YRC Worldwide Inc (YRCW)

[MIBMLP1963]

This is what the street is saying about YRCW..Its going to take a Yest Vote and a Loan to get this to perform the way it should.. The Teamsters agreement requires a 300 million dollar loan by Mar 2011. It might get a bit testy over the next few months...

Earlier today, Longbow Research analyst J Douglas Woodrich maintained his Neutral rating on YRC Worldwide. Woodrich also maintained his earnings estimates for the company. In his research note to investors, Woodrich said that the deal with the Teamsters and the reverse stock split announced by YRC Worldwide this week are positive, clearing the way for a replacement of current CEO Bill Zollars, who announced this week that he will retire as the CEO of the company upon successful completion of the company’s comprehensive recovery plan. Woodrich said that the initiatives taken by the company improve its long-term survival prospects. However, he added that the stock should be still avoided as the company still has sizeable debt and lackluster tonnage. Woodrich wrote that he would like to see the company win back customers and improve its package yield.
Meanwhile, Jason Seidl, an analyst with Dahlman Rose & Co. maintained his Hold rating. In his research note, Seidl expressed concerns about the substantial dilution as a result of the agreement with Teamsters. The agreement requires the company to raise $300 million in March, wrote Seidl, and also requires it to convert its debt to equity. Seidl also has doubts on whether the deal will be approved by the union’s vote.

David Ross, an analyst at Stifel Nicolaus, cut his rating on the YRC Worldwide stock from Strong Sell to Hold. Ross wrote that the reverse split will significantly reduce stock’s liquidity. He also said that the split will require investors to trade more on the company’s fundamentals, which at the moment are quite poor.

The current consensus recommendation on YRC Worldwide is Underperform. The stock has 6 Hold, 4 Underperform and 2 Sell ratings at the moment.



Read more: http://www.beaconequity.com/a-look-at-how-3-analysts-view-yrcw-and-why-2010-10-01/#ixzz118ovUo9B