GT

The Goodyear Tire & Rubber Company

Industrial/Transportation


Presented:06/12/2013
Price:$14.60
Cap:$3.58B
Current Price:$8.28
Cap:$2.36B

Presented

Date06/12/2013
Price$14.60
Market Cap$3.58B
Ent Value$9.05B
P/E Ratio2.95x
Book Value$13.40
Div Yield0.9%
Shares O/S245.53M
Ave Daily Vol4,880,000
Short Int6.76%

Current

Price$8.28
Market Cap$2.36B
The Goodyear Tire & Rubber Company develops, manufactures, distributes, and sells tires and related products and services worldwide. The company offers various lines of rubber tires for automobiles, trucks, buses, aircraft, motorcycles, farm implements, earthmoving and mining equipment, industrial equipment, and various other applications. It sells tires under the Goodyear, Dunlop, Kelly, Debica, Sava, Fulda, and various other Goodyear owned house brands, as well as under the private-label brands. The company is also involved in retreading truck, aviation, and off-the-road tires; manufacturing and selling tread rubber and other tire retreading materials; providing automotive repair services, and miscellaneous other products and services; and manufacturing and selling flaps for truck tires and other tires. In addition, it manufactures and markets chemical and natural rubber products. The company operates approximately 1,300 tire and auto service center outlets, where it offers its products for retail sale and provides automotive repair and other services. The Goodyear Tire & Rubber Company was founded in 1898 and is headquartered in Akron, Ohio.

Please note, this is an update to LONG — Goodyear Tire & Rubber Company (GT), which was originally presented on 8/9/2012. As well, this idea was updated again on 1/15/2014 and can be read here: LONG — Goodyear Tire & Rubber Company (GT).

Highlights

The announcement of Apollo Tyres intent to acquire Cooper Tire & Rubber crossed the news wires just before the presenter began to outline his bullish thesis on GT. He believes GT is in a nearly identical position as Cooper was just one year ago, and based on a $3.50 estimate for EPS in 2014 it is trading at just a 4x multiple. At current levels, he believes GT represents one of the most compelling risk/ reward scenarios in the industrials industry.

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Idea Discussion

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