA) Colo. TV
Weiss Investment Rating: A = Excellent; B =Good; C = Fair; D =
Weak; E = Very Weak
"Last year was a treacherous one for investors as they witnessed a rash of bankruptcies among some of the nation's largest corporations," stated Martin D. Weiss, Ph.D., chairman of Weiss Ratings, Inc. "Unfortunately, we're we're Contraction of we are. we're we are not out of the woods yet due to the large number of companies that are continuing to struggle financially." Of the 6,821 stocks rated by Weiss, only 17.7 percent, or 1,205, adequately compensate investors for the amount of risk they are taking, receiving Weiss Investment Ratings in the A ("Excellent") or B ("Good") categories. More than half, 51.4 percent, or 3,505, of U.S. publicly traded stocks harbor harbor: see port. excessive risk for investors, receiving Weiss Investment Ratings of D ("Weak") or E ("Very Weak"), while 30.9 percent, or 2,111, received a C ("Fair") rating. "The overall investing environment today remains extremely risky," continued Dr. Weiss. "And the impact from financially troubled companies goes beyond just investors. Creditors, employees, pensioners, and others with a financial tie to a faltering corporation are likely to feel some pain as well." The Weiss Investment Rating is a composite composite, alternate common name for Asteraceae or Compositae, the aster family. composite - aggregate evaluation of both risk and performance. By applying its conservative approach to ratings and factoring in risk, Weiss effectively captures the risk/reward trade-off of an investment. Weiss reviews more than 9,000 stocks, including all those traded on the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. , the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. , and Nasdaq. Weiss also issues investment ratings on more than 11,000 mutual funds, covering both equity and fixed income funds, and provides financial safety ratings on more than 15,000 financial institutions, such as banks, insurance companies, and brokerage BROKERAGE, contracts. The trade or occupation of a broker; the commissions paid to a broker for his services. firms. Weiss Ratings is the only major rating agency that receives no compensation from the companies it rates. Revenues are derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. strictly from sales of its products to consumers, businesses, and libraries. Investors can purchase a stock rating for as little as $7.95 through www.WeissRatings.com, or starting at $15 by calling 800/289-9222. (1) Common stock and American Depository Receipt American Depository Receipt n. called in the banking trade an ADR, it is a receipt issued by American banks to Americans as a substitute for actual ownership of shares of foreign stocks. (ADR ADR - Astra Digital Radio ) traded on the New York Stock Exchange, the American Stock Exchange, or Nasdaq. |
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