As part of Activist Strategy, we send out a weekly precog feature looking for stocks that could see an activist intervention. This week’s installment (sent to subs yesterday) includes Goodyear Tire ($GT), which has Marcato Capital owning nearly 4% of the company, making up over 10% of its portfolio.
There’s also another activist (with a focus on industrials) owning a position as well, recently upping its stake.
Founded in 1898 and based in Akron, Ohio, the company is ripe for a shakeup. Yet, it’s a classically cheap company, but there are a few activist levers to be pulled. One of which - Marcato is no stranger to leveraged cyclical plays, especially in the auto space, where he also has large stakes in Lear and Avis. As with other auto-related businesses, it’s debt-intensive and could use some fresh perspective on capital structure.
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