YRC Worldwide Inc  (YRCW)     Rate YRCW  -  Discuss YRCW  -  Add to Watch List        

Stocks discussed in the lightning round session of Jim Cramer’s Mad Money TV program, Wednesday June 18. <!----> <!---->

Bullish calls:

Black & Decker (BDK): "I pulled the trigger today and bought some more for my trust. It's cheap and has a 3% yield, so I said it's time to buy. I am willing to take the consequences. The housing crisis will eventually be over."

Praxair (PX): "The gas business is on fire. These are stocks we've been recommending for multiple years. I reiterate my buys on Airgas (ARG), Air Products and Chemicals (APD) and Praxair."

YRC Worldwide (YRCW): "I think it's fin

YRC Worldwide (YRCW) is one of the largest trucking companies in the U.S. and the company has suffered along with the U.S. economy through a tough first quarter. <!--more--> YRCW stock has plunged for more than a year, today trading at levels 70% lower than a year ago. However, after releasing earnings and an optimistic forecast, the stock is up a whopping 30% at the time of writing. Trucking is often viewed as a leading indicator of economic activity, so the guidance offered by the company’s CEO is a hopeful one.

Con-Way (CNW) released earnings on Wednesday night which fell short of consensus estimates and reduced guidance for the full year.<!--more--> The Company cited what everybody in the trucking industry has been feeling: a combination of a soft freight environment coupled with weakening prices. From all indications, the second half rebound that gurus on Wall Street were expecting seems to be dead and expectations seem to be coming in, with a 2009 recovery the new mantra amongst the crowds.

All this brings me to a very interesting short idea. YRC Worldwide (YRCW) is the largest LTL carrier in

For those who don’t know, Yellow Roadway Coorporation is the largest less-than-truckload (LTL) transporter in the US. Basically they transport another company’s goods from point A to point B using their drivers and fleet. With $10 billion dollars in annual sales, YRC has the economy of scale to purchase fuel and trucks at a cheaper prices than competitors. As you can imagine, the trucking industry is extremely cyclical, demand for trucks picks up when the economy, both US and abroad, is strong and slows down in weak economies.

Investors in LTL companies are primarily investing in them for t