Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev | Next
Author: caveman2 Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1162  
Subject: letter to gibara Date: 1/26/2000 3:39 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 10
i have enjoyed the recent exchanges on gt's board and have found them to be quite educational in crystalizing why gt is in such poor shape, and why we may not expect much else anytime soon. i particularly have enjoyed cejhal's and rebekah111's well constructed opinions on the state of affairs.

i also agree that, in the face of such poor performance, there has been a sense of apathy rather than outrage.

now, i know that people tend to follow the laws of inertia, and that action takes effort. i also know that the f4 (the primary reason why many of us are in gt in the first place) is essentially an inertial mechanical plan - make the calculations, put the money in, and coast for 366 days.

i discussed writing a letter to gt about 6 weeks back. what can i say? inertia got me. but cejhal's and rebekah111's recent notes, plus a slow day at the hospital, has me resolved to get off my tuckus and do something.

i am therefore writing a letter to samir gibara. the text of the letter appears below. i have tried to encorporate many of the excellent points made regarding gt's [lack of] performance. i would be happy to recieve suggestions and/or corrections from you fools prior to sending it out.

you folks may want to use it as a template for your letters to gt's ceo. you may want to copy it and use it as a form letter. you may not. however, it is food for thought, and may break up some of this aquiescence, this vissiscitude, and other lazy french words, that we shareholders are experiencing. (not to mention angst, which is a good solid german word).

if you do want to use this as a form letter, i would NOT use the fool's name. this isn't their endorsement, nor is it their issue. you might e-mail this post to yourself so you can cut and paste and customize and print easier. or you may want to delete it. whatever.

please note that i can capitalize when i see fit!
_______________________________________________________

Samir Gibara
Chairman, President, and CEO
Goodyear Tire
1144 East Market Street
Akron, OH 44316


1/26/00

Dear Mr. Gibara,

As a private investor and shareholder in Goodyear Tire, I have become increasing alarmed at the performance of your company's stock as of late. As you are no doubt aware, GT has dropped from a high of $66.75/share to a recent low of $24.50/share. In nearing a 66% drop share price, GT is now trading at near-book value. As a company that generates over $12 billion in sales, GT's market worth is approaching a mere $4 billion. Sales have dropped 1% in an era of unprecedented financial growth and consumer confidence. Although car sales are at an all time high, net income has plummeted 66%.

I realize that some of this devaluation comes in the wake of aquisitions of competing tire manufacturers. However, it is not clear to me how well these comanies have been integrated into GT, given your recent fiscal results.

In discussing this situation with several of my fellow investors, several unpleasant rumors have appeared. It is unclear as to how well GT is managing its inventory. It is unclear as to how dim the upcoming quarterly report slated for February will be. It is unclear that, based on recent dealer meetings, that GT has a clear vision for the future. It is unclear that GT has an adequate plan for integrating its aquisitions. Finally, it is unclear how GT plans to recapture its value in today's demanding market.

Several of my fellow investors fear that this situation will only improve if GT is either bought out, or if there is a major corporate restructuring.

So I respectfully ask you, Mr. Gibara, what are your plans for turning this company around? I and many other investors, both large and small, private and professional, are patiently waiting for an answer.

Thank you for your time.

Respectfully yours,

_______________________________________________________

well, that's it. please feel free to correct any incorrect factoids, grammar, style, etc. also, please feel free to copy it and use it for yourself, either as is or in a seriously edited format.

power to the people! we have nothing to lose but our chains! or something more blatantly capitalistic.

fred
"caveman2"


_______________________________________________________
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (10) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Berkshire Hathaway

IBM: Is Buffett Wrong, or Brilliant?
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement