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Best of the Best: Today's Top Investment Ideas
Goodyear (GT): Ready to roll? Print E-mail Digg It!
Wednesday, 07 May 2008

 "Short-term, this market is prepared to go much higher," says Charles Payne. In his Wall Street Strategies, he explains why he feels Goodyear Tire (NYSE: GT) is set to roll ahead. 

"At this stage of the game it's time to give up internal anxiety and put your fears in check. If you're still waiting on optimal conditions such as a sign that the coast is clear in housing or cheaper crude oil prices you could miss an incredible chance to make money.

"I understand how difficult it's to reconcile surging crude oil, sinking home prices, shut vaults at banks, and a slower economy. I know it's hard to push these issues off to the side of your mind and believe the market could move higher.

"Yet, here we are in the midst of a three-week rally that could extend to four-weeks. Huge money making opportunities have already been missed. The thing about the stock market is that it's not always rational.

"Among individual stock, I like the way Goodyear Tire is acting. The stock has been struggling since missing earnings last summer, this after the shares rocketed to $36.00 from $10.00 in about one year.

"We think that the stock has the potential to make a similar move from its current levels. The stock is basing and needs to get through $30 on better than average volume. Once that occurs we are looking for move back to $36.00. Nervous investors should consider a stop-loss at $26.50."




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