YRC Worldwide Inc (YRCW)

[STOCKSEEK]

Read the report from Five Stars:

http://ctt.marketwire.com/?release=861943&id=1363564&type=1&url=http%3a%2f%2fwww.fivestarequities.com%2fYRCW

It is a pretty good summary of the business. Particularly take a look at enterprise valuation vs current market value.

Enterprise value estimate is $1.22B and is continuing to grow everyday as their turnaround takes effect. Current market cap is somewhere around $55M.

That's an undertrade ratio of 22x, equalizing that based on current market price - trade price reflecting current but growing enterprise value would be a share price of $172/share.

Current cash is the highest it's been at any point reported in the report at $260M.

Current ratio is the materially better than the industry average.

Liquidity has been restored and operating results continue to improve significantly.

The business has new leadership focussing the business on a core business model after years of shotgun acquisitions which diluted profitability.

Economic downturn exacerbated the profitability impact of poor strategic decisions and lack of focus by management. Economy has now swung and is improving reversing that compounding economic effect on the P&L.

This business is one of the largest transportation groups in the world.

Growth rates exceed industry averages which will yield compounding results in profitability as their overall asset utilization improves.

I could go on forever here...

SS