Cooper Tire & Rubber Company (NYSE:CTB)
The Company is a manufacturer of replacement tires. It focuses on the manufacture and sale of passenger and light truck replacement tires. It also manufactures radial medium and bias light truck tires and materials and equipment.
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Earning are growing each quarter and extra capacity from China, India and Mexico will soon be available. also recent change of top management.
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nothing but up
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Sales and net profit have been rising quarter over quarter and year over year even despite rising costs of goods. Demand for tires are expected to increase, especially for winter months. If CTB can keep up with that demand and get a handle on rising costs, you'll see the stock rebound fast.
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down $4 to $16
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This is a Schwab A rated stock in an A rated industry. Product is impervious to good times or bad. Sales can only grow with steady mgmt.
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Spected to report 2nd qtr earnings of $0.20 /share.
Cooper posted a profit of $18 million, or 28 cents per share, beating average analysts estimates by 8 cents per share. Sales surged 20 percent to $750.6 million.
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this company will bounce back. Look at the raw material prices and you will see why they have lost money the last 3 years.
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I think it is going up, but only short term, and will drop back down in days.
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Cooper's problems of massive overcapacity, inability to pass along price increases, and excessive domestic labor costs combined with raw material costs that have gone through the roof have made it impossible to make money in the tire industry, particularly for Cooper. Cash is only at slightly >$100 MM and did not drop this quarter simply due to a large reduction in finished goods inventory of tires not made in the 3rd quarter. When this inventory is liquidated, the cash hemorrhaging will begin again because costs of tire production make the company's profit picture upside down. Without closing 1-2 plants, it is only a matter of time till the liquidity runs dry.
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excellent China market portential
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If their purchase of a China operation works the value is there.
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