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Goodyear Tire stock jumps 20% as Elliott takes stake, pushes for board seats (update)

May 11, 2023 12:17 PM ETThe Goodyear Tire & Rubber Company (GT)By: Joshua Fineman, SA News Editor22 Comments
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Update 12:20pm: Adds Goodyear comment.

Goodyear Tire (NASDAQ:GT) soared 20% after activist investor Elliott Investment Management reported a stake and plans to seek five board seats, as well as sale of its company-owned store network.

Elliott said it has an economic

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Comments (22)

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ronald61239 profile picture
I don't expect any more to transpire based on the present offer than what has happened so far.
Somebody who is not in the tire business sends a letter and the stock is up 21%? People will just continue to seek out the lowest price tires they can. This is a short.
Bill_Wallace profile picture
@dwaymer wrong
Good. This thing has been a POS forever
Bill_Wallace profile picture
Elliott, run by Paul Singer, believes, that the Goodyear (GT) could unlock more than $21 a share in value, or a 179% increase in its share price, if it goes forward with the investor's suggestions.

Got my attention! LONG low $14's
Perhaps Elliott will have better luck than Sir James Goldsmith, the stock was at $42 a share back in 1986, seems like Goodyear hasn’t done much since…
FredBerger profile picture
Management is overpaid for below average performance
@FredBerger Almost all are.
@Turkey Trot

I agree. IMO, in the western business world, confidence seems to be often confused with competence...ergo inept, over-compensated management.
matttrakker profile picture
Got my underwater position bailed out. Thank you. Good bye.
@matttrakker same. Took my 14% gain and ran with it. Can’t wait for results to materialize in this market. Sell the news.
Chris Lau profile picture
@matttrakker $GT is Good(bye)year Tire.
Take profits and run. Strong sell.
ronald61239 profile picture
It's about time someone lit a fire under Goodyear management. This sort of thing could not have happened if the Co. was not under valued.
autofocus111 profile picture
@ronald61239 Tire fires are nasty.

>>>Tire fires are events that involve the combustion of large quantities of tires, usually waste tires, typically in locations where they are stored, dumped, or processed. They exist in two forms: as fast-burning events, leading to almost immediate loss of control, and as slow-burning pyrolysis which can continue for over a decade. They are noted for being difficult to extinguish. Such fires produce much smoke, which carries toxic chemicals from the breakdown of synthetic rubber compounds while burning.[1]

ronald61239 profile picture
@autofocus111 ---I get your point. Could be.
team Gabe profile picture
selling calls hand over fist
cr24 profile picture
Maybe they just need to make top quality tires again.
Elliot management/ Paul Singer They will gut the company and walk away with millions while the people that work there will bear the burden of scum like this taking a stake in the company. Just ask the people at Cabelas what happened when the vulture capital company (Elliot management) took a stake in their company. Elliot walked away with millions while thousands of Cabela employees lost their jobs.
@113467 He may not be exactly a knight in shining armor but he is not wrong when he says the stock has performed poorly for a long time.
@value21 suggesting Goodyear sell and lease back their company stores when cap rates are highest they have been in 20? Years is BS. 113467 is right
Singer will F up goodyear, leaving good year on the hook for increased overhead and only walking way with 60% of the cash that was achievable 2 years ago...by the same idea.

Hey.... let's sell the company stores/real estate and lease them back is less than impressive management decision. YOU deserve zero seats on the board with that "brilliant" idea Singer.

btw...what's your second trick to unlocking shareholder value?

They say sell and lease back the stores to then reduce debt with the proceeds. That MO seems to fly in the face of the normal procedures activist investors follow... common seems to be sell and lease back then pay a massive dividend then walk away.
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