Most of us work in one industry or another and do not really know what is going on in other sectors of the economy. All industries abide by the rule to stay in business need revenues to exceed expenses. It is relatively simple until you add debt into the equation, if debt is too high it is very difficult to get revenues exceeding expenses. If you have gone on a highway drive, among the many trucks on the road were yellow ones which allowed people to see them.

In an article by Wyatte Grantham-Phillips of the Associated Press, in mid August the trucking company Yellow Corp declared bankruptcy or Chapter 11 after years of financial struggles and growing debt. In August the Nashville based company had 30,000 employees across the US as well as debt of over $1.5 billion.

3 years ago, the company received $700 million in pandemic-era loans which means the government is one of the many creditors. The loan was given on the basis of national security.

Bruce Chan, research director at Stifel, said the financial chaos at Yellow is likely 2 decades in the making pointing to poor management and strategic decisions dating back to the early 2000’s.

22,000 of the workers were unionized under Teamsters and general President Sean O’Brien called the news unfortunate but not surprising.

Linking to dividend paying stocks, as an investor you do not want to hear the words it was not surprising negative results happened. If the results are surprisingly good that is different. Part of the reason not to hear not surprising is doing your homework. If you are investing in an industry that you know only know a little about, you need to read reports or watch videos on the industry or talk to people in the industry and find out why it is a good investment. If you are thinking about the long term when making a decision this will allow you use to patience. A good company will still be there in another quarter.

There are more questions than answers, till the next time – to raising questions.