A Corporate Communications Corp. Publication ---- All Rights Reserved
Short-Term Report
February 17, 2004
52-week range $3.50-$11.97
Market Cap $1.45BM
Shares Outstanding 177.33M
Book Value $2.45
Price/Book 3.56
Average Daily Vol. 2.9M
Target Price $13.00
Target Percentage 57%
The stock of Goodyear has declined about $1.50 per share to $8.26 per share. This decline was precipitated by the Company‚Äôs announcement that it would delay filing its 2003 operating results since the review of its accounting procedures has not been completed. This coupled with the SEC announcing that its informal review of Goodyear has been up graded to a formal review essentially “spooked” the market price of its stock.
While we recognize these actions can be disconcerting to the investment community, we do not believe that they are very serious. Consequently, we continue to recommend Goodyear Tire as an undervalued investment.
Over the past year, the management has successfully streamlined operations and strengthened its dealer organization.
1. Recently, the Chinese Government has issued new regulations regarding extending credit to consumers for automobile purchases. This is an important development since the vast majority of Chinese consumers normally purchase an automobile for 100% cash.
2. The new regulations will open the automobile market significantly for the fastest growing economy. While this development is an obvious positive for the automobile manufacturers, such as GM and Ford, it will also benefit the tire manufacturers such as Goodyear Tire.
We are maintaining our target price of $13.00 per share.



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