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Yellow | Concessions for You—Not for Them

Here are a few choices:
Forced retirement.
Unemployment benefits.
Apply for a new job.
Send wife or partner to work.
Or just drink and cry.
 
Elwood said:
And kill the ‘golden goose?’ Naivety!!
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YRCW is but one piece in a larger pie. To us since it is a dominant entity it may seem like a “golden goose” and in many ways it may be. But in the larger scheme of portfolios it is just another puzzle piece.

Larger notes have been called before due to the overall health of company. There are many factors right now and up coming that can play into a future call. The Contract being one of the Big ones.

Right now Freight is steadily increasing across the board. I have spoken with many brokers and they are having a hard time getting loads moved, mind you most of that is full truck loads and not just LTL, but they all have said the same thing in the sense that if you are a trucking company and not making money right now somethings wrong.

The hole that this company dug by buying Roadway and USF alone is a China size hole. Add in that just about all the equipment needs upgradeing and replacing.. sure getting new here and there, but look around at other companies like size and their equipment.

The pension liability alone for this place is not a good selling point, the assets are depleted and worn out, for now Labor is a controllable factor, but 2019 it becomes a somewhat intangible. The shuffling of numbers for this place is incredible, but at some point a real audit of actuality’s may occur and it may just show a picture to the investors of a cancer asset.

So depending on Labor, one of the biggest operating costs in 19’ the “golden goose” will either sink or waddle along.

Remember though investors care nought about the personal aspects of investments such as your life or your buddy’s life.. they are only concerned with the return on said investment. They gave them another extension recently, but how many times will they is the question.

Under the current climate in logistics and freight the numbers for this company should be “ golden “, but with rolling stock issues and labor shortages across the board throughout the family of companies they are falling short. Customers will start to go elsewhere for service if service is an issue and it for sure is throughout this company. Add in the fact those same brokers I spoke about have nothing good to say about many of the companies within the family of YRC at the moment.

Can the golden goose be laid to rest? Yes it can! It has happened to bigger companies than this one in the past.

A more likely scenario depending on 19’ is either restructuring or bankruptcy, selling off divisions and possibly going non union. Labor is a huge factor in this and is truly the so called goose at the moment.
 
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