Panzer_4183
Long

YRCW - case study of turnaround company

NASDAQ:YRCW   YRC WORLDWIDE INC
75 0 0
YRC is one of the biggest trucking companies on the USA market. The company in recent years had its share of bad fortune and recession which reduced this mighty giant to almost a penny stock . Buying out competition and spending more then they could afford putted them in almost bankrupt situation.

But as you know ""Buy on the sound of cannons, sell on the sound of trumpets"".

Long story Short!

When almost everyone was advocating for BK             , company management made a sallto mortale and pulled negotiations with Union, reducing the wage cost, and allowing it self to negotiate the debt with the lenders. During this negotiations stock jumped from 7.28 pps to 27 pps in less then a 4 months. Remarkable recovery for once a BK             company.

Can YRC continue the winning streak ?

Good news is that wage cut and other benefits which were given by the lenders, will save 60 to 70 million USD per year. Plus company has beat analysts earning estimates in Q4 2013 by 24% and that was without wage cuts.
Q1 is scheduled by the end of April and rumors are that its going to beat the analysts estimates again. Company cleared its problems with workers , lenders and union so it has open road for its fleet.

Some interesting things:
Insider holders have 21.36%
Institutions 18.40%

Almost 5 million shares are short out of 16.80 million shares float. Short interest is building up nicely. So at the moment the stock (19.75) is falling down without any fundamental reason. That usually smells on Market Makers work in progress.

Is this a good news ? By removing the weak holders institutional buyers will have opportunity to get the stock cheap, and fuel it up. Its a nerve playing game but old as market it self, remember the"Buy on the sound of cannons, sell on the sound of trumpets" i think its happening right now. So sit tight and ride out the storm, this game will continue for 2 more weeks, until the Q1 report is out.

Technical side:
Price is in the Ichimoku cloud .

Support 1: 19.70 Support 2: 16.40
Resistance:
Resistance 1: 23.30 Resistance 2: 25.60
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