Ouch. Goodyear Tire and Rubber was down almost 20% today. What's strange is they reported increased earnings for the third quarter. The earnings were more than double that of 3Q last year. What the heck is going on?There are a couple reasons that the share price did not rocket up. One is that analysts thought the company would earn even more this quarter. Damn the analysts. The company also achieved the profits due to cost cutting (laying off employees). Sales were actually down quarter over quarter.
Finally the company actually said that sales would be weak next quarter, especially in the USA. Well the bad news is out. I think Goodyear is well worth looking into. In fact, I am going to bet on it. We might be able to pop back up 20% or more before the 4Q is over.
