YRC Worldwide Inc (YRCW)

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from YRCW site

Financial FAQs

Q: What factors are impacting the per-share price of YRCW stock?
A: Factors unrelated to actual company performance can impact the price and trading volumes of YRCW stock. Markets overall have seen increased volatility recently and YRCW has been a top "short-selling" target. At lower stock prices and with market fluctuations, short-term traders can buy significant blocks of stock and come in and out of the market to yield gains for themselves. Before the December 2009 conversion of our bonds to equity, our market capitalization was around $60 million with only 60 million shares outstanding. When the number of YRCW common share increased to approximately 1 billion, the market cap actually increased to around $750 million. It has taken several months for the per-share stock price to reflect the 1 billion shares outstanding. In addition, the stock price is likely impacted by anticipation of a reverse stock split. The YRC Worldwide board of directors will determine a date and ratio for the reverse split in the future.