Canaccord Genuity Morning Coffee on Goodyear Tire (GT): Shares Going Up Like the Blimp
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Price: $14.74 +6.97%
Rating Summary:
4 Buy, 2 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Rating Summary:
4 Buy, 2 Hold, 2 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 11 | Down: 35 | New: 23
Trade GT Now!
Canaccord Genuity Morning Coffee on Goodyear Tire (NYSE: GT): Shares going up like the blimp.
Shares of Goodyear Tire and Rubber jumped (over 5% yesterday, and 1% higher this morning) as the global rubber surplus reached a whopping 402,000 tonnes. The surplus compares to a 134,000-tonne deficit just six months ago. The quarter’s 23% decline is the worst since the global financial crisis in 2008 and exceeds a 16% retreat in commodities. Along with declining demand, growing supply from countries such as Thailand, Ivory Coast and Indonesia also added to the over-supplied conditions. Farmers may extract a record 11.4 million tonnes this year, exceeding demand of 11.1 million tonnes, according to a commodities trader. Sales of trucks in China fell 6.1% in the first five months as passenger vehicles grew 5.5%, China Association of Automobile Manufacturers data show. A tire for a medium to heavy commercial vehicle uses as much as 18 kilograms of natural rubber on average, compared with less than 1 kilogram for a passenger car. China accounts for 33% of global demand and tires represent 70% of natural rubber consumption in the country.
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Shares of Goodyear Tire and Rubber jumped (over 5% yesterday, and 1% higher this morning) as the global rubber surplus reached a whopping 402,000 tonnes. The surplus compares to a 134,000-tonne deficit just six months ago. The quarter’s 23% decline is the worst since the global financial crisis in 2008 and exceeds a 16% retreat in commodities. Along with declining demand, growing supply from countries such as Thailand, Ivory Coast and Indonesia also added to the over-supplied conditions. Farmers may extract a record 11.4 million tonnes this year, exceeding demand of 11.1 million tonnes, according to a commodities trader. Sales of trucks in China fell 6.1% in the first five months as passenger vehicles grew 5.5%, China Association of Automobile Manufacturers data show. A tire for a medium to heavy commercial vehicle uses as much as 18 kilograms of natural rubber on average, compared with less than 1 kilogram for a passenger car. China accounts for 33% of global demand and tires represent 70% of natural rubber consumption in the country.
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