Why YRC Worldwide, Inc.'s Shares Jumped 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: The wild week for YRC Worldwide's (NASDAQ: YRCW  ) shares continued but today the stock was up 11% in a steady rise, unlike the wild ride on Monday.

So what: A contract that the Teamsters union ratified over the weekend will meet conditions needed to help the company refinance its operations. About $300 million of debt will be converted into equity, and management is looking to refinance $1.4 billion worth of debt and was meeting with lenders to discuss yesterday.  

Now what: Bankruptcy appears to be off the table for now and the certainty is giving investors a reason to jump back in. Management expects EBITDA to grow by about $100 million next year to $350 million-$360 million, due primarily to the contract. There's definitely upside for investors if management can execute on its plans but analysts still expect a loss for this year so it's a speculative bet right now.

One stock to buy today
Want a safer pick for this year? The Motley Fool's chief investment officer has selected his No. 1 stock for 2014, and it's one of those stocks that could make you rich. You can find out which stock it is in the special free report "The Motley Fool's Top Stock for 2014." Just click here to access the report and find out the name of this under-the-radar company.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2815294, ~/Articles/ArticleHandler.aspx, 9/2/2015 12:51:22 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Travis Hoium

Travis Hoium has been writing for since July 2010 and covers the solar industry, renewable energy, and gaming stocks among other things.

Today's Market

updated 3 hours ago Sponsored by:
DOW 16,058.35 -469.68 -2.84%
S&P 500 1,913.85 -58.33 -2.96%
NASD 4,636.11 -140.40 -2.94%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/1/2015 4:00 PM
YRCW $15.28 Down -1.43 -8.56%
YRC Worldwide, Inc… CAPS Rating: **