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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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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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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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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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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It's obvious. Everyone needs tires even if they buy used cars, busses airplanes, etc. Legacy costs seem to be a moot point because no dividend is paid. Good price for long term.
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Big name, good tires, beaten down too low.
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oil DOWN goodyear UP!!!
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goodyear is a solid company that sells really high end tires. The price of crude oil determines they're raw materials costs. With crude down profits should go up!!
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Sure, automobile production and sales are in the toilet. But last time I checked Goodyear manufactures tires for pretty much every industry from the airlines to NASCAR which will continue to purchase tires depite the economy. Why? Tires don't last forever. And with the business model they have in place, coupled with the upper management and economic need for their product, GT should rebound well before its automotive counterparts.
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Oversold people still need tires, belts, and hoses.
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Oversold just like ASH
This company provides auto parts that wear out and must be replaced regardless if you have money or not.
ASH does the same with Oil changes.
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The biggest problem GY faced was the retirement commitments they have. Secondly steel and oil are down which will equate to substancially higher earnings. The problems with the big 3 won't take this company down. Sales in all the other markets that GY has a strong hold will make this stock perform.
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Goodyear is undervalued trading well under book value. All things related to automobiles has become cyclical. This fear should be used to the value investors advantage. First of all GT sells replacement and OEM tires for all size vehicles (small, mid, large, over-size, heavy etc...) Goodyear is not only tied to OEM markert! People will drive and tires need to be replaced. GT - creates a quaility product and durable good. Although they have been hampered with long-term debt to cost/work agreements they have done an excellent job reducing debt. Q2 of '08 was a record quater! Goodyear will outperform.

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