These gold etf stocks are nothing more than a day trade. No control over the way they are traded and to trade long is not smart in my opinion.
Yrcw has had plenty of time to right this ship. if this qtr numbers don't perform to investors standards I believe the road has been ran. I don't think any more time is needed to assume that this company is finished.
I worked for a company YRCW bought out. Great company but was on decline since YRCW took over because of the financial problems. I posted an article the other day about Holland and wasn't to be detrimental about YRCW. Trucking is hard work and when your employees aren't happy working for you it becomes awfully expensive for that particular company. YRCW only competition is with themselves. 5 billion in revenue is plenty of revenue to work with but without the employees on your side it's nearly impossible to show profit. Without the teamsters stepping up and really showing they can make YRCW profitable this is too much of a risk for my money. I've owned companies and employees are your most important asset. If a majority of employees are costing you more than you make than do the math. IT DON'T WORK
Before the decline in dust a few weeks back the decline started when gold was down dramatically and gdx was up.
The regionals have been the part of YRCW that have showed solid profit over the past few years. Setting aside an additional 50 million just for Holland to cover these additional expenses is quite large in 2014. I am just interested in the overall trends here and I don't like this article.
YRC's Holland regional unit posts weak operating performance in 2014
Workmen's comp costs, bodily injury claims, cargo claims soar.
By Mark B. Solomon
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For years, the regional less-than-truckload (LTL) operations of YRC Worldwide Inc. has been a steady and solid performer, and, by many estimates, its Holland regional unit has been the best of the three companies that comprise YRC's regional business.
But there may be some tarnish forming on the Holland crown.
The Holland, Mich.-based company, which serves the U.S. Midwest, Southeast, and Ontario, Canada, posted surprisingly weak operating metrics for 2014, according to an internal newsletter published at the end of November. Workers compensation costs rose 21 percent year-over-year. Bodily injury and property damage costs increased by 52 percent. Cargo claims rose 42 percent. Bodily injury and property damage claims due to vehicle collisions rose 273 percent.
The higher number of workmen's compensation claims forced Holland to set aside $51 million in reserves last year, a 65-percent increase from 2013 levels, according to the newsletter. Holland's 2014 accident rate based on injuries sustained was roughly twice the industry average, according to the newsletter.
Holland President Scott Ware wrote that the data shows the company's workers are "taking far more risk and not assessing the right outcome when it comes to working safely" when compared to peers at other trucking firms. In a reflection of that, most Holland workers who get injured are hurt more than once, Ware said.
In a broad-based effort to reverse the trend, Holland has launched a mentoring program for new hires, increased the level of training for management and support staff, and upgraded its regularly scheduled maintenance programs, Ware said. He did not divulge details in the letter. A YRC spokeswoman did not reply to a request for comment.
Stephen Walski, who has been a Holland driver for nearly 20 years, said the 2014 data is the worst he's seen since he joined the company. The situation has not improved in the six weeks since the newsletter was published, Walski said in an e-mail a few days ago, with weather-related issues adding to the problems that already existed.
Walski was one of the few rank-and-file workers that spoke out publicly against a five-year contract extension agreed to last January by YRC workers. He pinned the subpar Holland numbers on poor employee morale that resulted from the outcome of a protracted battle that nearly put the company in bankruptcy protection. Walski said that, in the wake of the contract battle, worker sentiment at Holland has soured to the point that "employees don't go above and beyond anymore." He added that the number of inexperienced new hires contributed to the subpar performance during 2014.
The January extension kept in place a 15-percent wage cut that unionized workers agreed to in 2010. It also does not require the company to raise its pension contribution levels, which had been reduced by 75 percent several years ago as a cost-saving measure. In each of the first two years of the new contract, lump-sum payments will be made to workers in lieu of hourly wage increases. Wage increases will take effect during the third year and be in force for the remainder of the contract.
YRC management said a contract extension was a requirement for lenders to agree to a restructuring of $1.14 billion in debt and a reduction in the company's onerous interest rates
Your a genius. Maybe you should be a financial advisor and predict the future movement of various stocks. Your alone in the the ability to do so!
Yrcw following market. This isn't being traded on fundamentals. Fear and greed. Good for day trading but like I said when this market really tanks YRCW will go with it.
Couple weeks ago this stock didn't move over a few days and dow was up 1000 points. if this market really turns down this stock will tank. It has 0 support. This market is awfully dangerous right now and the chances of this tanking with market are extreme.
They don't know anything. Either invest for long term or worry about daily fluctuations. Your choice.
Maybe this whole company is designed around making upper management and bankers very wealthy.
