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.
5 comments:
This really looks like a bear mkt in the making. All the rallies are getting sold off.
Yes it is a bit over the top isn't it. We do appear to be oversold and sentiment is pretty horrible so I would not be surprised with a move up soon - we are holding in the 1440-1450 range. But the rallies will probably be limited for now up to 1490. In between 1440-1490 its sort of no man's land and it could go either way very quickly. On the plus side we are getting some nice valuations on some great stocks for the first time since mid August. I think a lot of companies that will be fine in a slowdown are getting tossed out with the rest, but that will take time to sort out - investors are sort of panicky now.
I agree with the "sell on the news" rationale and did so myself...however, with this risk off the table, I will definitely be back to buy in the low 90's. I just submitted an article about how GRMN is a good buy considering this new info....should be up on Monday. - Parker
sorry, article submission was to www.seekingalpha.com - Parker
Parker I agree. The stock went right to its 50 day moving average of $102 as the high of the day, so let's see how it does. There is also now a gap right around $89 so I'd be interested either on a breakout above $102 or a pullback to $89. It could go either way from here.
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