RRTS - Sell Roadrunner Transportation Before Elliott Can Take Control
With a massive amount of preferred stock and debt, Roadrunner Transportation (RRTS) should not be appreciated by common stockholders. The company seems to be selling equity and subscription rights to pay debt holders and preferred stockholders. The stock dilution risk on this name seems quite large, which could make the stock price decline. With that, the stock seems to be highly overvalued. It trades at 25x EBITDA with peers trading at 2-9x EBITDA. Finally, the NYSE recently contacted RRTS as the company is not in compliance with certain rules of the exchange. If the stock