They didn’t have much of a chance going into earnings. The whisper number of this high flying stock was as much as a $1.00. Garmin comes in with .89 and crushes the .82 cent average yet the stock still tumbled. When you have a stock up over 100%, the fast money desires become almost too much to achieve and this was the case today. I see it as a wait a few days and let the gamblers get out and then jump in and ride it another 100%, just like it did when it hovered around $100 and got knocked around. Do you remember what happened? Same thing. Garmin was pounded for a while, the stock split and boom, up 100%. This time will be no different.
One other huge reason to get in now is their announcement of the bid for Tele Atlas. They upped the bid given by Tom Tom to $3.3 billion and position themselves nicely since passing on Navteq, the other digital mapper. I’m sure Tom Tom will come back with a higher bid but Garmin has a better financial position and will get this easily albeit higher than they wanted to pay. Nokia stole Navteq and the Tele purchase won’t go so cheap. Either way Garmin stands to gain a ton on the purchase so expect it go through. In turn, the stock will settle and assume the climb