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Titan International (TWI): Q4 EPS of $0.37 beats by $0.05. Revenue of $402M (+73% Y/Y) beats by...

Titan International (TWI): Q4 EPS of $0.37 beats by $0.05. Revenue of $402M (+73% Y/Y) beats by $16M. Shares -3.7% AH. (PR)
Comments (3)
  • gafigal
    , contributor
    Comments (17) | Send Message
     
    I just wish I had been able to purchase more shares of TWI when I got in on a hunch @ $22.61.... *sigh*
    23 Feb 2012, 01:11 AM Reply Like
  • bambolino
    , contributor
    Comments (14) | Send Message
     
    Why is the stock down??????
    23 Feb 2012, 02:44 PM Reply Like
  • rubberoptions
    , contributor
    Comments (400) | Send Message
     
    TWI bought off Goodyear's agricultural tire business.

     

    TWI does not hedge primary raw materials costs; namely natural & synthetic rubber

     

    TWI hopes that it can pass off any rise to consumers and make more money on way down

     

    highly unlikely.. NR has gone from $3100 per metric ton in Jan 2012 to $3800 by late Feb 2012.. that is a whopping 22% in just 7 weeks!

     

    market is overbought? think again

     

    Friday Feb 24 2012 session saw natural rubber futures on Shanghai Futures Exchange break through a 12 month DOWN trend line..

     

    natural rubber market is bullish.. auto sales in US is picking up & China is very resilient

     

    one survey mentioned only 5% of China's consumer own auto's; compared to 80% in the US.

     

    to answer Bambolino's question why TWI's stock is still down? it's because natural & synthetic rubber prices will continue to go up and since TWI (ala Winged Foot) does not hedge, then earnings are going to be crimped.

     

    No cost cutting can compensate 22% rise in feedstock prices in 7 weeks!

     

    when the Rubber Meets the Road, TWI & especially Winged Foot stock prices will keep sliding into the road side ditch!

     

    coz unlike Southwest, United, Jetblue, these guys don't hedge
    24 Feb 2012, 05:52 PM Reply Like
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