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Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: tracor who wrote (30972)	3/24/2000 9:37:00 AM
From: IQBAL LATIF	Read Replies (1) \| Respond to of 50167

Thanks RZ.... I will like for long term this one.... Goodyear Recovering from a Bad Year (GT) Last year was not a good year for Goodyear Tire (GT - $23.43). But value investor John Buckingham says plans Goodyear made last year will bear fruit this year and beyond. The world's largest tire manufacturer makes and markets a host of rubber-related products for the transportation industry, and it also runs a line of auto repair shops. 1999 saw too much of Goodyear's output go to OEMs; that left dealers and mass merchant customers short-handed, it pushed down margins, and it weakened the firm's product mix. Troubled emerging economies and unfavorable currency translation also caused problems. As a result, shares of Goodyear fell from a high of $66.75 last May, and Dow Jones dropped the stock from the DJIA. Though operational problems plagued Goodyear in 1999, Buckingham cites a number of strategic developments that make him bullish about the future. For instance, a new alliance with Sumitomo Rubber brings the popular Dunlop tire brand under Goodyear's wing. The firm now has its strongest brand line-up ever; Goodyear leads in the premium market, Dunlop is a strong competitor in the middle tier, and Kelly-Springfield owns a top spot in the low-priced segment. Management predicts this and other strategic developments will result in better operational performance in 2000. Meanwhile, the stock is a bargain, according to Buckingham. "We think the selling of this stock has been overdone, exacerbated by mutual fund selling as a result of the Dow delisting," he says. He recommends buying the stock while it's still cheap, as it trades for less than 8x anticipated 2000 earnings, 29% of sales, 4x cash flow, and spot on its book value. "We would buy GT at prices below $25.50 as our three-to-five year target price is $51," Buckingham says. They also think EDS and INFS are good...