YRC Worldwide Inc (YRCW)

[MagicCap]

only minor adjustment i would make is the make whole premiums have been paid out in shares and that's equivalent to the annual interest rate or 10% of the shares convertible on the notes every year.

So there are about 14 million shares left from convertible notes and about 1.4 million per year of make whole premiums. they should be converted in full by end of 2014 so i'm estimating 14 + 1.4 + 1.4 = 16.8 million.

share count was 9.2 million in mid Feb so that would make it a total of 26 million shares. 26 x 19.2 = $499,200,000 market cap currently. divided by revenues of $4.8 Billion = 0.104 price to sales. ABFS is around 0.19 - 0.20 i think now.

I was originally thinking YRCW would get to $40 in 2014 based on a price to sales of 0.20. they will probably have a discount to the industry avg because there is still the threat of giving back some of the concessions when they have to renegotiate with the IBT after the contract expires. so still a double from here.