Garmin Ltd. (NASDAQ:GRMN)

increasing demand for sat/nav products

Every Cell Phone, including the $200 iphone will have serious GPS systems in them. Every iphone sold is one less Garmin needed.

GPS = ubiquity. Garmin will continue to be the leader not merely in GPS devices, which will be increasingly commodified, but in GPS solutions in virtually every area of business.

As the economy trips, people will not be buying their new fancy cars (or boats) with in-dash navigation systems. But they probably will spring for a cheaper upgrade via stand-alone GPS systems. Garmin has the brand power and the wide respect of consumers generally, so it can expect to benefit from this trend. Also, Garmin is highly diversified in other GPS markets (planes, even hikers and bikers), which could also see growth as urban dwellers bike more, and people look to smaller purchases.

Solid company in oversold mode, should bounce 20% in the next 12 months.

I love my Garmin. However, there are a lot of GPS guys out there. I'm thinking they can make a comeback, just maybe not this year.

With more and more smart phones coming out with GPS capabilities, case in point, the new and wildly popular iPhone, players like Garmin will have to step up to the plate and find a new product niche in order to compete. Consumers will no longer be looking for stand alone GPS devices in the near future. So until Garmin comes out to compete in the mobile phone market don't look for Garmin to do particularly well.

The need for these devices are become more and more unnecessary because of cellphones that now can do mapping for courses. Besides just cellphones, there are wi-fi connection that allows one to be able to get the maps and directions. So the primary function of a garmin accessory now have other players besides other GPS players. So the only way that Garmin can beat these other competitors is not going to be the accuracy of the machine and the voice by turn by turn direction. Because we see the iphone, the blackberry, the samsung and the LG phones are all now adding these features within the United States. Unless this company can find some alternative method besides the size of the screen to sell their product. Unless garmin can show otherwise that they have other software to make this device worth having maybe try to turn garmins into cellphone or something or multi-tasking phone device. Or even a remote control for a digtial home, I do not see Garmin going anywhere but going down.

Bought on a dip. Wall Street is pricing Garmin like it's going to stop growing and eventually fade into irrelevance. I do understand the fear...the company is somewhat of a one-trick pony, relying on one line of technology for its revenue, and that line of technology could be replaced (think HD radio with GPS technology built-in, or the increasing number of cell phones that have GPS). Despite these threats, there is still a point where the stock just seems too cheap. All of the fear is factored in, Garmin has a strong balance sheet and a powerful history of innovation, margins are superb, and cash flow exceeds GAAP earnings. Garmin would really have to suffer a complete destruction of its business for the stock not to be a bargain at these levels, and while I see that it faces competitive threats, I don't feel that they're severe enough to justify selling the stock down to its current price.

Undervalued company that is VERY well managed.

No debt.
4.1 Current ratio.

So we can see they are not in danger of going out of business anytime soon.

PE ratio of 13.4...that is definitely on their low end historically.

Now for GPS. Just because GPS technology has been around for a while does not mean that it has become mainstream and the market is saturated. How many people do you know that own a GPS system in their car? Do more than half of them own one? Chances are the answer is no, and someday virtually all cars will have a GPS system built in to their cars.

Garmin is the undisputed leader in GPS. There is a lot of competition, but Garmin's products are just plain superior. They are also innovators with a high inside ownership (THEY care what their stock does).

I see this as a solid long term investment.

I own shares of GRMN in my real portfolio.

P/E

Stock has come down to Earth. Stil exellent company.

Garmin has the nuviphone coming out in the 3rd quarter which should allow the company to recoup some of their recent losses. Overseas sales will also climb.

no debt
great margins!
Huge institutional ownership

13/50 MA crossover...
heading north!

Remember when Garmin was in bubble territory trading for $125/share? Well, now it's less than half of that and just broke to the upside out of a base at $50. The GPS market is still in its infancy and there is a lot of room to the upside over the next few months. Long July $55 Call options.

Its been murdered these last few months.
Solid quality product

This GPS market is flooded with competition and will continue to see number slide as lower prices will continue to ride this stock down.

This stock was picked by TMFInfiniteJest in the 2008 TMF Stockpicking Contest.

Way undervalued.

34.5% ROIC for past 5 years, strong growth in equity, sales, EPS, etc. This stock is a winner.