Yellow | Whats with the stocks?

Because the company is paying the bond holders with millions and millions of shares which all comes out of the same pie. Each piece just got allot smaller. Hope this helps.
 
Stock

It is the same as the man lost in the desert, sipping his last bit of water saying, "What is with those big birds up there?"
 
I've got a better question, now that the bondholders swapped bonds for stock, the debt to equity is 1.1 billion to 1 billion. That means the company owes 100 million dollars more than the assets it has. So why is the stock valued at anything.
 
The price is up a little because of the buyers covering their short sales. The bondholders dont own any shares yet. The stockholders still have to vote to approve the deal. When they approve the share price will drop because of massive amount of shares the deal will create. I have heard it will be about 15 cents a share.
 
I think the share price will go up to around $6.00 per share BUT BEWARE,this will be becuase of the REVERSE stock split coming...maybe looking at a 12-15 to 1 reverse ratio split...we'll see..good luck to all..
 
I'm assuming there is no sense in buying any stock unless you are a day trader until the swap has taken place? I'm talking about investing for the long term.
 
The reverse stock split is part of the bond-equity swap... Even after the split, the existing stock will be severly devalued... I'm amazed it's still close to a $1 for share but you won't be seeing any significant increases in YRC stock value... No profits, not dividends, no equity, why would anyone being buying YRC stock...
 
Top