The fact is YRCW needs money. There are two ways they can raise money: equity or debt. With the stock price at this level, it is very hard and expensive for YRCW to raise money via equity's. Lenders (probably the shorts) are keeping the stock price at this level and lower to force YRCW to use debt financing and at their term.
YRCW is selling assets to finance their operations. YRCW has been telling investors they are selling assets so do not be alarmed by these sales.
I am long and will continue to add to my position, and day-trade this stock. If you cannot afford to be in this stock, don't. YRCW is extremely risky. You have to know what you are doing to break even and luckily good to make a killing of this investment.
Perhaps that's why the big investment banks are driving down the pps so Ycrw can't dillute or vice versa so they can buy more shares at cheap prices. I think they are shorting against their existing longs position and convertibles to hedge against and profit from this drop. As far as I know retail investors can't short at these prices.
Q1 2101 YCRW lost -.33 cents against an estimated -.48 for a surprise of .15. that should have been good news. On July 26 for Q2 2010 they're expected to lose .10. That sounds like quite an improvement to me from the -3.53 and -2.66 from last year this time.
Yet the pps is down 99%. It seems the banks want YRCW to fail and go BK but the mgmt seems to be doing all the right things to keep this from happening. Unfortunately, the employees are the ones that have to bite the bullet in the meantime. Better to bite it than be out of a job though. Good luck YRCW!
kg i am long, but unfortunately there is 1 billion shares now which changes the eps. however, at -.10 eps they loose 100 million. i expect them to be -.05 eps....50 million which will be pretty good. we'll see....lotta shorts prolly 25% float...i believe if institutions didnt sell, we are in for a treat come earnings.
If you are into conspiracy though, YRC could be the victim of the "New world order" as more and more companies are being forced into Bk so the bigger conglomerates can swoop them up for pennies on the dollar just like JPM, WFC, and BAC did with the failing banking sector. Bear raids on Lehman, Wamu, Bear Stearn, and Merrill Lynch forced incredible bargains for those in position to make the deal. By 2012 we'll see a corporate world of mega conglomerates in every sector of the economy as the fat cat, black hat bankers will own most of every large corporation and will collect the lion's share of dividends of the entire global economy. Rich get richer- poor get poorer. It's been a plan of theirs for a long long time culminating as we speak.