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Concerns of a big hit to U.S. tire prices when tariffs on Chinese imports expire at month's end...

Concerns of a big hit to U.S. tire prices when tariffs on Chinese imports expire at month's end are overblown, Deutsche Bank says, citing talks with dealers and others: "While pricing is likely to deteriorate at the low end of the market, it is not likely to deteriorate to the extent many investors fear." Cooper Tire (CTB +4.4%) recoups some of last week's 15% drop, as DB upgrades shares to Buy.
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  • rubberoptions
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    Deutsche Bank analyst is living in ivory tower & not at corner tire store. Chinese tire manufacturers already capable of making hi performance low low profile 26 inch tires! 2012 Mercedes S class OE tires 225/40ZR18 .. read Roger Lowenstein's book: As America Aged.. what ailed GM also ailed Goodyear Tire & Cooper & yes even Bridgestone's American & US tire plants! the biggest beneficiary of tire tariff expiration? US consumers! Goodyear Tire does not hedge.. for Cooper Tire, it is a double edge sword.. CTB can start exporting their Chinese manufactured tires to the US; but face stiff competition from new Chinese tire manufacturers with lower operating costs & no legacy costs subsidizing USW pension funds... GT CEO Kramer barely passed his college calculus & wouldn't understand Option Pricing Theory
    24 Sep 2012, 05:20 PM Reply Like
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