YRC Worldwide Inc (NASDAQ: YRCW) stock lost some 20% year-to-date and this loss might be erased today. Some of the liberated liquidity flowed into the YRCW shares following the social media chatter. According to the people in the know, YRC Wordlwide is owned by a good buddy of Mr. Trump and there is no way that they will go down, at least that is what they say. Furthermore, their Cash is $3 per share and this is used by some social media accounts as a way to explain how you are missing out on opportunity.
Will is advocating buying a company that has more cash on its balance sheet than it currently trades for. Using $YRCW as an example, the company has $2.80 per share in cash. What is ignored here is liabilities. The company has $19 per share and another $22.80 in debt.— Wike Mickett (@wikemickett) June 11, 2020
On the other side some of the Twitter folks are saying how Cash is not a good indicator because a bankrupt Hertz has $7 Cash per share.
Fun fact: A BANKRUPT Hertz $HTZ has $7.03 per share in cash. You are selling snake oil. Bankruptcy is far more likely than trading at cash, but I’m sure your allegiance of RobinHood traders will buy this garbage along with all the other bankrupt companies. $YRCW— Wike Mickett (@wikemickett) June 11, 2020
And the words was continue. Some are for and someone is against investing in YRCW but thing is for sure. Since the chatter started YRCW stock gained more than 10% and was selling around $2.50 at one moment.
Does debt and logic not matter anymore or do we just invest in this country based on a potential bailout? Sure the company has $100 million in cash but they also have $800 million in debt and another $705 million in current liabilities. This is pump and dump stuff here. $YRCW— Wike Mickett (@wikemickett) June 11, 2020