YRC Worldwide Inc (YRCW)

[MagicCap]

I'm thinking $3+ EPS in 2013, fully diluted. It all depends on what the multiple is that people are willing to pay if it gets there. My guess is if it hits this level then $30 to $50 by the end of next year.

My estimates don't take into account the potential positive impact from renegotiated loans if they can put up a couple of profitable quarters. That will definitely happen and Rogers mentioned it in the BB&T presentation. The amount of leverage in this company relative to the market cap, even with all of the convertible notes taken into account, is crazy. Fully diluted right now the company is worth about $140 million. On sales of $4.9 billion. That's a price to sales of 0.029. It doesn't take much revenue growth to make a significant impact on the bottom line.

like I said, the convertible notes are actually a good thing longer term. They will lower interest expense by $24 million annually. So even though the share count goes up about 12-13 million from here (from 9 million to 21-22 million), EPS goes up over $2.00 from lower interest expense. That's huge.