JB Hunt is growing. JB Hunt has a defendable market position. JB Hunt makes tons of profit.
After the new shares issued and debt for equity deals, they doubled their shares outstanding, and the stock still went up.
Reduced interest expense will help a bit. But, still. Pretty impressive for an old, mature company that has lost half its revenue, hasn't invested in cap-ex and hasn't turned a profit in years to see this rich valuation.
Why do you expect a good earnings report? They haven't reported a profit in years. The fourth quarter is always seasonally more difficult. They were asking for concessions during the quarter, crying about how they need them because of how poorly they are doing. There was some bad weather. The labor issues likely affected shipper decisions.
So, which of these factors causes you to expect a good earnings report?
Remember, just because it is overvalued doesn't mean it won't stay overvalued. Big losses and big dilution coming. Everybody knows that. Yet, the stock price stays elevated. This stock rarely trades on anything other than emotion and momentum.
They asked for big concessions from employees and you are speculating that earnings might be good??? Despite horrible results (and no "earnings") in recent memory?
The workers are still technically earning their pension. The problem is that these multi-employer plans are severely underfunded, and with only 25% contributions by the biggest participant YRC, it appears inevitable they run out of money at some point. Keep in mind that many if not most pensioners in these plans worked for old union companies that went out of business and of course now pay in nothing to offset what is taken out by their former employees.
It's really clear and documented. Losses every quarter in recent years.. Who doesn't have the right info?
What a maroon. They haven't had a profitable quarter in years, and the fourth quarter is always a seasonally weak quarter, to boot. Plus, you had YRCW management trumpeting how bad things are that they needed immediate concessions from their workers. But, you go ahead and expect profits. Hoo boy.
Naysayers have facts on their side. Defending YRCW with platitudes like, "this company is a middle class hard working..." - that weak stuff is meaningless, from an economic, stock-oriented, financial standpoint. That's no basis for believing in future success. The fact is they haven't make any profit for years and have only been barely ebitda positive because they quit spending money on new equipment several years ago. Now, they have ancient equipment, no profits, risk to losing more business, and big looming debt maturities. Facts, not bs flag-waving.
Nobody will buy this company. No way, no how. The lenders will refinance the debt, but nobody is putting in any new money.
Assuming this proposal got voted down, I believe that management will be back with a new proposal in less than a week. This time they'll simply propose an extension of the current deal, rather than pushing for more concessions. imho, that would pass.
Dec 16, Kansas City Business Journal. With the clock ticking on YRC Worldwide Inc.’s $1.4 billion in debt, rank-and-file membership of the International Brotherhood of Teamsters is not warming up to a new agreement the company said is vital to ensuring the company's survival.
The union is considering the terms of a new labor deal. Ballots have been mailed out and are due to be counted in early January. CEO James Welch has said he’s confident the union will ratify the proposal.
On Monday, Vic Terranella, president of Kansas City’s Teamsters Local 41, said a majority of union members he has spoken with do not support the proposed agreement and are going to vote against it.
Terranella held meetings during the weekend and continues to speak with YRC Teamsters in Kansas City. He said he does not support the new agreement, either.
Bruce Frakes, an over-the-road driver based in Kansas City and a former union steward, said he’s traveled to the Overland Park-based carrier’s (Nasdaq: YRCW) terminals throughout the Midwest and heard the same things from Teamsters elsewhere.
“It’s my opinion that a majority of the rank-and-file workers — drivers, dockworkers and clerical — are not in support,” he said.
Frakes, who helped represent the union during previous concessions, said an overwhelming majority of the Teamsters he’s spoken with oppose the proposed changes. He said they are not willing to go back any further than they already have. Frakes also said he does not think YRC will fail if the proposal is not ratified.