Comments on Tim Weidman's articles RSS Syndication from SeekingAlpha.com http://seekingalpha.com/author/tim-weidman/articles http://seekingalpha.com/article/83099-garmin-market-erroneously-pricing-in-nuvifone-failure?source=feed#comment-214841 214841 Fri, 25 Jul 2008 21:32:05 -0400 http://seekingalpha.com/article/83099-garmin-market-erroneously-pricing-in-nuvifone-failure?source=feed#comment-212007 212007 Tue, 22 Jul 2008 23:02:25 -0400 (2007 Annual Report) p70

Automotive/Mobile 73.69%
Outdoor/Fitness 10.70%
Aviation 9.30%
Marine 6.40%

While I agree with a couple of points made here regarding the Nuvi-Phone I will try and lay to rest a couple other misconceptions:

1) The cost of Nav on the phone plan is not in Garmin's hands, that will be determined by the carriers who decide to pick up the Nuvi-Phone line within their product offering. This is simply a feature of the phone which does not use the "network time" of the carrier's network, ie; it is occupying space within the spectrum of bandwith and therefore costs the cellular company nothing to offer.

2) Cell Phone technology, just like GPS technology is very complicated and new entrants to this business will have hurdles to overcome with many Cellular Platforms, ie; tdma & cdma technologies.

I feel GRMN is making the right move in venturing into new areas. As the margins in the gps industry continue to shrink and competition increases, they will need to stay on the edge of innovation and move into markets not yet explored with a more broad product mix. As I pointed out above, the automotive/mobile segment make up 3/4 of their Net Sales. This is not good news if the margins continue to shrink at present rates if they cannot find other sources
of profit within other segments of the business.

Garmin does however have good leadership and I have all confidence that they will find a solution to the shrinking margins. With all this said, I feel they are a great value play at their current level 0f 48.75. Industry P/E ratio is 16, Garmin is trading at 11 times earnings. If you value them as average within the tech sector and assign a P/E of 16, this puts them at 63.75/share.

Tom Tom announced earning yesterday and their sales were up 70% year over year for the quarter. In news today, Garmin illuded to the fact that sales within the U.S. gps market were up 130% YOY. If that is the case we should see Garmin beat the street estimates of 1.00/share this quarter and I would predict you would see it more along 1.03/share given the decrease in margins.

I only recently purchased Garmin, but I feel like I stole it at 42.75. In my opinion, the stock is well undervalued. I guess we'll find out on July 30 when this quarter's earnings are announced.]]> http://seekingalpha.com/article/83099-garmin-market-erroneously-pricing-in-nuvifone-failure?source=feed#comment-211851 211851 Tue, 22 Jul 2008 17:50:08 -0400
July 31st should be the day we hear alot more about the Nuvifone..stay tuned]]> http://seekingalpha.com/article/83099-garmin-market-erroneously-pricing-in-nuvifone-failure?source=feed#comment-200754 200754 Tue, 08 Jul 2008 13:18:23 -0400
But competing with the likes of Nokia, Apple, RIMM, Samsung, Motorola and Google is highly risky in the cut throat cell phone market.]]> http://seekingalpha.com/article/83099-garmin-market-erroneously-pricing-in-nuvifone-failure?source=feed#comment-198336 198336 Thu, 03 Jul 2008 22:33:37 -0400 http://seekingalpha.com/article/79806-energy-conversion-devices-stock-up-75-since-earnings?source=feed#comment-196649 196649 Tue, 01 Jul 2008 13:01:43 -0400 http://seekingalpha.com/article/83099-garmin-market-erroneously-pricing-in-nuvifone-failure?source=feed#comment-195812 195812 Mon, 30 Jun 2008 09:43:48 -0400
We'll start to see in the next few quarters If i was right ]]> http://seekingalpha.com/article/83099-garmin-market-erroneously-pricing-in-nuvifone-failure?source=feed#comment-195649 195649 Mon, 30 Jun 2008 01:38:13 -0400
But with momentum players controlling so much of what happens in each sector and stock, who today cares.

I had a good profit in GRMN and let it slip away. I can't say why the stock has dropped from over 50 to the low forties, but that type of drop is surely telegraphing us something negative.

