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YRC Worldwide Inc. Message Board

  • johns.patrick johns.patrick Feb 1, 2011 10:30 PM Flag

    Wow, come on guys do a little more work

    1) today you were told you would be diluted in a few days with an additional 219,191 new shares beinging issued to pay the quarterly interest on the 69.4 million in debt. if you do the math the shares are being issued based on the stock price on 2/1. company owed 69,400,000 x 6% / 4 (qtrly) = $1,041,000 in stock must be issued to meet the interest payment. so they issued 219,191 new shares which is 4.75 a share

    2) the 13.11 has nothing to do with these shares. The company owes 69.4 million which can be paid with stock but there was a limit on the number of shares they could issue to and that number drops with every issuance of shares in leiu of cash interest payments. so now they only have 5,284,781 shares left to issue to pay off the debt and interest. the disclosure is telling you what the shares would be worth if they could close this debt by issue those shares or 69,400,000/5,284,781 = 13.13 (not sure why off .02)

    3) so this tells you that they are running through the stock set aside to pay the 69.4 million in debt very rapidly because they are having to issue it when the stock is valued at 4.75 instead of the price the stock was at when the original 70 million in new debt was issued. this is not good, this is very bad because it is clear they will have to issue a lot more shares to extinguish this debt and the debt holders do not have to accept anymore shares for debt beyond the originally agreed amount #. This actually seems to indicate that the new debt holders made a big mistake because they thought the stock would be worth closer to $13 than $5 right now

    4) this payment method was agreed to when the 70 million was issued. For those proclaiming this is a new deal, you are in over your head, these are complex financial deals and the rest of the market is on fire, why are you still hoping this stock will go up?

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    • I've run into to many folks from those schools that never actually did anything in the real world to give them much respect. As you stated, you're either smart or your not, can't learn that in school. I think the majority of people going to those schools these days are greedy and want to make it in a day (which they do) but they make a lot of bad decisions that blow up in the end. They don't care, they still have the $ in their pocket. Doesn't make them smart, they just have no scruples.

    • Most who post on this board do not want to hear the's that simple...

      • 1 Reply to ralphanlucy
      • How about I look at it this way...

        I own shares of YRCW. So does a very large bank. "We" (me and the bank) are now partners. The notice that this dilution will occur seems to have caused me no loss today as the stock was up 1.5%. This very large bank cannot sell their shares until I am way on the profit side of this trade. They also have a brokerage side that can start pumping this stock...buying shares to drive up the price...etc. So, as far as I am concerned this bank is stuck with YRCW until AFTER I make a profit. They have skin in the game to make sure YRCW does not go insolvent. All of this seems good to me personally. Now if I had bought this at $20+, it wouldn't mean a thing.

    • oh and by the way my analysis of the 8k was exactly correct and you are technically not correct, the company will be able to continue to issue shares for interest, as they just did. The rest of the items you are referring to are not really related to this particular 8k

    • yeah, but you're not. you are waiting to see who is following your messages. like I said, there are a lot worse obsessions to have. but it's important to note that you have one. Unless you really are a "paid basher" which I tend to think is a ridiculous idea. You are wasting time, this is not research right, you're not learning anything on this board

      Are you really short this stock? I wanted to go short but don't have the balls to go short

    • I only added this since everyone hates tx so much they won't listen.

      Stay long if you want but you are not reading this report correctly

      • 1 Reply to johns.patrick
      • from the same person or small group of people.. get a clue.

        they hate me because I post the facts and analysis they don't want people to see

        they can't refute the facts and analysis so they engage in lame personal attacks they have proven ineffective and gotten at least 5 of them deleted by yahoo recently

        you attempted to clarify but you didn't get it right either

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