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What: Shares of trucker YRC Worldwide
So what: The embattled trucker has been whacked around quite a bit by Mr. Market as it tries to regain its footing and show lasting viability. The primary issue? A hefty debt load that threatens to send the company to bankruptcy if it can't get its cost structure under control and return to profitability. Recent news has provided a glimmer of hope as the company reached a tentative agreement with the International Brotherhood of Teamsters. A reverse stock split also kept the shares from being delisted. But stock market action suggests investors are still wary -- the stock has lost more than 40% since Sept. 29.
Now what: There's a very real business backing up YRC's stock, and if the company can successfully navigate its turnaround, investors could be seriously rewarded. But turnarounds are never a cakewalk, and a limping economy is certainly no help. For investors looking for a highly volatile bet, I think YRC has some merit. However, investors looking for a solid, reliable investment are best off looking elsewhere.
Interested in more info on YRC Worldwide? Add it to your watchlist here by clicking here.
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Fool contributor Matt Koppenheffer does not own shares of any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter @KoppTheFool or on his RSS feed. The Fool’s disclosure policy assures you no Wookiees were harmed in the making of this article.