Hundreds of articles are being written about Garmin's blowout quarter as a type so I won't spend a lot of time rehashing the financials, but the numbers and guidance does bring a smile to my face. Year over year, GRMN doubled revenue in Q4 and earnings increased by 70%.What they made, they sold and the margins are holding up better than analysts expected. Their 2008 guidance sets expectations that revenue will exceed $4.5 billion and earnings per share will exceed $4.40. These are big numbers and the stock is technically set up to take off.
It was a screaming buy at $56.00 when I bought my shares, but it is still a buy today. I expect a double in this stock price in 2008 from here.
The consumer electronics market is alive and well for device makers that are willing to innovate and provide the "wow" factor. GRMN and AAPL both fit this category, but have been taken down with the rest of the sector.
Looking at the chart, the volume is there and buying above $74.00 could push this stock to $80.00 in the short term. A good base has been formed between $62 and $73 allowing this stock to efficiently move higher.
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