Friday, November 16, 2007

Garmin (GRMN) Withdraws Takeover Bid, I am Selling

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Garmin (GRMN) is withdrawing its $3.3 Billion Takeover bid for Tele Atlas, and the stock is up 15% this morning on the news. While probably not a great thing for the very long run, its good for the short and middle run. The really good news is the deal with Navteq through 2015; this removes one of the major worries overhanging the stock.

I missed the spike this AM to $100 since I was too busy blogging and lost in my thoughts, but with the stock near $96 (up 15%) I am going to sell and close my position and revisit the stock later. I like Garmin, but with so many other stocks on sale, and this huge spike I am going to get my cost out and look for a lower entry point either in this name or others. In a better market I'd probably actually be buying off this news. I think the market is oversold here, but until I see a break above 1490 on the S&P, I am remaining in cautious mode.

I bought this last stake post earnings, and when they announced the acquisition and these shares were bought in the $91 to $96 range. With the stock down to near $80 of late and the overhang of this acquisition hanging over the shares, I feel fortune to get out with a small profit. Garmin was a 1.4% position, which I am now closing; this raises about $14.4K.
  • Garmin, the world's largest maker of personal navigation devices, withdrew a $3.3 billion takeover bid for Dutch digital mapmaker Tele Atlas NV on Friday, clearing the way for rival TomTom.
  • Separately, Garmin said struck a deal with Navteq Corp., the only other digital mapmaker other than Tele Atlas to have global operations, guaranteeing access to Navteq maps through 2015.
No position

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