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A provider of navigation, communications and information devices, which are enabled by GPS technology. The Compny designs, develops, manufactures and markets a diverse family of hand-held, portable and fixed-mount GPS-enabled products.
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JTHokie (< 20) Submitted: 5/21/08 11:29 AM : Start Price: $45.75 GRMN Score: 6.82
I was in love with this stock for a while, too. But looking at this company objectively, it has no moat. Thats why prices are coming down, as GPS is becoming a commodity offered readily by all the major communications companies (Nokia, Apple, etc....). Sure the stock is cheap, but which would you rather by, an sleek new Smartphone with built-in GPS or a bulky, overpriced one-trick pony like a Garmin? Garmin is coming out with a Smartphone, but I doubt it will be competitive with an iPhone or a Blackberry.
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punkyjake (42.73) Submitted: 5/31/08 3:55 PM
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I hate cell phones, I always lose them or get them wet. I expect Gps to be built into every car before long.I know for a fact they are already designing a hole on the dash board for every major car company.
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vbretsch (89.17) Submitted: 7/08/08 10:52 AM
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Most cell phones (mine too) is able to play mp3-files. Nonetheless i did buy an additional ipod for music-listening. So has my sister, and her boyfriend...What i want to say is that people are going to buy specialty devices if they are useful and practical. The garmin devices that i know off are stylish, easy to use and specialized for its field. I believe that this is not something any other firm is able to deliver easily, therefore this seems to me like some moat in favor of garmin.
huddaman (96.43) Submitted: 7/30/08 1:10 PM
Moat does not mean absense of competition. Companies with Moat will have competition too. Infact without competition, what you see is not moat but monopoly. As long as there is competition, there is going to be price cutting in technology. The moat is their years of experience in buidling GPS technology, perfecting the device, strong and first class brand name, etc. Contracts from major car manufacturerers for built-in GPS is proof of their strong moat. One e.g is Nokia for cell-phones. It has moat, but there is still plenty of competition in the space. Also the price competition in the space will exist forever too. But they still have a strong moat. Toyota Motors, Canon, WalMart all these have strong moats, but co-exist with competiton and are doing great.
mitheralhammer (< 20) Submitted: 8/04/08 6:01 PM
The thing about Garmin is not that it produces handheld GPS systems, but in it's domination of the Aviation market. Therein lies Garmins moat if you will. All the best aircraft have Garmin GPS/Nav systems in them, and aviation is a steadily growing field. Also, compliance with FARs(Federal Aviation Regulations) makes the aviation industry very difficult and expenive to break into.
bluedome (< 20) Submitted: 8/05/08 11:26 AM
Domination of the aircraft market is completely irrelevant. It totals something like 6000 units a year. BFD. And if that market isn't shrinking yet with $5 avgas, it will be soon.
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