Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: cejhals Two stars, 250 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1162  
Subject: News from the Tire Industry. Date: 5/5/2000 5:18 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 17
During this past week the following news have been announced from some of the largest companies in the Tire Industry:

Michelin announced this week according to the Financial Times, that it had decided to restructure production at its 4 French plants in order to increase efficiency and reduce costs. Part of the consequence will be a further reduction in the number of employees in France of between 6% and 7%.

This is fully consistent with Michelin's previously announced plans to further improve its operating margins to at least 10% - which we know is far in excess of what GT is achieving!

Cooper Tire and Rubber (CTB) announced in connection with its Annual Meeting that its Board had authorised an additional repurchase of its shares. This authorisation covers 10 million shares or approximately 13% of the company's outstanding shares.

When I earlier this year received a response from GT to one of my letters to Mr. Gibara. The company used as an excuse for it's shares poor porformance, that also CTB's and Michelin's shares had performed poorly.
Based on today's closing prices the situation of the three companies shares are as follows:

GT: Closed on May 5 at $27.375, down 60% from its 52 week high. Up 34% from its 52 week low.

CTB: Closed on May 5 at $13.625, down 45% from its 52 week high. Up 44% from its 52 week low.

Michelin: Closed on May 5 at EUR37.90, down 23% from its 52 week low. Up 22% from its 52 week low.

If GT's share price should be at the same relative price from its 52 week high it would trade as follows:

- relative to CTB (45% down from high): $37/share - up 35% from GT's close May 5th!

- relative to Michelin (23% down from high): $51/share - up 50% from GT's close May 5th!

I trust all GT shareholders will agree with me, that we could all feel better about our GT investment if GT's management had been able to deliver results for its shareholders as CTB and Michelin has done.

I also trust we all can agree that GT's management owe it's shareholders an explanation about why, the financial performance of GT - which has led to the poor performance of the share price - has been so inferior to that of its competitors.

Finally, GT's management owe it to its shareholders to specify precisely what it is doing to lift GT's financial performance up to a level compatible with that of its competitors.

These are modest demands from shareholders, as GT - being the market leader at the moment - clearly should be delivering superior financial results relative to its competitors.

I have sent this post by e-mail to Mr. Gibara for his comments.

Anyone reading these pages and wanting to reinforce the message to GT and Mr. Gibara should consider recommending it.

Take care.

cejhals.
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | 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:
Value Hounds

Considerable Headwinds for Profire Energy?
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