Recs

2
Player Avatar akbarcaskey678 (< 20) Submitted: 12/21/2010 6:12:04 PM : Outperform Start Price: $156.64 YRCW Score: -145.89

I think this stock is at least an easy double because their management is headstrong about this company's survival. I'm aware their balance sheet is absolutely horrendous, but with the economy rebounding their is going to be a real demand for reliable transportation services to get materials to where they need to be safely and on time.They employ over 25,000 people and with unemployment at 9.8%, 25,000+ new laid off workers applying for unemployment benefits would not look good in the monthly labor report. Nevertheless, that number may be trivial to the labor report, but my point is that YRCW is a huge company and despite their debt, I think they know what their doing when it comes to transportation services.

They just renegotiated with Teamsters a couple weeks ago and I always thought the thesis of a "double dip" recession, was unlikely when it was made public and I think is unlikely now so as long as the recovery remains relatively on track, YRC Worldwide will continue benefit and have opportunities to pay down their debt and maybe even renegotiate a more favorable contract with their creditors if business improves better than expected.

Member Avatar yrcwgoner (< 20) Submitted: 12/28/2010 3:40:24 PM
Recs: 2

Unfortunately the monies are still owed to the creditors including the Teamsters. YRC's published on time transit times are 1-2 days slower than FedEx, Conway, ODFL, etc. and they are not hitting these at all while the others are hitting over 97% on time. They continue to lay off front line supervisors that make the freight move on time and manage the workers to make sure damages are held to a minimum which they are not. They are trying to hang on to what they have and grow revenues with aggressive pricing, further reducing yield. They are being overrun by the competitions sales force, which is nearly double theirs. And they continue to lose long time accounts who have had enough. I have many good friends there and they are all just trying to hang on. they might make it but the competition's playbook, better service and lack of debt is a killer to overcome.

Featured Broker Partners


Advertisement