Please ensure Javascript is enabled for purposes of website accessibility

The Goodyear Tire & Rubber Company (GT)

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...

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

Dr. Sam Subramanian is the Managing Principal and Chief Investment Officer of AlphaProfit Investments, LLC. He edits and publishes the AlphaProfit Sector Investors’ Newsletter and the AlphaProfit Fund Investors’ Guide. Prior to founding AlphaProfit Investments, Sam worked in positions of increasing responsibility in finance and corporate strategy for McKinsey & Company, Exxon Corporation and Unocal Corporation focusing on acquisitions and divestitures, asset valuation, trading, bankruptcies and risk management. Dr. Subramanian has authored numerous articles for leading financial publications including Forbes, MarketWatch, The Motley Fool and Financial Bridges. He developed the ValuM Investment Process™ for managing investments in 1985. He graduated with honors from the MBA program at the University of Michigan, and has a Doctorate in Chemical Engineering from Syracuse University. He also holds 16 U.S. patents for the pioneering research he conducted at Ford Motor Company.