YRC WORLDWIDE INC COM STK USD1.00 (NASDAQ:YRCW)
The holding company for a handful of brands, YRC Worldwide is among the world’s largest providers of transportation services.
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With an aging work force in both teamsters,and experienced managment many carriers are faced with a serious short fall of qualifed workers. The kids these days have entirely different work ethic than most people who are presently in the biz, they do not want to work long hours,weekend,nights,be away from home 50% of the time, the list is endless. Yes you might ask how are the companies adding more drivers,dockpeople and management? They are coming from other companies that have been forced out of business but I do not see them coming from the younger labor pool so more people are exiting the biz than entering. What does this do for the customer nothing but decreasing service and that is the only thing that carriers provide and once it starts to deteriorate they sent their business elsewhere, but it will happen sooner or later to that company also some time in the future. I will be out of the biz in 10 yrs having been in the biz as of now for 33 yrs.
Recs
Trucking company that had a bit of tough 4th quarter. Market overreaction. Extremely low P/E, good cash flow. As long as economy keeps moving seems undervalued also has new transportation solutions and technology management services which is small but growing portion of business.
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fuel cost,lower also warmer weather better production on the road and dock,heating cost down in term.
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well managed transportation company, if we have a soft landing it will do well, plus yrcw is expending in China.
Recs
While industrial and material stocks have outperformed in recent years, transportation stocks have been perpetual dogs. As goods need to be transported, this deviation in performance should not be occurring. YRCW is attractively valued, and should do well once trends revert to historic norms.
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Bear Stearns
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great fundamentals, value and growth. Another great Kansas Company!
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The legendary John Neff is onto this one, and I'm intrigued by the largest U.S. trucking firm trading at a lower multiple than any of its peers. For the patient investor who could ride out an economic downturn.
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