Well where did you get a 60% turnover at non union at. I question that statistic because not a company in the world could perform like the non union like Reddaway with that type of reduction in workforce. Without the regionals Yrcw would not be in business today.
Go look it up. My comment on seeking alpha is Seeking Alpha Provides Haven for Manipulators
When it comes to small and micro cap stocks, be very very careful with Seeking Alpha. Hedge fund managers have figured out that they can manipulate all the retail investors who read articles on the site. Some of these managers publish deceptive research and take advantage of small investors. Someone started this petition to get the SEC involved: https://www.change.org/p/israel-securities-authority-impose-oversight-and-controls-on-seeking-alpha-to-prevent-manipulation-of-small-cap-equities
I get discouraged when my money doesn't increase in value. Dow up 1000 in a week and this stock hardly moved. But I know from experience that I can look at many different stocks that acted this way and I sold a quite a few to soon that soon doubled. So patience everyone. GLTA
Are much lower oil prices good news for the U.S. economy? Only if you like collapsing capital expenditures, rising unemployment and a potential financial implosion on Wall Street. Yes, lower gasoline prices are good news for the middle class. I certainly would rather pay two dollars for a gallon of gas than four dollars. But in order to have money to fill up your vehicle you have got to have an income first. And since the last recession, the energy sector has been the number one creator of good jobs in the U.S. economy by far. Barack Obama loves to stand up and take credit for the fact that the employment picture in this country has been improving slightly, but without the energy industry boom, unemployment would be through the roof. And now that the “energy boom” is rapidly becoming an “energy bust”, what will happen to the struggling U.S. economy as we head into 2015?
At the start of this article I mentioned that much lower oil prices would result in “collapsing capital expenditures”.
If you do not know what a “capital expenditure” is, the following is a definition that comes fromInvestopedia…
“Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment. This type of outlay is made by companies to maintain or increase the scope of their operations. These expenditures can include everything from repairing a roof to building a brand new factory.”
Needless to say, this kind of spending is very good for an economy. It builds infrastructure, it creates jobs and it is an investment in the future.
In recent years, energy companies have been pouring massive amounts of money into capital expenditures. In fact, the energy sector currently accounts for about a third of all capital expenditures in the United States according to Deutsche Bank…
US private investment spending is usually ~15% of US GDP or $2.8trn now. This investment consists of $1.6trn spent annually on equipment and software, $700bn on non-residential construction and a bit over $500bn on residential. Equipment and software is 35% technology and communications, 25-30% is industrial equipment for energy, utilities and agriculture, 15% is transportation equipment, with remaining 20-25% related to other industries or intangibles. Non-residential construction is 20% oil and gas producing structures and 30% is energy related in total. We estimate global investment spending is 20% of S&P EPS or 12% from US. The Energy sector is responsible for a third of S&P 500 capex.
These companies make these investments because they believe that there are big profits to be made.
Unfortunately, when the price of oil crashes those investments become unprofitable and capital expenditures start getting slashed almost immediately.
For example, the budget for 2015 at ConocoPhillips has already been reduced by 20 percent…
ConocoPhillips is one of the bigger shale players. And its decision to slash its budget for next year by 20% is raising eyebrows. The company said the new target reflects lower spending on major projects as well as “unconventional plays.” Despite the expectation that others will follow, it doesn’t mean U.S. shale oil production is dead. Just don’t expect a surge in spending like in recent years.
And Reuters is reporting that the number of new well permits for the industry as a whole plunged by an astounding 40 percent during the month of November…
Plunging oil prices sparked a drop of almost 40 percent in new well permits issued across the United States in November, in a sudden pause in the growth of the U.S. shale oil and gas boom that started around 2007.
Data provided exclusively to Reuters on Tuesday by industry data firm Drilling Info Inc showed 4,520 new well permits were approved last month, down from 7,227 in October.
If the price of oil stays this low or continues dropping, this is just the beginning.
Meanwhile, the flow of good jobs that this industry has been producing is also likely to start drying up.
According to the Perryman Group, the energy sector currently supports 9.3 million permanent jobs in this country…
According to a new study, investments in oil and gas exploration and production generate substantial economic gains, as well as other benefits such as increased energy independence. The Perryman Group estimates that the industry as a whole generates an economic stimulus of almost $1.2 trillion in gross product each year, as well as more than 9.3 million permanent jobs across the nation.
