Negative press about Chevron (NYSE: CVX) has reached a boiling point after news that the oil company had been hit with a $9.5 billion ruling by an Ecuador count. The penalty comes from pollution of the local rain forest. Chevron said it will appeal the court’s decision.
Note: The Flame Index scans thousands of news sites 24 hours per day and ranks companies getting the most negative press right now. The Flame Index Media Analysis Algorithm crunches the data for an up-to-the-minute ranking of the worst companies.
The Flame Index started as a research tool in 2008 at the NY Innovation Design Lab (nyidlab). It was used as a general metric to evaluate companies and their risk in the media. Publicly-traded Fortune 500 companies are used as a measure to calculate an overall market of negative news and the companies are ranked within that market.
-Douglas A. Mcintyre
|Rank||Company||Score||Change in Rank||Comments|
|1||Chevron||44.038||+43||Chevron loses suit in Ecuador. Penalty of $9.5 billion.|
|2||Fannie Mae||39.908||-1||Concern that the federal government will shutter the company and wipe out common shareholders.|
|3||Freddie Mac||33.699||-1||Another government-controlled mortgage entity that may be phased out in favor of private market lending.|
|4||DISH Network||33.581||+65||Echostar operation will buy Hughes. Price upsets shareholders.|
|5||Borders Group||21.601||-2||Bankruptcy usually causes negative press reactions.|
|6||Ford Motor||20.615||+164||China car sales drop sharply in January.|
|7||Wal-Mart Stores||20.197||+24||Major brokerage downgrade.|
|8||CF Industries Holdings||19.43||+68||Accident at its Hardee Phosphate Complex causes death.|
|9||Toyota Motor Corporation||18.725||-4||Fire closes plant that makes best-selling Prius.|
|10||Retail Ventures||18.506||+5||Buy-out by DSW hits legal hurdles.|
Data and ranking provided by the Flame Index.