I'm out for the time being, but with such a good balance sheet I'm going to keep my eye on GRMN for future investing.]]> http://seekingalpha.com/article/83099-garmin-market-erroneously-pricing-in-nuvifone-failure?source=feed#comment-195584 195584 Sun, 29 Jun 2008 22:46:18 -0400 http://seekingalpha.com/article/83099-garmin-market-erroneously-pricing-in-nuvifone-failure?source=feed#comment-195205 195205 Sun, 29 Jun 2008 11:59:09 -0400
GarminNuvifones.com]]> http://seekingalpha.com/article/83099-garmin-market-erroneously-pricing-in-nuvifone-failure?source=feed#comment-195170 195170 Sun, 29 Jun 2008 11:06:15 -0400
Nothing you have said about the GRMN phone seems to be radically new. Every feature you have mentioned is available on the AT&T Slider. Including Google Maps. I have a Taiwan ETEN cell phone and I have used Google Maps on it for over a year WITH GPS. Gas Stations, restaurants and all.]]> http://seekingalpha.com/article/83099-garmin-market-erroneously-pricing-in-nuvifone-failure?source=feed#comment-195134 195134 Sun, 29 Jun 2008 10:29:04 -0400
Regards,

Shira Jacobson
Seeking Alpha Editorial Team ]]> http://seekingalpha.com/article/83099-garmin-market-erroneously-pricing-in-nuvifone-failure?source=feed#comment-195132 195132 Sun, 29 Jun 2008 10:26:35 -0400
Garmin investors who are already in the stock have no control over the price.....if anything, it should read " The Market is erroneously pricing in a Nuvifone failure.

]]> http://seekingalpha.com/article/79698-pyramid-oil-shares-set-to-spike-again?source=feed#comment-191060 191060 Mon, 23 Jun 2008 13:35:07 -0400 http://seekingalpha.com/article/79698-pyramid-oil-shares-set-to-spike-again?source=feed#comment-190526 190526 Sun, 22 Jun 2008 20:54:28 -0400 http://seekingalpha.com/article/79698-pyramid-oil-shares-set-to-spike-again?source=feed#comment-187625 187625 Wed, 18 Jun 2008 09:53:57 -0400 http://seekingalpha.com/article/79698-pyramid-oil-shares-set-to-spike-again?source=feed#comment-187624 187624 Wed, 18 Jun 2008 09:53:34 -0400 http://seekingalpha.com/article/79806-energy-conversion-devices-stock-up-75-since-earnings?source=feed#comment-179954 179954 Thu, 05 Jun 2008 18:49:14 -0400 I keep thinking this is going to happen....... what's your take?]]> http://seekingalpha.com/article/79698-pyramid-oil-shares-set-to-spike-again?source=feed#comment-179817 179817 Thu, 05 Jun 2008 14:22:36 -0400 http://seekingalpha.com/article/79806-energy-conversion-devices-stock-up-75-since-earnings?source=feed#comment-178805 178805 Tue, 03 Jun 2008 18:53:30 -0400 http://seekingalpha.com/article/79698-pyramid-oil-shares-set-to-spike-again?source=feed#comment-178140 178140 Mon, 02 Jun 2008 16:08:16 -0400 http://seekingalpha.com/article/79698-pyramid-oil-shares-set-to-spike-again?source=feed#comment-178139 178139 Mon, 02 Jun 2008 16:05:39 -0400 http://seekingalpha.com/article/79698-pyramid-oil-shares-set-to-spike-again?source=feed#comment-177960 177960 Mon, 02 Jun 2008 11:25:38 -0400 theinvestingspeculator...]]> http://seekingalpha.com/article/79698-pyramid-oil-shares-set-to-spike-again?source=feed#comment-177884 177884 Mon, 02 Jun 2008 10:01:53 -0400
PDO will beneift in the coming quarters from a natural gas find in Texas, but even with that additional production they will have a hard time hitting 25 cents in quarterly EPS.

Why in the world should PDO make anew run at $30 per share and thus trade at 30 times earnings? It shouldn't. ]]>