YRC Worldwide Loses 5% in Today’s Trading; Still Top Stock to Watch

Posted by on Aug 04, 2010 | No comment

YRC Worldwide Inc. (NASDAQ: YRCW), the Overland Park, Kansas-based transportation company, reported its second-quarter financial results, on Tuesday. The company reported a net loss of $9.5 million, or $0.01 per share, for the second quarter of 2010, compared with a net loss of $309 million, or $5.20 per share reported for the second quarter of 2009. Analysts were expecting YRC Worldwide to report second-quarter loss per share of $0.09.

The company reported cash usage from operating activities of $33 million, for the second quarter of 2010. The cash usage for the second quarter included working capital requirements and other expenditures. At the end of the second quarter, the company had cash and cash equivalents of $144 million, unused restricted revolver reserves of $129 million and unrestricted availability of $8 million.

Compared with the second quarter of 2009, YRC National Transportation’s tons per day and shipments were down 18.6% and revenue per hundredweight and revenue per shipment were up 3.9%, for the second quarter of 2010. Meanwhile, compared with the same period last year, YRC Regional Transportation’s tons per day were up 4.6%, shipments per day were down 3.1%, revenue per hundredweight were down 2.8% and revenue per shipment were up 4.9%, for the second quarter of 2010.

Bill Zollars, chairman, president and CEO of YRC Worldwide, said that the company is pleased with the sequential improvement in its business volumes and earnings as its pricing discipline, customer mix management and cost initiatives gain significant traction. Zollars said that for the second quarter of 2010, the Regional companies reported positive operating income, and YRC National achieved positive adjusted EBITDA.

Zollars also said that with the significant operating momentum the company achieved throughout the second quarter and in July, it is now positioned for further growth, and it expects to achieve positive adjusted EBITDA in excess of the second quarter.

The penny stock of YRC Worldwide has seen a huge rally in the past few weeks. The rally, finally, ended on Tuesday, after the company reported its second-quarter financial results; however, not before the penny stock could achieve more than 130% gains in the past one month. Year-to-date, the penny stock is down 60.38%. It has a 52-week range of $0.10-$6.18. The penny stock is trading below its 10-day and above its 20-day and 50-day moving averages, currently. The stock has a support level at $0.27 and a resistance level at $0.41.

* 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/

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 on the underserved OTC stocks market, or “penny stock” market, which has 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.

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.

Copyright Beacon Equity @ 2012