Topic: How To Invest

Power Growth Investor Hotline – Friday, November 17, 2023

Article Excerpt

GOODYEAR TIRE & RUBBER CO., $14.18, 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. Goodyear’s shares took a big jump in mid-May 2023 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. Plus, Elliott wanted Goodyear to add five new board members. As well, Elliott, which owns about 10% of Goodyear, was pushing for a sale or other action on the company’s 1,000 plus retail stores. In late July, Goodyear said that it will add three directors in agreement with Elliott Management. Three experienced business leaders, mutually agreed-upon between Goodyear and Elliott, then joined the board. Further, as part of its agreement with Elliott, the board also established a Strategic and Operational Review Committee. This group is now…