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YRC Worldwide, Inc. (YRCW), National Bank of Greece (ADR) (NBG): Are These Impressive Comeback Stocks A Buy?

In this article I am looking at a unique duo of stocks, those that are trading with mindboggling multi-year losses but have shown recent strength to produce great short-term returns. The goal is to look at each without bias, and determine if there is any value to these recent breakouts.

YRC Worldwide, Inc. (NASDAQ:YRCW)

The Little Engine that Could

After YRC Worldwide, Inc. (NASDAQ:YRCW) posted its Q1 earnings, resulting in its stock doubling, I was very critical and questioned the upside of this company. After taking a closer look, I still have questions, but not as to whether or not upside potential is present but rather if fundamentals improvements are sustainable.

YRC Worldwide, Inc. (NASDAQ:YRCW) has had a good May, returning gains of 150%, but is still lower by 99.66% over the last five years. Therefore, YRC Worldwide, Inc. (NASDAQ:YRCW) was at its lows of lows, and as I assess the company it’s not fair to seek operational perfection without red flags, but rather upside based on a stock that has lost more than 99% of its value.

Here are the facts: The company has improved its operating income by $58.5 million year-over-year during Q1; its bid to buy Arkansas Best would give the company a growing and profitable segment with good synergy; and the stock is VERY cheap! YRC Worldwide, Inc. (NASDAQ:YRCW) has already gone through all the fears surrounding bankruptcy and has appropriately lost the faith of most shareholders. With that said, the same rules apply to a company such as YRC Worldwide as to other companies I like such as Rite Aid; they are so cheap that all it takes is very minor operational improvements to create massive upside.

YRC Worldwide, Inc. (NASDAQ:YRCW) trades with a market cap of $165 million and sales of almost $5 billion, making its price/sales ratio 0.03! This is unprecedented in the market, and in an industry that trades at 1.30 times sales. Because it is so cheap, if YRC Worldwide, Inc. (NASDAQ:YRCW) can continue to improve it could very likely become the best performing stock in the market for a number of years. In my opinion, its upside is worth a very small risk following Q1 earnings.

Taking A Chance on the Recovery of Greece

The call option which is known as National Bank of Greece (ADR) (NYSE:NBG) has seen a mindboggling 260% return since April 9 as a number of bullish plans are implemented for both the entity and the Greek financial system. For one, the National Bank of Greece (ADR) (NYSE:NBG) secured enough private capital in its recap plan, which equated to more than 10% of the financing.