Topic: How To Invest

Power Growth Investor Hotline – Friday, May 19, 2023

Article Excerpt

GOODYEAR TIRE & RUBBER CO., $14.02, is still a buy. The stock’s investors (symbol GT on Nasdaq) have bought into one of the world’s largest tiremakers, with 57 plants in 23 countries. In June 2021, Goodyear acquired Cooper Tire & Rubber Co (symbol CTB on New York) for $2.8 billion. The deal combined the two biggest tire manufacturers based in the U.S. Goodyear’s shares took a big jump late last week after activist investor Elliott Management pushed for changes at the tiremaker. Elliott cited poor profit performance versus its rivals. It also pointed to what it sees as weak board oversight of management and badly timed tire distributions deals. Elliott wants Goodyear to add five new board members. As well, Elliott, which owns about 10% of Goodyear, is pushing for a sale or other action on the company’s 1,000 plus retail stores. Goodyear’s revenue in the three months ended March 31, 2023, rose 0.7%, to $4.94 billion from $4.91 billion a year earlier. The…