Garmin trades all over the map

re: Garmin trades all over the map

Dick — Thu, 21 Feb 2008 21:02:36 GMT

If you think the BMW GPS or any for that matter "works better than any I've seen"

You haven't seen the new Garmin Nuvi 650 and at $299 at Costco.com it's a bargain compared to the $2K+ you pay for the BMW unit.

re: Garmin trades all over the map

Mike — Thu, 21 Feb 2008 19:46:03 GMT

Buy a BMW they actually have GPS that works better then any i have ever seen and the invetment in the car will pay in the long run.

re: Garmin trades all over the map

Philip — Thu, 21 Feb 2008 19:31:10 GMT

Inventory and accounts receivable are close to $1.5 billion, any consumer led slowdown in 2008 may lead to write-offs in AR and write downs of inventory.

TTM PE is over 20, any kind of slow down in consumer spending will see that PE shoot up unless the stock price goes down to keep the stock at a 20 PE multiple. If margins continue to erode, even if revenues continue growing, PE will also have to grow to provide stock price gains.

Selling at 6 times book value, so no margin of safety if there is a slowdown.

Bottom line - great stock if you think there is nothing but blue skies ahead. If you are a pessimist, stay clear of this stock.