YRC Worldwide Is out of Its Mind

When YRC Worldwide  (NASDAQ: YRCW  )  revealed its plan to buy rival Arkansas Best Corporation (NASDAQ: ARCB  ) earlier this month, a lot of people wondered if the company was crazy -- trying to buy a rival three times its own market cap, and it, YRC, in hock to the tune of $1.2 billion (net of cash) to boot!

The craziest revelation, though, is that Arkansas Best may not be 100% dead-set against the idea, despite YRC's record of losing money, piling on debt, and nearly going bankrupt two years ago. As Fool.com contributor Rich Smith explains, even if Arkansas Best is looking to do a deal with someone, it has much better options than hitching its wagon to YRC.

With the European debt crisis and slowing growth in China many investors are worried about heady growth going forward, but fear not, because the future is made in America. Domestic manufacturing is poised to once again become the investment driver of the world, and all because of one disruptive technology. You can uncover the three companies that will become the American Steel of tomorrow in The Motley Fool's new free report. Just click here to read more.


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  • Report this Comment On May 20, 2013, at 7:33 PM, spwangsu wrote:

    The comment on the stocks of ABFS and YRCW seems are based on their operations two years back, not current. Actually, ABFS has negative operation gain. It is way too small to compete in the industry (to YRCW or CNW). YRCW has actually operation positive cash flow except its interest payment burden. Its yoy operation improvement has made the ground for it to rise from the ashes. ABFS and YRCW merger sounds like a good one to combine the better balance sheet (ABFS) and operation cash flow( YRCW), which will improve its borrowing ability (lower interest rate) and gaining competition advantages. Overall it makes a lot sense.

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