YRC Worldwide Inc. (NASDAQ:YRCW) offers a range of transportation services, including global transportation, national transportation, regional transportation and also logistics services. Its subsidiaries are: YRC National Transportation, that provides transportation service focused on businesses in regional and international markets; YRC Regional Transportation, provides regional business transportation services; YRC Logistics plans and coordinates the movement of goods worldwide and provides logistics management solutions. YRC Worldwide also offers its expertise in heavyweight shipments and flexible supply chain solutions. The company is headquartered in Overland Park, Kan.
YRC worldwide is facing a major financial challenge. The company is having a problem with sustaining liquidity, dilution of preferred stock, loss of customers and a weak LTL market. The company is trying its best to steady its finances in every possible way. Despite the prudent actions taken by YRC Worldwide to manage its liquidity, the company will require additional cash for its business operations.
In the second quarter, the company managed to save $85 million expenses in relation to pensions. However, this will lead to increase in the pension liability for the company in Jan. 2011 to more than $300 million. The company’s management is desperately trying to renegotiate the agreement with the union, failing which YRC worldwide will face a severe liquidity crunch.
Since last year, YRC worldwide securitized a portion of its debt. The company has done this by issuing 1.2 billion common shares. This massive dilution of equity significantly reduced the stock value of the company. The company is considering a reverse stock split by the conversion ratio and conversion date is yet to be finalized.
YRC worldwide recently sold its Logistics business to generate funds for the company. The company received a gross consideration of $38.7 million. The measures taken by the company like debt to equity exchange and divestment of its logistics business will help the company’s liquidity problem. However, the company has still to do a lot more to manage the current liquidity problem.
The penny stock of YRC Worldwide Inc. has a 52-week range of $0.10-$6.18. Year-to-date, the penny stock is down 69.16%.
- Want more? Check out the message board buzz for YRCW
- See what newsletters are recommending this stock here
- Get breaking news alerts on this stock: http://thestockmarketwatch.com/
- Need fast service and cheap rates from a broker? Buy stock online at my favorite brokerage
- See today’s top stock picks and market analysis
- Want more? Check out the message board buzz for these stocks
- See what newsletters are recommending these stock picks
- Get breaking news alerts on these stocks: http://thestockmarketwatch.com/
- This newsletter has been helping traders make a killing on these stocks. Click here for a 25% discount offer.
About BeaconEquity.com
BeaconEquity.com is committed to producing the highest-quality insight and analysis of small-cap stocks, emerging technology stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily OTC stocks in the stock market today, which have traditionally been shunned by Wall Street. We have particular expertise with renewable energy stocks, biotech stocks, oil stocks, green energy stocks and internet stocks. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.
Beacon Equity Group Disclaimer
This newsletter is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Beaconequity.com is a wholly-owned subsidiary of BlueWave Advisors.
While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.
