Q. Can I expect my shares of Goodyear Tire & Rubber Co. to continue to gain in price? — J.O., via the Internet

A. The biggest US-based and third-largest global tyre maker can see some light at the end of the recession tunnel:

• Chairman and CEO Robert Keegan has noted "some signs of stabilisation and recovery" even though the situation remains fragile. Car owners can only put off replacing their worn tyres for a finite period of time before it simply must be done.

• The United Steelworkers approved a new contract covering about 10,300 workers that should prevent the closing of a half-dozen plants. Goodyear also agreed to invest $600 million to keep plants up to date.

• It should be possible to raise some prices thanks to President Obama's approval of the International Trade Commission's recommendation to impose new tariffs on imported Chinese tyres. Those three-year tariffs, which raise import duties by 35 percent the first year, were added to the existing 4 percent tariff.

Blunting that tariff impact, however, is the fact that most Goodyear tyres are sold outside the US. The company's focus on premium tires also means it hasn't been competing directly with those typically low-end Chinese tyres.

Shares of Goodyear (GT) are up 189 percent this year following last year's 79 percent decline. While the company lost $221 million in the second quarter on lower sales, that loss was about half what many analysts had predicted.

To reduce its high cost structure, Goodyear has been cutting costs and eliminating thousands of jobs this year. For example, it recently said it will stop making consumer tires at a plant in Amiens, France, resulting in a loss of about 820 jobs, and close its tyre plant in the Philippines, eliminating 500 positions there.

The consensus analyst recommendation on Goodyear stock is "buy," according to Thomson Reuters, consisting of two "strong buys," three "buys," two "holds" and one "sell".

Goodyear offers tyres under the Goodyear, Dunlop, Kelly, Fulda, Debica, Sava and other Goodyear-owned house brands, as well as under private-label names. Even though it is remaking itself as a leaner, more efficient company, the financial drawbacks are that it carries a large debt load and has significant pension obligations.

Earnings are expected to decline 198 percent this year and rise 340 percent next year. Long-term earnings are projected to be 35 percent versus 13 percent forecast for the rubber and plastics industry.

Q. I am confused by the term "growth and value" applied to mutual funds. I thought each was mutually exclusive, but I see that category for some funds. — S.K., via the Internet

A. Growth and value, sometimes also called blended, is a common term that can mean one of two things:

• The fund is an opportunistic one that invests where it finds the most attractive stocks, with no limit on style.

• It espouses the concept of "growth at a reasonable price" by investing in stocks that are either growth or value, or in stocks that have some characteristics of each.

This means you might have to take a look at what the fund actually holds in its portfolio to determine where it lands on that continuum.

"An example of growth and value would be the Rainier Funds, which look for stocks with above-average growth and below-average valuations," said Mark Salzinger, publisher and editor of The No-Load Fund Investor (www.noloadfundinvestor.com) in Brentwood, Tenn. "They are sector-neutral, so you get exposure to all parts of the stock market."

His favourite fund in that group is Rainier Mid Cap Equity (RIMMX) because of its fine long-term record.

Andrew Leckey answers questions only through the column. Address inquiries to Andrew Leckey, 555 N. Central Ave., Suite 302, Phoenix, AZ 85004-1248, or by e-mail at andrewinv@aol.com.