Is Garmin a Fantastic Stock or What? - Stocks - Options - Mutual Funds Article - sirf, garmin

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Is Garmin a Fantastic Stock or What?

Article Submitted by: AronLiv
Stocks - Options - Mutual Funds

Tags: Sirf, Garmin.

Garmin is on an absolute tear, up over 100% over the last three months. I am trying to figure out if it is still a buy.

Submitted: Aug 7, 2007 Views: 561 Comments: 3 Likes: 29

Garmin reported absolutely amazing results last week. Total revenue for the second quarter was $742 million, up 72% year over year, handily beating the $646 million consensus estimate. Diluted earnings per share of $.98 were up over 75% year of year, beating the $.73 consensus.

The company raised guidance for the full year to $2.8 billion in revenue and $3.15 in earnings per share.

The stock is now trading at 100 and the company is now trading at 30 times its earnings.

I am considering buying the stock here as it seems that the 30 multiple is not expensive if the company can maintain its current growth rate.

I am concerned, however, that the entire GPS / navigation functionality will become incorporated into cell phones within the next several years. In that case Garmin will be a bust, and a company like Sirf, which makes the chips, would be a better investment.

I am very interested in others' views of this stock?

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Comments Received:

ut129
(Unregistered)

Garmin is, like Apple or RIMM, just an absolute monster with unlimited potential as the leader in a specific consumer electronics space. I regret not buying earlier at a fraction the price, but I finally jumped in. I don't think it is too late. I don't know about Sirf - chips are tough to read.

Posted: Aug 8, 2007

garminforme
(Unregistered)

Judging from the performance of the stock and from the products, I would say that it is a pretty damn fantastic stock.

Posted: Aug 8, 2007

americano
(Unregistered)

Nothing can sustain a 100% growth rate over prolonged periods. Watchout for hype vs facts.

Posted: Aug 9, 2007

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