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TForce | YRC Stock

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ibamars

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So I was looking at my stocks this morning on Scottrade. I had YRC set up to be one of the stocks to keep an eye on. So 2 weeks ago it was at a whole whopping .85c and in a few adays it went .98c. I look this morning its trading at .39c..

Even after all the concessions and debt-equity swaps they still can't catch a break.
 
their stock holders authorized a stock split so pretty much their company is being diluted with new shares that belong to the bond holders.
 
The stockholders authorized the conversion of preferred stock to common stock the preferred stock is somewhere around $100 a share, so for every 1 share of preferred you have you will get $100 (or whatever it is worth) worth of common stock which is worth 39 cent a share, the company is also selling 70 million of new stock once this is done 1 share of yrcw stock is basicaly worthless becuase there will be about a billion shares outstanding.

Basic calculation is you take the number of shares of a company divide it by the amount of projected earnings for the next or current quarter that will give you a what's called the eps or earnings per share it is a basic ratio of a companies financial strength, since yrc will end up with about a billion shares they will have to have a billion dollars in revenue to achieve a 1.
Thats impossible for them so there gonna do a reverse split probaly around a 40 to 1 which means for ever 40 shares you have now you will only have 1 once the reverse split goes through.
 
I was reading up in the YRC posts. It made me think twice on this deal.

Reverse Stock Split

What Does Reverse Stock Split Mean?
A reduction in the number of a corporation's shares outstanding that increases the par value of its stock or its earnings per share. The market value of the total number of shares (market capitalization) remains the same.

Investopedia explains Reverse Stock Split
For example, a 1-for-2 reverse split means you get half as many shares, but at twice the price. It's usually a bad sign if a company is forced to reverse split - firms do it to make their stock look more valuable when, in fact, nothing has changed. A company may also do a reverse split to avoid being delisted.
 
Well its a good dam thing i dont own any. I was thinking of buying when they get settled down. there is a possibility of maybe making some money off of it. Later down the road.
 
I'd put my money some place other than YRC. It is cheap, but the risks are great. If it does go to a penny a share, that would be 100 shares for 1 share worth a dollar. Even then, would this company be able to sustain a dollar a share? I am a truck driver not a stock expert. These thoughts are my own and do not represent expert advice. :BlahBlah:
 
Why should anyone be afraid they will make it, you sound like one of the playground bullies that say " i know you are but what am i". I have owned two stocks in the past that started having trouble and when they went under a buck a share for the prescribed amount of time they did a reverse split which brought up the price of the shares long enough for them to file bankruptcy, all those who still held the diluted shares were left with shares of nothing. I never said i wish yrc would fold up, but if it offends people to point out things that could happen, then so be it.
 
When a reverse split happens there is no value difference if you have 100 shares $1 each is no different than owning 50 shares worth $2 a piece or 1 share worth $100 a piece, but once they do the reverse split anyone who holds under a certian amount of shares will automaticaly be cashed out that will reduce the amount of stockholders in the company the little man is going to get pushed out and shave no vote on the company.
 
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