Recent pessimism seems overblown, but we aren't constructive.Wachovia analyst says, "We are upgrading shares of YRCW to Market Perform, from Underperform, as we no longer see the risk-reward equation on the short as compelling at current depressed levels.
We currently expect the International Brotherhood of Teamsters rank and file to ratify the wage reduction amendment this week. The ballots are to be collected at 10AM this morning for the official vote.
Moreover, management expects to amend its credit agreement with its lenders. Accordingly, we see limited downside risk assuming these potentially positive events come to fruition, materially reducing uncertainty about YRCW's near-term liquidity."
YRC Worldwide Inc. is a holding company that through wholly owned operating subsidiaries offers its customers a range of transportation services.
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