Monday, August 2, 2010

First Move Monday- Buy Goodyear

On Thursday, Goodyear (GT) reported great earnings.  Goodyear reported net income of $28 million, or 11 cents per share, for the second quarter, compared with a net loss of $221 million, or 92 cents per share, a year earlier. Revenue rose 15 percent to $4.5 billion.  Yet, shares of GT sold off sharply on Thursday and Friday.  Why- because investors are worried that an economic slowdown could hurt earnings in the second half of the year.  Really?  GT does a lot of business in Europe.  These second quarter earnings include the time when everyone was worried that a bunch of countries in Europe, ie Spain, Greece, etc, would need to be bailed out.  Its not like the economy in the US has turned around much either in the past quarter, and yet, investors sell this stock into great earnings.  I think you buy some on Monday and sit on it for a year.  GT is going to have much better numbers over the next year than analysts expect.

Goodyear (GT) 10.67  52wk 9.65-18.84

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