Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Cooper Tire & Rubber
So what: Cooper reported net income of $0.71 per share, easily beating Wall Street's estimate of $0.60 per share. Revenue rose 10% to $883 million, and the company announced a 10% increase in production next year.
Now what: The earnings beat was in the face of higher raw materials costs dragging down results. Given management's confidence to increase production, ability to pass on price increases, and a relatively low P/E, I think Cooper provides a nice risk/reward for investors. I'm buying today's move as the start of a nice move upward.
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