Kris Weinisch

1 Comment

    • Garmin: Clearly Something's Not Right [view article]
      Hey, whoever made the point about Seeking Alpha, couldn't agree more. I can't say it's gone down hill (haven't visited for long enough) but it's definitely at the bottom of the hill. This is the third or fourth time ETrade has directed me to an awful/useless piece of writing. I'm not sure who these editors are but they could use some work.

      In my opinion, the point of this article (yes, there is one but it's subtly stated) is flawed. Insinuating that Garmin is a fad device maker is ludicrous. Croc shoes are fad, GPS navigation is "need." Having recently moved across the country, the value of a navigation system has become extremely valuable.

      The company makes useful products that consumers use every day to get from point A to point B. They also make products for a number of other industries including hiking and fitness. And what about the financials?

      There are few if any companies with the financial strength of Garmin. Consistent earnings increase, EPS increase, Sales increase, cash on hand is strong and no long term debt. This company makes necessary products and is extremely well run.

      The stock is down because Garmin and it's competitors are seeing the price of personal GPS devices drop overall in the U.S. and in Europe. That would be a concern if the company didn't have a return on capital of 42%! Clearly that is an unrealistic number to sustain over the long term but the company will continue to grow and prosper.

      So now for some predictive writing (Alpha may want to consider this from time to time), BUY THIS NOW. At sub $50 Garmin is more than half it's target price. Even if it loses another 10%, you're going to get that back on the runup. The next earnings report is due in the next month or two and I expect the effects of consumer discetionary spending declines to be seen, but inevitably this stock will rise...and soon.

      Good investing-
      -KJW
      Apr 09 12:09 PM
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