6. American Apparel

Sector: Retail

52 Week Stock Performance: +13.7 Percent

American Apparel has had a long-term relationship with controversies. Most of them are generated from its not so politically correct and obscene CEO, Dov Charney. Charney also has faced a variety of lawsuits, all pertaining to different areas. Some are based on improper treatment of labour to many pending cases of inappropriate behaviour.

Bear Case: American Apparel has seen its fair share of losing its market share and stock value due to its CEO’s actions. Moreover, its losses are piling up day by day, especially in 2010 and 2011. Though the comaony is witnessing better sales this year, it needs to prep up its reputation to improve its market share and value.