jonreagan

Garmin Signs Deal with Navteq, Withdraws Tele Atlas Bid

Very smart move on GRMN's part. They knew very well TomTom would up the ante in a bidding war, for a company that wouldn't be a very good fit/supplier for GRMN. It only forced TT to expend more resources and over pay for Tele Atlas. GRMN's stock should continue to track upward as Holiday and 4th qtr sales grow.

Six Stocks to Buy, Five Stocks to Short

The broader point here is that retail investors need to be aware of the institutional forces at work, and realize that they are a pimple relative to what is really driving the market. No coincidence that there's a hedge fund redemption coming up this Friday; we saw the same kind of rampant dumping of great stocks like AAPL and RIMM by major funds before a similar date last August; they all recovered nicely afterwards. These stocks have great fundamentals, and most importantly, have product lines that people want; "the Google", as W would say, has a +55% market share. Unfortunately, the fundamentals aren't enough to predict market behavior, which has become totally irrational. CMI dropped 22 points after announcing solid 3rd qtr. earnings, which didn't meet consensus estimates. GRMN got hammered after the Nokia/Navteq deal was announced last month. A few days later prior to the market opening on Oct.31st, they announced a strategic move to buy Tele-Atlas....they get hammered again. After the market closed the same day, they announced a great quarter with record earnings....you can guess the rest;down goes the stock again in after hours trading.
I've come to the conclusion that the key word--whether trading or investing-- is momentum. Find out the "hot stocks" that the big boys like, and know the calendar so that you can hop off before you get burned. Otherwise, as a previous writer suggested, you'll end up with S&P five-star stocks like PG and GE that spend their lives going sideways.