( Updated with YRC volume and price move.)
YRC Worldwide Surges as Bankruptcy Fears Subside
YRC Worldwide was lately up 89 cents, or 20.4%, to $5.24, making it one of the biggest price gainers on the Nasdaq on Wednesday. Volume topped 16.7 million shares at 1 p.m. EDT, more than double the 50-day average daily volume of 8.3 million, according to the Nasdaq's Web site.
If Wednesday's gains hold, YRC shares will have finished higher 13 out of 16 trading sessions in September, reflecting optimism the company will not be forced to file for bankruptcy protection. Earlier this month, YRC Worldwide amended a $950 million credit agreement with lenders as part of its efforts to stave off bankruptcy.Short interest is very high on YRC Worldwide, as it appears traders had banked on the company filing for bankruptcy protection. YRC sported a short interest float of 29.3% as of Aug. 26, according to Yahoo! Finance. YRC has a 58 million-share float. Investor posts on Internet message boards for YRC Worldwide noted the upside momentum, as the stock has surged more than 150% over the last month. Some other traders argued the company should begin considering a secondary offering of common stock.