Tyre Companies

Any particular reason why tyre companies like Apollo, Ceat, and JK are up by over 3% today (10/11/2010)? JK reported dismal results on the 9th and Apollo will most likely be the same on the 11th.

If anyone is wondering why the above is happening, it is because of the news today on "Tyre firms may raise prices by 5%". There is always a reason...

Yes, also Apollo Tyres reported dismal results today hence the big crash. I had bought it at 73.9 a few days ago. Thankfully, I placed a SL order at 74.7 today (as an afterthought..just in case) and it got triggered, then the stock crashed. I am counting my lucky stars that I decided to place that SL because Apollo hit 70 today!

I know man, it was a ludicrous buy and somehow I got out alive :lol:! When I look now at the charts, technically and fundamentally this is a BIG sell.

But, I don't understand why tyre companies are making losses. They are saying that it is because of high rubber costs. Yet, tyre companies don't increase their prices but simply absorb the expense. You would think that with so many cars being sold in the last year, tyre companies would make a killing .

Perhaps, I was expecting a positive surprise today from Apollo on the results.....but it didn't happen.