Further, Goodyear demonstrated confidence in the likelihood of that growth by increasing tire prices by up to 6%, to recover higher raw material costs, effective December 1. The First Call FY2009/FY2010 EPS estimates for GT are a loss of $1.12 and a profit of 78 cents. That FY2010 EPS estimate will likely prove to be low.

Also, look for GT to benefit from the used-car maintenance trend. With more Americans not in a financial position to buy a new car, they're holding on to their used cars longer. But tire replacement is not an option but a requirement, which bodes well for GT.

Technically, despite the recent sell-off, Goodyear's stock chart remains in an uptrend, hence this is a classic buy on pull-back opportunity. GT will likely trade above in $20 in 2010.

Stock Analysis: Goodyear Tire and Rubber Co. is a moderate-risk stock. If you've already purchased the company's shares, hold them. If not, consider buying a 25% position in GT now; then buy another 25% in one month, if U.S. and global economic conditions don't worsen substantially. Under any circumstance, don't buy more than 50% of your GT position before December 2009. Sell/Stop Loss if you were to buy shares in this company: $6.

Disclosure: Lazzaro has no positions in stocks, but does own shares in two Pimco Bond Funds: PHDAX and PYMAX.