R-14Driver
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Improving fundamentals? On the surface this title sounds ludicrous. YRC Worldwide (YRCW) has $1.3 billion in long-term debt, it pays $151 million in annual interest expense, and it has significant pension obligations. However, the facts don't lie and the facts are that trends in operating income and gross margins are improving dramatically.
While YRCW hasn't really participated in the rally this year, I stand by my belief that this could potentially be one of the best performers in the market over the next couple of years as the economy continues to gradually improve and as management maintains its focus on improving ontime deliveries and removing unnecessary expenses from its network. The turnaround going on with YRCW is similar in many ways to recent turnarounds at Sirius (SIRI), Nexstar Broadcasting (NXST), Hovnanian (HOV) as well as the turnaround at Foster Wheeler (FWLT) back in 2004, all of which provided investors with astronomical returns. Every one of these companies had huge debt loads and negative equity right when the stock began rallying hard.............................
Buy YRC Worldwide Based On Improving Fundamentals - Seeking Alpha
While YRCW hasn't really participated in the rally this year, I stand by my belief that this could potentially be one of the best performers in the market over the next couple of years as the economy continues to gradually improve and as management maintains its focus on improving ontime deliveries and removing unnecessary expenses from its network. The turnaround going on with YRCW is similar in many ways to recent turnarounds at Sirius (SIRI), Nexstar Broadcasting (NXST), Hovnanian (HOV) as well as the turnaround at Foster Wheeler (FWLT) back in 2004, all of which provided investors with astronomical returns. Every one of these companies had huge debt loads and negative equity right when the stock began rallying hard.............................
Buy YRC Worldwide Based On Improving Fundamentals - Seeking Alpha