Does not like company. Would recommend selling. Last quarter good - but overall - not a high quality company. High debt loads with poor business prospects.
It is better now than before but it has lots of debt and negative free cash flow. It has survived over time but has always been somewhat levered and has performed poorly for a long time. Due to the low price it could be time to buy now but you have to be able to handle risk.
Caters to both EV and combustion markets, but car sales have come down. Tough, super-competitive business. Restructuring, which has gone on for a while, so wait for that to finish. Write-offs during restructuring usually help companies.
It's a tough space. We exited this years ago. Buying Cooper Tire 6-8 years ago, but didn't enhance business. The raw material of tires (rubber) is volatile, so this sector is unpredictable. GT is not managed well.
(A Top Pick Apr 27/23, Up 12.1%)Stockchase Research Editor: Michael O'Reilly
Our PAST TOP PICK with GT has triggered its stop at $12. To remain disciplined, we recommend covering the position at this time. This will result in a net investment gain of 9%, when combined with our previous recommendations.
(A Top Pick Apr 27/23, Up 21.4%)Stockchase Research Editor: Michael O'Reilly
Our PAST TOP PICK with GT has achieved its target at $13. To remain disciplined, we recommend covering half the position at this time and trailing up the stop (from $10) to $11.
We reiterate GT as a TOP PICK. Recently reported earnings showed revenues up over 6% beating analyst expectations, with the American region leading the way with 12% growth, showing signs that post-pandemic driving is back on the upswing. It trades under book value and at 15x earnings. We like that cash reserves are growing while debt is aggressively retired and stock is bought back. We recommend maintaining the stop at $10, looking to achieve $13 -- upside potential of 23%. Yield 0%
Shares not performing the last year. Is disappoint with results. Expecting more car sales to increase sales. Electric car demand will require tires manufactures. Will watch company very closely going forward. Higher inflation really biting into business margins.
Shares have fallen, but EV's boom offers GT great promise. EV's require special tires which offer higher margins/profits. GT is invested heavily in these tires. Be patient.
Stockchase Research Editor: Michael O'Reilly As motorists return from the pandemic, this TOP PICK is well positioned as it owns the largest share of the replacement tire market in the US. Its recent acquisition of Cooper Tire will expand its international presence and will immediately be accretive to earnings. It trades at 4x earnings and is under book value presently. We recommend placing a stop loss at $8, looking to achieve $16 -- upside over 40%. Yield 0% (Analysts’ price target is $16.19)
Fabulous Q4. Market didn't like guidance. R&D investments in EV market, as tires need to be different. Those tires have up to 30% higher margins. Bought Cooper Tire. Very strong future. Estimates $2.50 EPS in 2022, $3 EPS in 2023. No dividend. (Analysts’ price target is $22.38)
Very cyclical. Input costs are high. Best in class, but not an attractive industry. Better and steadier cashflow growth elsewhere. He has owned the bonds in the past.
They recently bought Cooper Tire and have pretty much taken over the tire industry. All last four quarters have beaten, and last Friday they delivered a huge earnings beat which sent shares soaring. This keeps going higher.