Quote:
Originally Posted by J_Raad1450 For biotech,
I kind of figure...that's why I asked for inside information lol
Here's my opinion about goodyear Tires (I could be totally wrong): - GT is related to car industry...car industry is going down especially in the US
- GT is related to big ticket items (airplanes, industrial equipment, earthmoving equipment)...there is a slowdown in this category globally
- Rubber (material) is going up in price which in turn eats up profit margin of GT
- A lot of debt on the balance sheet.
- Cash flow from operating activities is going down as far back as 2005 (cedar revolution)....
BTW, everything is good in the long term but which long term? |
For biotech, I don't have any worthy insider information. I personally would invest in biotech penny stocks... For a biotech company to go public, it means that they have a worthy product, if not they wont make it to that stage... There are a few stages that seed companies go through (funding wise) before they go public. So basically to make it to the big stage, they have something worthy (u might know more about it)
As for GT, the car market on the short term is going down, but on the long term, with the growing economies in China and India, the car market is gonna recover (there will be more demand on cars in that part of the world).
As for the price of rubber, the seminar we had dealt with that area specifically (the demand on primary resources will be much higher than the supply in the future) so goodyear are working on a polymer isoprene (if my memory serves me right) which is the waste product from ethanol fermentation. if u link the dots, u get a very good combination... with the rush for alternative fuels such as ethanol fermentation, isoprene can become readily available for cheap providing an interesting alternative... Thats why I feel that this could be good on the long term (dunno how long is long though).... If you are interested i can get u the power point presentation, and we can discuss it further...