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Fortunately from a timing standpoint, I cashed out half my position in Garmin (NASDAQ:GRMN) last week when it was already up close to 50% in just a couple months. No, unlike Acquantive (AQNT), I didn't call this takeover the day before; it was just a general valuation call.

I cut my stake in several holdings, especially China. But I'm still long the rest of the position regardless of the news that Nokia is looking to take out Navteq. The market overreacts, and I think GRMN will be back at its previous highs within short order. NVT was already up practically to Monday's purchase price over the past month in anticipation of a buyout. This announcement was priced in by the smart money. It's the speculators who got nervous and sold out today.

Primarily, people aren't going to start purchasing and using cell phones (and paying the requisite premium fees) for GPS when they are pretty much standard in all new cars and continue to make gifts and add-ons in the short term. Phones didn't kill MP3 players - they didn't kill digital cameras - and they didn't kill gaming systems, even though most phones now come with these capabilities.

Phones are phones, at least in the US. Granted, in South Korea and Japan, people rely on their phones for much more, but the US hasn't caught up yet. It will be some time until any impact to GRMN is evident.

Reiterating a moderate buy recommendation on GRMN.

Disclosure: long GRMN

Source: Garmin Will Recover From Navteq-Based Selloff