YRC Worldwide Inc. (NASDAQ: YRCW) earlier this week announced it is facing possibility of Nasdaq de-listing after the company failed to raise its share price by more than $1 by the August 31 deadline.
The Kansas-based trucking company said it will make its appeal regarding Nasdaq’s decision to a hearing panel on October 7 – the panel could take as much as 45 days to announced its decision.
YRCW skirted bankruptcy in December as business waned under the weight of the recession. Shares of YRCW have traded below $1 since January.
The company provides a range of transportation services, through its subsidiaries. The company provides global, national and regional transportation services. The company’s subsidiaries include YRC National Transportation, which focuses on the national and international markets and YRC Regional Transportation, which focuses on the regional markets.
Last month, YRCW announced that it completed an initial closing on the sale of a portion of its subsidiary, YRC Logistics, to Austin Ventures. The sale was announced in June this year. The company received $33.6 million at the initial closing of the deal. As per the agreement between YRCW and Austin Ventures, YRCW will continue to provide its customers complementary logistics solutions through its strategic relationship with Austin Ventures. The company retained its two China-based joint ventures.
YRCW reported second-quarter net loss of $9.5 million, compared with a net loss of $309 million reported for the same period in 2009. The company reported an 18.6% year-over-year decline in tons per day and shipments per day at its YRC National Transportation division and a 4.6% year-over-year increase in tons per day and 3.1% year-over-year decline in shipments per day at its YRC regional Transportation.
The company reported a 3.9% year-over-year increase in revenue per hunderedweight and revenue per shipment at its YRC National Transportation division and a 2.8% year-over-year decline in revenue per hundereweight and a 4.9% year-over-year increase in revenue per shipment at its YRC Regional Transportation division.
For full year 2010, the company expects gross capital expenditures to come in between $30 million and $50 million.
Since announcing the second-quarter financial results, the penny stock of YRCW have tumbled 12.05%. Prior to the announcement of second-quarter financial results, the penny stock saw a huge rally, climbing more than100% over a one-month period. However, year-to-date, the stock is down 65.58%, underperforming the transportation sector, which is down 0.07% and the S&P 500, which is up 0.56%.
The penny stock has a 52-week range of $0.10-$6.18. It is currently trading above its 50-day and below its 200-day moving average. The stock has a support level at $0.27 and a resistance level at $0.31. Analysts, currently, have a consensus recommendation of Underperform on YRC Worldwide Inc.
■Want more? Check out the message board buzz for YRCW
■See what newsletters are recommending these stock picks
■Get breaking news alerts on this stock: thestockmarketwatch.com/
Tagged as: YRCW
About BeaconEquity.com
BeaconEquity.com is committed to producing the highest-quality insight and analysis of small cap stocks, emerging technology stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks in the stock market today, which has traditionally been shunned by Wall Street. We have particular expertise with renewable energy stocks, biotech stocks, oil stocks, green energy stocks and internet stocks. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.
Beacon Equity Group Disclaimer
This newsletter is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Beaconequity.com is a wholly-owned subsidiary of BlueWave Advisors.
While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.
Gruss Albay