I admit I invested in goodyear tire stock (GT) as a noob thinking it was a cheap value stock. I didn't look too far back into financial statements. But I finally have, I went back all the way to 1993.
Net sales today, are almost consistently the same as back in the early 90s. Net income as well, for this cyclical business.
How should you value a company like this that has seemingly no growth for decades? Is there even a point at which you are getting a bargain? I understand the concept of buying companies trading below book value, but at what point would an investor even see a return(aside from a meager dividend). Would the company's assets have to be sold off and if so, why wouldn't this have already happened at the hands of an activist investor?
I just can't understand how anyone could profit let alone keep this company afloat with practically zero growth.
Submitted January 31, 2020 at 10:47PM by howdope https://ift.tt/2OgI9oA
