Why Shares of YRC Worldwide, Inc. Went on a Wild Ride Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of YRC Worldwide, (NASDAQ: YRCW  ) wend on a wild ride today, climbing 10.5% in early trading and plunging as much as 13.4% late in the day.

So what: The moves all came after YRC and the Teamsters union ratified a contract extension to its collective bargaining agreement that will last until March 2019. This will allow refinancing to go through that will reduce debt and improve the company's balance sheet.  

Now what: This is good news for the long-term, but the stock has more than tripled since hitting a low in November, and investors may be taking some profits. Volume spiked late in trading when shares were falling so someone was ready to get out. This will be good for the company, although I don't see it as a situation to buy considering the huge losses expected again this year.

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  • Report this Comment On January 27, 2014, at 4:08 PM, Mustang6147 wrote:

    The Teamsters at YRC just voted themselves out of a job.

    Who would approve a contract with no checks and balances on how money gets spent, or how to pay down the debt? The Teamsters did. Refi 1.4 billion. Give back 15 % of your wages and 6% of your work, pus city work outside 50 miles, all for the CEO's bonus. Did this just happen?

  • Report this Comment On January 27, 2014, at 4:47 PM, cocosimmi wrote:

    Hate to tell you you're getting a cut in pay in the near future and another one when we go under! Yellow has no intention of showing a profit. What they did was another 3 billion dollar rip off. Our position is to keep our jobs until these corporate rats take us out and replace us with 10$ an hour scabs. Unfortunately for them their profits aren't going to increase.

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