SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Jurgis Bekepuris who wrote (46808)3/1/2012 12:52:35 AM
From: Spekulatius  Read Replies (1) of 78594
 
re Ml.PA, MGDDY - well tires are a tough business. What attracted me to Michelin was the observation that the tire companies have more pricing power than they used to. Evidence was their ability to increase the price of their products with the rising input cost - traditionally they had trouble to do so.
In addition, we have a secular growth in emerging markets that are beneficial to tire companies and as far as Michelin is concerned, a much better balance sheet than they used to have. The low valuation is an other incentive, maybe the main incentive.

I feel that the stock market is not given the tire companies and in particular Michelin enough credit for the most better outlook. of course I could be wrong and we could see the same old story: Overcapacity, low growth and price wars. So far, I am not seeing that.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News