$1.20
-0.10 (-7.69%)
YRC Worldwide, Inc. (YRCW)
CAPS Rating:
The Company is a provider of transportation service and is a holding company that through wholly owned operating subsidiaries offers its customers a range of transportation services.
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Because the upper management at Yellow Freight is top notch. The number one concern at Yellow is the labor cost. They have asked for concessions from the Teamsters and the Teamsters have tentatively agreed but the membership will never agree to a direct pay cut. Although they may agree to an ESOP with a laid-off employee relief fund. Which means Yellow will have to do everything they can to get the price of their stock up just like they did to get the price of their stock down to get the Teamsters to the table. Yellow is one of the most under valued stock in the Fortune 500. I predict you will see $50 per share and 55,000 employees ready to buy. No joke, it may go as high as $100 a share which would mean it would become the most inflated stock in the Fortune 500. What people don't realize and what gets by investors is Yellow's business dealings with DHL and the fact that DHL left the United States and LTL business went to Yellow. There is a lot more to say but not enough space to say it. Yellow is a top notch company with a good track record.
If you do the math the tenative amount that is being offered by YRCW is $8,000,000. Now divide that $ 8,000,000 by the estimated Brother Teamsters who number roughly 40,000 strong. They would get 200 hundred share each. If the stock did go up to $100 that would amount to $20,000. The odds of this stock going to a high of $100 and the Trustees exercising the warrants at this price, at the precise moment are slim to none. More than likely the Trustees will exercise the warrants at various times in fractional amounts of the whole sum. I feel this stock will never hit it high of 60 plus dollars, but may go as high as $40. $40 multiplied by 200 is $8,000. Base pay is $22.68, multiply that by that by a 40 hour work week you get a base pay of $907.20 At minimum excluding any overtime you will be sacraficing 97.20 a week. Multiply that by the balance the contract experation of date, versus 4/1/13 verses the intion date of the wage reduction date of 1/1/09 (222 week) you get a total of $21,578.40 sacrificed pay excluding loss of 10% of overtime pay.