September 23, 2011
The Goodyear Tire & Rubber Company (GT)
Written By Dr. Sam Subramanian
“The Goodyear Tire & Rubber Company (GT) shares are down sharply from their $18.25 a share July high. The tire maker’s fundamentals are on a sound footing and the decline represents a buying opportunity. In the second quarter, Goodyear left analysts’ forecasts in the dust by reporting revenue and EPS surprises of 8% and 141%, respectively. Goodyear targets to save $1 billion in costs by 2012. While rising raw material costs, intense competition and the company’s underfunded pension pose risks for Goodyear shareholders, the shares trade at 7X forward EPS and offer good value for long-term investors. Buy Goodyear Tire & Rubber Company Below: $10.60. Sell Above: $12.85. Stop-Loss: $5.50. Risk Rating: Above Average.”
Sam Subramanian, PhD, AlphaProfit Sector Investors’ Newsletter, September 2011
Oh they’re going down big time, bridgestone is up though
The GT recommendation netted a 24.4% gain for AlphaProfit subscribers in 39 days. Specifically, our subscribers purchased GT at the 9/12/11 close of $10.33 and sold it at $12.85 on 10/21/11. Additional information on AlphaProfit’s stock recommendations are available at http://www.alphaprofit.com/stock-recommendations.html