Example of good and bad company

Deloitte
#1

hey,

i have an interview with deloitte coming up and am stuck on the question asking for an example of a company that is doing well and one that isn’t and why. what would you say for that question?

#2

there are actually a lot to choose from for companies that aren’t doing well but what about those that are amidst the crisis?

#3

I posted this before in a thread but I would use a company like Primark. a cheap retail company like this bucks the trend of the credit crunch. As people start to feel the pinch they will decide not to purchase “long term” luxury designer clothes, but will search for cheap “short term” bargains.

Also I have always been told that an indicator of a recession is an increase in the price of shares of pizza takeaway companies (such as dominos). Instead of going out for meals during a recession/credit crunch a family may instead treat itself to a pizza delivery (a cheaper option), so you can expect shares in companies like dominos and pizza hut to increase around this time.

Hope this helps

#4

Good: Shell, BP, British Gas etc etc.
Bad: Any number of construction companies, house builders, banks.

Not that hard really, bit of common sense.

#5

great…thank you!