GT

Goodyear Tire & Rubber Co

Industrial/Transportation


Presented:09/26/2013
Price:$22.98
Cap:$5.65B
Current Price:$8.28
Cap:$2.36B

Presented

Date09/26/2013
Price$22.98
Market Cap$5.65B
Ent Value$10.88B
P/E Ratio2.98x
Book Value$13.40
Div Yield0.9%
Shares O/S245.98M
Ave Daily Vol4,230,000
Short Int6.01%

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.

Highlights

Despite an “epic run” since March, the presenter remains long shares of GT and sees upside to $33 per-share. He continues to like the idea for a variety of reasons, including GT’s valuation relative to its exposure to strength in the US automotive market and the cyclical rebound in Europe. GT’s management team is well-respected, and they know the company’s operations inside and out because they came up through the ranks following the financial crisis in the US. His views on capacity, plant utilization, and overall operations support his bullish stance.

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Idea Discussion

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