| StockTradersPress.com |
| A Corporate
Communications Corp. Publication ---- All Rights Reserved |
| Update
Report |
June
22, 2004 |
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| Update / STRONG BUY |
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| GOODYEAR TIRE AND RUBBER CO.
(NYSE) GT |
$9.60 |
| 52-week range |
$4.49-$11.97 |
| Market Cap |
$1.69B |
| Shares Outstanding |
175.34M |
| Book Value |
$-0.075 |
| Price/Book |
N/A |
| Average Daily Vol. |
2.2M |
| Target Price |
$13.00 |
| Target Percentage |
35% |
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| Goodyear Tire is the world’s
largest tire manufacturer. In addition to tires, the company produces
engineered rubber products such as bumpers and specialty chemicals. |
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| Last Friday, Goodyear
Tire reported first quarter operating results, which were
quite good. While the company reported a small loss of $.44 per
share, the loss was occasional by one time special charges totaling
$.45 per share. |
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We continue to recommend Goodyear Tire for
the following reasons: |
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- On an operating basis, the
company showed a profit in each of its 6 major segments. This
is further proof that the restructuring program Goodyear Tire
instituted has been successful and begun to bear fruit.
- Most impressive is that
the gross profit margins have improved dramatically mainly due
to higher volumes and a richer product mix.
- Revenues increased over
100% in the Asian market mainly due to the improving Chinese auto
market.
- A pleasant surprise was
the strong profitability achieved in the company’s chemical
division.
- At its current price of
$9.60 per share, we believe the price does not reflect the improved
operating model of Goodyear Tire and thus we continue to view
the stock as undervalued.
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We
are maintaining our target price of $13.00 per share. |
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