The Goodyear Tire & Rubber Company (GT)
A manufacturer of tires and rubber products. The Company also manufactures and markets several lines of power transmission belts, hoses and other rubber products and rubber-related chemicals for various applications.
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Doing well even in this environment. Has reduced costs, new products. As people eek out the last mile from their old tires, replacements are more profitable than OEM's anyhow. This drop is a buying opportunity IMHO.
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Cost savings, cheaper raw materials and a pick-up in demand should equate to a good 12 months of earnings, maybe even $3. If they can even do close to that and if they trade on only 8-10x then still significant upside from here.
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People need tires, and our winter is about to start.
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big problems with union contracts just like gm and chrysler and we all know what happened to them !!!!!!!!!!!!!!!!
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Shareholder equity has steadily been evaporating. Audit Integrity rates the company a greater risk of filing bankruptcy than 87% of other companies. The automobile market remains under huge strains,consumers cannot get loans. Stock Is way overpriced. TS
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every product you tyouch was delived by a truck......a truck needs tires, rubber.
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a good tire company
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up 40% in 3 months, overdone
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#19 Worst Toxic Polluter (http://www.peri.umass.edu/toxic100_index/)
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They are not financially healthy by my standards.
Based on my experience trying to purchase used tires, a very large number of people are buying used instead of new. I have never seen used tire shops so busy or their inventory so low.
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Not sure what to think about this because there has been very little profit taking. After seeing all of the DUI checkpoints/speed traps this weekend, Im coming to the conclusion that people wont be driving as much in fear of being harrassed by local police and gas prices. I like the tires though.
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High debt and low cash flow currently = bad combo for outperformance
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GT will be @ $20 by end of year IMO> CTB not far behind that as well. No one is really in position now to buy new cars so they are going to need to replace those old tires.
GT has made adjustments, but CTB has cut a lot of costs. They shut the lack luster producing plant in Albany as well as all plants negotiated Union contracts,so cut costs down considerably to save when they were all faced with one of the plants closing this year.
These are gold mines! Got in on CTB @ $5.35.
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The book says this is a gonner over time. the Market says it should go UP when it is still losing money??? Where's the logic in all of this?
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buy into tires now for the future
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Keep rolling on!
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Car owners will always need to replace tires.Good earnings ahead.
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4x trouble
1. Euro denominated profits
2. pension plan
3. debt burden
4. demand destruction in auto industry
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Debt debt debt.

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