Seeking Alpha

Anthony Alfidi's  Instablog

Anthony Alfidi
Send Message
Anthony J. Alfidi is the founder and CEO of Alfidi Capital, a research firm in San Francisco, California. Alfidi Capital publishes free financial research with honesty and humor. Mr. Alfidi holds a Bachelor's degree in human resource management from the University of Notre Dame (cum laude) and... More
My company:
Alfidi Capital
My blog:
Alfidi Capital Blog
  • YRCW Headed For Delisting Decision 0 comments
    Sep 9, 2010 12:26 AM | about stocks: YRCW
    Here comes another non-surprise in the continuing FAIL that is YRCW.  The NASDAQ has officially notified YRC Worldwide that its stock is about to be delisted from the exchange for its failure to consistently maintain a bid price over a buck.  The company's management is of course doing the right thing for its shareholders by appealing this notice.  Since the appeal is scheduled for Oct. 7, the final delisting decision will come about a month later.  I'm pretty sure I know how that's going to turn out.  The company's last 10-Q was published on Aug. 9, so its next quarterly report will be due just about the time the appeals panel will be formulating its delisting decision in early November.  YRCW will need to show a massive upward earnings surprise in that report for its share price to make any meaningful recovery.

    What are the chances of such a surprise?  Slim to none, but Slim hasn't left town just yet.  Steadily falling fuel costs can give truckers like YRCW some healthy tailwind.  Executing a long-rumored reverse stock split would be the Hail Mary pass that buys YRCW a little time, perhaps another quarter at best, but management will have to pull the trigger right about now for the split to take effect by the time the NASDAQ panel meets.

    Watching YRCW continue its slow march to dissolution is about as painful as watching one of its big rigs jackknife on the highway.  If you don't own its stock, just be glad you're not along for the ride. 

    Disclosure: No positions
    Themes: trucking Stocks: YRCW
Back To Anthony Alfidi's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

  • $GALT Galectin Therapeutics just keeps losing money: http://goo.gl/Vzl0HX
    Mar 19, 2015
  • $IBB Health care and biotech sectors await correction. Low interest rates and ACA subsidies won't last forever. http://goo.gl/2mQ5K4
    Mar 11, 2015
  • $OIL $USO WTI oil price is still twice its 1986 bottom, with nothing to prevent further decline: http://goo.gl/EZpKcV
    Feb 26, 2015
More »

Latest Comments


Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.