Wow! What a tank on YRC Worldwide Inc. (NASDAQ: YRCW), it is currently at $.08 and lower! It has just fallen almost 74% on the day and could be ready for a HUGE bounce soon.
YRCW held a special meeting of stockholders today and it appears that the vote to dilute went through. I hope you were able to read my article on September 12 when I told you about this possible dilution as it was trading at $.48!
Nearly 4,999,999 preferred shares were issued to holders of the company’s debt and to the IBT Employee Stock Trust. These shares will convert into 1,910,131,449 common shares once shareholder approval for the Charter Amendment Merger is received. In Addition to that, $240 million face value of convertible notes was issued, and these notes convert into common stock at prices below $0.12!
The Bottom Line
Unless YRCW decides to file for bankruptcy, YRCW could bounce well off its low today and after that – well, it could possibly move a little lower. So make sure to take profits when possible! This is a massive panic started by HEAVY dilution and it should have a MASSIVE bounce!
Disclosure: No Position
InvestorSoup.com is committed to provide intelligent commentary and solid analysis of small cap stocks, micro-cap stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily on the underserved OTC stocks market, or “penny stock” market, which has traditionally been shunned by Wall Street. There are many hot penny stock opportunitiespresent 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.
DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND ON THIS REPORT. We are not registered as a securities broker-dealer or an investment adviser either with the U.S. Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide investment advice. Neither InvestorSoup.com nor its affiliates have a beneficial interest in the mentioned company; nor have they received compensation of any kind for any of the companies listed in this communication. The information contained in our report is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge exclusively to individuals who wish to receive them.