CTB

Cooper Tire & Rubber Co.

Industrial/Transportation


Presented:05/28/2014
Price:$28.10
Cap:$1.78B
Current Price:$60.17
Cap:$3.02B

Presented

Date05/28/2014
Price$28.10
Market Cap$1.78B
Ent Value$2.02B
P/E Ratio10.96x
Book Value$14.51
Div Yield1.1%
Shares O/S63.48M
Ave Daily Vol1,140,000
Short Int11.97%

Current

Price$60.17
Market Cap$3.02B
Cooper Tire & Rubber Company, together with its subsidiaries, manufactures and markets replacement tires worldwide. It operates in two segments, North American Tire Operations and International Tire Operations. The North American Tire Operations segment offers passenger car and light truck tires, as well as distributes tires for racing, medium trucks, and motorcycles to independent tire dealers, wholesale distributors, regional and national retail tire chains, and other automotive product retail chains. This segment sells its products through three own retail stores. The International Tire Operations segment manufactures and markets passenger car, light truck, motorcycle, and racing tires and tire retread material. The company was founded in 1913 and is based in Findlay, Ohio.

Publicly traded companies mentioned herein: Bridgestone Corp. (5108 JP), Cooper Tire & Rubber Co. (CTB), The Goodyear Tire & Rubber Company (GT), Cie Generale des Etablissements Michelin (ML FP)

Highlights

Cooper Tire (CTB) manufactures mostly Tier 2 and Tier 3 replacement tires, and has benefitted greatly from its use of LIFO accounting and the drastic decline (~75%) in the price of natural rubber over the past three years. CTB’s manufacturing costs are the highest in the US, and the presenter is short shares because he expects the company’s margins to come under pressure as Chinese competition grows and prices slide.

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Idea Discussion

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