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What: Shares of trucker YRC Worldwide
So what: When a company is teetering on the edge of bankruptcy, any news that pushes it in the "no bankruptcy" direction is great news for investors. In today's announcement, management put both tonnage and revenue per shipment above second-quarter levels. More importantly, the company said that combined EBITDA for the second and third quarters would be between $82 million and $86 million, which is more than enough to avoid tripping covenants on its credit agreements.
Now what: It's been a wild ride for YRC shareholders, and until the company is back on firm footing I don't see that changing. Investors looking for more stability within the trucking industry can look toward currently profitable companies like J.B. Hunt
Interested in more info on YRC Worldwide? Add it to your watchlist by clicking here.
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