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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Wallace Rivers who wrote (9117)	12/5/1999 10:55:00 PM
From: Michael Burry	Respond to of 78576

Wallace, Goodyear popped up in my universe as a contrarian, what with the share price falling off a cliff and it getting booted from the Dow and all. But from a value standpoint, I'm not convinced. It's a leader in the field maybe but it's not a true growth company. It remains priced quite high when I look at the huge maintenance cap ex. This is mature and I don't expect it to grow out of its hole. Looks like the stock quadrupled over two decades early 70's to early 90's. Long-term growth rate around 7% - and that may be coming down. And with Dogs of Dow selling coming at year-end. For a PE 16 stock, I still see a lot of downside. For this multiple, I'd rather be in Ralph Lauren. And the yield to me seems 1)not protected and 2)decent at nearly 4% but practically something to sneeze at given the yields that can be found on equities in this market. Good investing, Mike