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StockTradersPress.com |
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A Corporate Communications
Corp. Publication ---- All Rights Reserved |
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Short-Term Report |
February 17, 2004 |
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| STRONG BUY |
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| GOODYEAR TIRE AND RUBBER CO. (NYSE) GT |
$ 8.26 |
| 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% |
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| The stock of Goodyear has declined
about $1.50 per share to $8.26 per share. This decline
was precipitated by the Company’s 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. |
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| 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. |
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| Over the past year, the management
has successfully streamlined operations and strengthened its
dealer organization. |
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| 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. |
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| 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. |
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| We are
maintaining our target price of $13.00 per share. |
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