Can These Stocks Survive Another Market Downturn?

Market downturns are one thing for large companies like GE, Microsoft, and McDonald’s and something else for companies like Blockbuster (BBI) and YRC Worldwide. Downturns lower a large cap stock’s price and attract new investors to buy shares. Struggling debt ridden companies like Blockbuster with penny stock prices can be driven out of business by severe corrections. Blockbuster is having enough trouble just trying to stay listed on the New York Stock Exchange. Blockbuster has a market cap of just $62 million dollars, well below the minimum listing requirement of $75 million dollars. Shares of Blockbuster currently trade for just 28 cents. Even the CEO has acknowledged that bankruptcy is a real option for Blockbuster. A severe market correction could easily drive shares of Blockbuster to the 10 cent or below range.