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What: Shares of Goodyear Tire & Rubber
So what: Wells told the audience at the J.P. Morgan Auto conference in Detroit that Goodyear was successfully offsetting rising raw-materials costs with a strategy of targeted pricing and marketing of higher-priced tires, The Associated Press reported.
Now what: Color me surprised that investors were surprised by this news. Just two weeks ago, Goodyear reported blowout second-quarter earnings, thanks in part to a much higher gross margin. Signs were already pointing to tight cost controls -- Wells merely reaffirmed what we already knew. Do you agree? Disagree? Weigh in using the comments box below.
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Fool contributorTim Beyers is a member of theMotley Fool Rule Breakers stock-picking team. He didn’t own shares in any of the companies mentioned in this article at the time of publication. Check out Tim'sportfolio holdings andFoolish writings, or connect with him on Google+ or Twitter, where he goes by @milehighfool. You can also get his insightsdelivered directly to your RSS reader.
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