The ripple effects are everywhere. If you think about the role of oil in your life, it is not only the primary source of many of our fuels, but is also critical to our lubricants, chemicals, synthetic fibers, pharmaceuticals, plastics, and many other items we come into contact with every day. The industry supports almost 1.3 million jobs in manufacturing alone and is responsible for almost $1.2 trillion in annual gross domestic product. If you think about the law, accounting, and engineering firms that serve the industry, the pipe, drilling equipment, and other manufactured goods that it requires, and the large payrolls and their effects on consumer spending, you will begin to get a picture of the enormity of the industry.
And these are good paying jobs. They aren’t eight dollar part-time jobs down at your local big box retailer. These are jobs that comfortably support middle class families. These are precisely the kinds of jobs that we cannot afford to lose.
In recent years, there has been a noticeable economic difference between areas of the country where energy is being produced and where energy is not being produced.
Since December 2007, a total of 1.36 million jobs have been gained in shale oil states.
Meanwhile, a total of 424,000 jobs have been lost in non-shale oil states.
So what happens now that the shale oil boom is turning into a bust?
That is a very good question.
Even more ominous is what an oil price collapse could mean for our financial system.
The last time the price of oil declined by more than 40 dollars in less than six months, there was a financial meltdown on Wall Street and we experienced the deepest recession that we have seen since the days of the Great Depression.
And now many fear that this collapse in the price of oil could trigger another financial panic.
According to Citigroup, the energy sector now accounts for 17 percent of the high yield bond market.
J.P. Morgan says that it is actually 18 percent.
In any event, the reality of the matter is that the health of these “junk bonds” is absolutely critical to our financial system. And according to Deutsche Bank, if these bonds start defaulting it could “trigger a broader high-yield market default cycle”…
Based on recent stress tests of subprime borrowers in the energy sector in the US produced by Deutsche Bank, should the price of US crude fall by a further 20pc to $60 per barrel, it could result in up to a 30pc default rate among B and CCC rated high-yield US borrowers in the industry. West Texas Intermediate crude is currently trading at multi-year lows of around $75 per barrel, down from $107 per barrel in June.
“A shock of that magnitude could be sufficient to trigger a broader high-yield market default cycle, if materialized,” warn Deutsche strategists Oleg Melentyev and Daniel Sorid in their report.
If the price of oil stays at this level or continues to go down, it is inevitable that we will start to see some of these junk bonds go bad.
In fact, one Motley Fool article recently stated that one industry analyst believes that up to 40 percent of all energy junk bonds could eventually go into default…
The junk bonds, or noninvestment-rated bonds, of energy companies are also beginning to see heavy selling as investors start to worry that drillers could one day default on these bonds. Those defaults could get so bad, according to one analyst, that up to 40% of all energy junk bonds go into default over the next few years if oil prices don’t recover.
That would be a total nightmare for Wall Street.
And of course bond defaults would only be part of the equation. As I wrote about the other day, a crash in junk bonds is almost always followed by a significant stock market correction.
In addition, plunging oil prices could end up absolutely destroying the banks that are holding enormous amounts of energy derivatives. This is something that I recently covered in this article and this article.
As you read this, there are five “too big to fail” banks that each have more than 40 trillion dollars in exposure to derivatives. Of course only a small fraction of that total exposure is made up of energy derivatives, but a small fraction of 40 trillion dollars is still a massive amount of money.
These derivatives trades are largely unregulated, and even Forbes admits that they are likely to be at the heart of the coming financial collapse…
No one understands the derivative risk positions of the Too Big To Fail Banks, JP Morgan Chase, Citigroup, Bank of America, Goldman Sachs or Morgan Stanley. There is presently no way to measure the risks involved in the leverage, quantity of collateral, or stability of counter-parties for these major institutions. To me personally they are big black holes capable of potential wrack and ruin. Without access to confidential internal data about these risky derivative positions the regulators cannot react in a timely and measured fashion to block the threat to financial stability, according to a National Bureau of Economic Research study.
Yes, if oil prices start going back up, much of what you just read about can be averted.
Unfortunately, that does not seem likely any time soon. Even though U.S. energy companies are cutting back on capital expenditures, most of them are still actually projecting an increase in production for 2015. Here is one example from Bloomberg…
Continental, the biggest holder of drilling rights in the Bakken, last month said 2015 output will grow between 23 percent and 29 percent even after shelving plans to allocate more money to exploration.
Higher levels of production will just drive the price of oil even lower.
At this point, Morgan Stanley is saying that the price of oil could plummet as low as $43 a barrel next year.
If that happens, it would be absolutely catastrophic to the most important industry in the United States.
In turn, that would be absolutely catastrophic for the economy as a whole.
So don’t let anyone tell you that much lower oil prices are “good” for the economy.
That is just a bunch of nonsense.