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Thread: U.S. congressional body questions $700 mln loan to YRC Worldwide

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    U.S. congressional body questions $700 mln loan to YRC Worldwide

    The U. S. Congressional Oversight Commission on Monday questioned the Treasury Department's decision to designate trucking company YRC Worldwide Inc as critical to national security and lend it $700 million. The company's shares plunged about 28% during regular trading after the committee also said the move risked the loss of U. S. taxpayer money.


    https://finance.yahoo.com/news/u-con...201406770.html

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    YRC Worldwide Inc.: Shares Still Heavily Discounted Due To Unfounded Bearish Views (Part 1)

    Summary

    Centaur Investments is pleased to share this latest long thesis update and a revised price target of $8 on shares of YRC Worldwide, Inc.

    YRCW's shares remain heavily discounted as investors fixate on everything negative while overlooking 10 years of operational improvement, HNRY Logistics' growth potential, and fair market value of property and equipment.

    Management's multi-year strategy and $400 million in new fleet equipment purchases should lower operating expenses, increase cash flows, and support continuous reinvestment and debt repayment from FY 2022 onward.

    The U. S. Government's 29.6% stake in the business should provide a boost to employee morale across the company, and tacitly incentivize management to concentrate on delivering shareholder returns.

    Lastly, barring Congressional Oversight Committee interference, the low interest $700 million CARES Act loan and term loan covenant amendment clear the runway to achieve sustained profitability.

    While the Congressional Oversight Committee’s ongoing inquiry into the Treasury Department’s justifications for approving YRCW's CARES Act loan may weigh on the company’s stock price in the near term, we are not toning down our previous 'Conviction Buy' opinion on the shares. In addition to the Oversight Committee’s public scrutiny, the company has experienced a series of negative attacks from the media which, in our opinion, are based on ancient history and outright unfounded reasoning.

    Centaur’s analysis of the facts as presented in this article concludes that, contrary to popular belief, the business was on track to achieving sustainable profitability prior to this pandemic-induced economic crisis. Additionally, the company’s past financial challenges were primarily caused by a combination of historically high cost of debt and need for new fleet equipment due to underinvestment, not mismanagement or neglect, as many seem to believe. Lastly, the company’s poor stock price performance may be linked to widely held bearish views which themselves are affected by multiple cognitive biases.

    https://seekingalpha.com/article/436...content=link-0
    Say what...

    the company’s past financial challenges were primarily caused by a combination of historically high cost of debt and need for new fleet equipment due to underinvestment, not mismanagement or neglect, as many seem to believe.
    You got to be kidding me... then who in the hell caused the historically high cost of debt and need for new fleet equipment due to under investment if not upper management... the workers? Who wrote this article anyway... Bill Zollars???

    I can't wait to see Part 2... lol

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