Goodyear (GT - option chain) stock is trading lower today after the company announced a $435 million offering of preferred stock. The common stock is moving sharply lower this morning because it will be devalued when these preferred shares convert to common stock in 2014. If you think this stock won't be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on GT.

This morning, GT opened at $14.99. So far today the stock has hit a high of $15.20 and a low of $14.65. As of 12:25, GT is trading at $14.69, down $0.76 (-4.9%). The chart for GT looks neutral and S&P gives GT a neutral 3 STARS (out of 5) hold ranking.

We recently launched coverage of Kayak with a roughly $800 million valuation. Unlike online travel agencies like Expedia (EXPE) or Priceline (PCLN), Kayak does not provide online bookings directly but provides consumers a one-stop research solution to best fares along with other value-added services like flight status updates and pricing alerts.

We believe advertising revenues make up over 60% of Kayak's valuation while referral fees from hotel queries and air ticket queries constitute 21% and 14% respectively.

Goodyear Tire and Rubber (GT) finally remounted major, psychological resistance at $10, pushing all the way to $15.35 this winter, before pulling back slightly. I first discussed the stock here on May 5, 2009, at a price of $13.30, and I obviously still like the shares.

Assuming the price of oil doesn't rise to the price of a preferred Bulova watch, the U.S. economic expansion will continue, and that demand, along with the global market, will generate at least adequate tire demand in the immediate years ahead.

Goodyear Tire & Rubber (GT), North America's largest tire maker, posted losses in the forth quarter and for the year. This marks the third-straight annual loss.

To stave off further deterioration, the company is closing its Tennessee plant. In 2009, union negotiations left the plant unprotected, meaning that it could be closed at the company's discretion.

Analyst upgrades:

• Netflix (NFLX) upgraded to Buy from Underperform at BofA/Merrill.
• Rockwell (ROK) upgraded to Outperform from Market Perform at Wells Fargo.
• Chico's (CHS) upgraded to Outperform from Market Perform at FBR Capital.
• Ann Taylor (ANN) upgraded to Buy from Hold at Citigroup.
• Meredith (MDP) upgraded to Buy from Hold at Citigroup.
• CarMax (KMX) upgraded to Outperform from Sector Perform at RBC Capital.
• Family Dollar (FDO) upgraded to Outperform from Sector Perform at RBC Capital.
• Siliconware Precision (SPIL) upgraded to Outperform from Neutral at Macquarie.
• Amedisys (AMED) upgraded to Buy from Hold at Jefferies.
• TRW Automotive(TRW) upgraded to Buy from Neutral at Goldman.
• Magna (MGA) upgraded to Neutral from Sell at Goldman.

Analyst Upgrades

• Xilinx (XLNX) to buy from hold at Auriga.
• Orion Energy (OESX) to buy from neutral at Roth Capital.
• Goodyear Tire (GT) to buy from fair value at CRT Capital.
• RadioShack (RSH) to neutral from underperform at Wedbush.
• Novo Nordisk (NVO) to buy from neutral at Goldman.

Last week copper set record highs. JP Morgan Chase (JPM) is sitting on $1 billion of copper. Today, the story is rubber. Rubber jumped to a record high of $5.05 per kg, according to the Financial Times.

Rubber is used in tires, condoms and gloves. The price has jumped 25% in two months. Bridgestone (BRDCY) Michelin (MGDDY) Goodyear (GT) and Continental have raised tire prices three times in 2010.

In this market, companies really have to earn their stock price gains. Most have to exceed earnings estimates -- in some cases by a 10% premium -- or the street treats the stock rudely.

Goodyear Tire & Rubber (GT), first discussed here on May 5, 2009 at a price of $13.30, is a classic example of this no-charity market.

The U.S. auto slump appears to ending, the global auto market will generate at least adequate tire demand, and GT is experience modest pricing power, but institutional investors have not fallen in love with GT yet, and the stock over the past five months has not been able to break decisively above resistance at $12.

Analyst Upgrades

• Walgreen (WAG) and Triumph Group (TGI) to buy from neutral at UBS.
• Focus Media (FMCN) to buy from neutral at Goldman.
• Home Depot (HD) to outperform from market perform at FBR Capital.
• Arbitron (ARB) to overweight from neutral at JPMorgan.
• Waddell & Reed (WDR) and Legg Mason (LM) to overweight from equal weight, and Janus Capital (JNS) to overweight from underweight, at Barclays.
• Central Euro Media (CETV) to buy from hold at Deutsche Bank.
• GenOn Energy (GEN) and Ntelos (NTLS) to outperform from sector perform at RBC Capital.
• Cooper Tire (CTB) to buy from neutral and Goodyear Tire (GT) to buy from underperform at BofA/Merrill.

The Goodyear Tire & Rubber Company (GT) was down big this afternoon. At one point, shares were off by over 9% to a quote of $10.53. The 52-week low for the stock is $9.10; the 52-week high is $16.48. Volume, as you might have guessed, is robust. I would therefore categorize the sentiment in this entity as decidedly bearish.

The one-year chart hammers home the notion. The downtrend is clearly noticeable. Of course, generally speaking, buying lower is preferable to buying higher. Do the third-quarter numbers give us a reason to seriously consider this name on the pullback?

The bear-hug formation by Goodyear Tire & Rubber Company (GT), on May 5, 2009 at a price of $13.30, appears to be over, and now may be good time to consider the shares.

After the August 30 stand aside observation, Goodyear continued to downtrend and took out key, psychological support at $10, dropping to a 2010 low of $9.10 in September. The stock has since move back above the $10 level, and closed Tuesday up 32 cents to $10.88, amid a broader market rally.

To be sure, this a stock market that's not giving companies the benefit of the doubt.

Case in point: Goodyear (GT), which I first wrote about on May 5, 2009 at a price of $13.30, has formed a bear hug, despite modest pricing power, increased capacity utilization, and a better overall sales mix.

Further, unless the U.S. economy, whose GDP growth slowed to 1.6% in the second quarter, lapses in to a double-dip recession, GT remains a growth story on likely, increasing U.S. vehicle tire sales in 2010-2011.

Let's take a look at two companies that reported quarterly numbers on Thursday. One is a concern that helps cars have a smooth, safe ride; the other is a business that helps consumers buy the electronics they need.

The Goodyear Tire & Rubber Company (GT) has a one-year chart that I would argue is not too attractive. The 52-week low on the stock is $9.65; the 52-week high is $18.84. Yesterday, the shares were under pressure after the release of the second-quarter report. They closed down 5.7% to $11.27 on Thursday. Volume was very strong.

If you're looking for a bargain stock -- one with risk, to be sure, but also with upside potential -- consider Goodyear Tire & Rubber Co. (GT), first discussed on May 5, 2009 at a price of $13.30.

Excluding items and one-time charges, Goodyear reported first quarter earnings of 18 cents per share, compared to the Thomson/Reuters First Call estimate of a loss of 3 cents. Wall Street initially pushed the shares up, but quickly took back the gains, and the shares are trading about where they were prior to the first quarter report, around $14.

Is Goodyear Tire and Rubber Company's (GT) first quarter performance saying something about the state of pricing power in mid-2010? Perhaps.

Excluding items and one-time charges, Goodyear reported first quarter earnings of 18 cents per share, compared to the Thomson/Reuters First Call estimate of a loss of 2 cents. Wall Street initially pushed the shares up, but quickly took back the gains, and the shares are trading about where they were prior to the first quarter report: around $14.

First quarter revenue increased 21% to $4.3 billion. Tire shipments totaled 43.9 million, up 14% compared to a year ago.