Comments on: Is YRCW the Next SPNG? Part II http://www.beaconequity.com/is-yrcw-the-next-spng-part-ii-2010-07-29/ There's a weird trick to finding hot penny stocks, and we know it! Receive Free Stock Alerts about all the tricks of the penny stock trade. Tue, 07 Feb 2012 21:49:54 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: TA66 http://www.beaconequity.com/is-yrcw-the-next-spng-part-ii-2010-07-29/comment-page-1/#comment-7003 TA66 Sat, 31 Jul 2010 02:58:45 +0000 http://www.beaconequity.com/?p=12470#comment-7003 You're clueless. When YRCW did 9.6 billion in revenue and made 500 million per year the highest their market cap ever reached was 3.6 billion. Now, you are suggesting that a company that has less than half the revenue they once had and no current profits suddenly warrants a market cap of over 5 billion??? Only one LTL trucker trades at a valuation of more than one times sales and that is ODFL. They are "best in class". Others trade at an average of .4 times sales which would get YRCW to a max price of $1.50. However, YRCW is receiving 30 million per month of pension payment forgiveness that expires this January. YRCW is enjoying a 15% wage cut from their employees. YRCW enjoys 25 million per quarter of deferred bank interest that starts back up again in 2011. Furthermore, YRCW has already indicated a desire to raise 100 million in cash by triggering their shelf registration. This will dilute the common shareholder by adding 200-250 million shares of common stock. You guys better do a little more research on this one. You’re clueless. When YRCW did 9.6 billion in revenue and made 500 million per year the highest their market cap ever reached was 3.6 billion.

Now, you are suggesting that a company that has less than half the revenue they once had and no current profits suddenly warrants a market cap of over 5 billion???

Only one LTL trucker trades at a valuation of more than one times sales and that is ODFL. They are “best in class”. Others trade at an average of .4 times sales which would get YRCW to a max price of $1.50.

However, YRCW is receiving 30 million per month of pension payment forgiveness that expires this January. YRCW is enjoying a 15% wage cut from their employees. YRCW enjoys 25 million per quarter of deferred bank interest that starts back up again in 2011.

Furthermore, YRCW has already indicated a desire to raise 100 million in cash by triggering their shelf registration. This will dilute the common shareholder by adding 200-250 million shares of common stock.

You guys better do a little more research on this one.

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