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!

Good Luck,

Ian Decker

Disclosure: No Position

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