I'm waiting for this thing to pull back a bit and then I'm gonna load up and hold till Christmas time... I feel dumb for selling this at 108... this is a Christmas play that you should let run. The demand for GPS devices is nuts... cars, airplanes, boats, camping, fishing, pretty much anything that moves. And I don't think there's gonna be much competition for a few years.
GRMN is up 22% pre market! Shorts gonna get CRUSHED! Been holding this puppy since 106 to 125 down to 83 and back up to over 100 hundred again. Talk about a roller coaster ride! Just goes to show that it doesn't pay well to go short on a WINNER! VERY HAPPY THIS MORNING!
they just walked away from purchasing tele atlas.... besides that, I know Garmin has a huge market share for portable navigation, but what happens when the price of GPS drops to the point where all auto dealers are putting them for $500 or less. It used to be where they were only putting them in luxury cars, now im seeing them in cars selling under $20k. I know its still an expensive option, but im sure in the next 5 years navigation will cost $500 for an option like that. Also seeing huge competition, checked out the new Navigon and it sure looks nice. How long can GRMN hold the #1 position in Navigation.
I am familiar with Garmin products. I took a part time job at Sportsman's warehouse. We have cabela's opening today. Yippy! I am an outdoorsman when I am not trading, Duck Hunt, Bow Hunt, Flyfish, Sail, Kayak...etc... \they make great products and are the clear leader with their products. GPS is going to be in every car sold. You can go out and buy a gps hand held untit for less than $200, top units $500+ with full road mapping. Every road and map available. Topographical maps for backpackers hunters,,,,,many users of this technology. motorists, boaters, fisherman, hunters, campers.
I believe GRMN is the leader for the same reason RIMM is. They have great leadership & management & forecast. This means they are fully aware of what your fear is. If they are not...well that means their leadership/management is not that good after all and they will become extinct as a company! We shall see.
even if they're an excellent company and i expect them to post good numbers into next spring. long term i believe their market becomes commoditized and margins drop. could be a good stock to trade while it ranges. or at least hold the stock and go with options when the price hits certain levels. go long when under 90, short when over 120.
Article said GARMIN made brilliant move. Used Tele Atlas bid to 1) drive up offer price thus creating more debt for TomTom and 2) negiotiate a better long term offer with Navteq. Garmin outfoxes TomTom
And don't forget... they bought at least a 5% stake in teleatlas so they made a nice profit at Tomtom's expense