Garmin Snap-Back (GRMN)

Posted in pre-market 
November 4th, 2009

Garmin Ltd. (GRMN) Is seeing a recovery snap-back rally this morning on its earnings the week after the Google Navigation launch.  The company posted $1.02 EPS and $781 million in revenues with improved margins.  Sales were up 17% sequentially but were down 10% from a year ago.  We had estimates at $0.69 EPS and aboiut $704 million per Thomson Reuters.  Margisn were 52.4% vs. 44.3%.  The stock was briefly halted and we have not yet heard guidance in teh conference call.   At 8:42 AM EST we have shares up over 4% at $32.80 on about 500,000 shares versus an average daily volume of 3 million shares.   Be advised that the stock was above $38 before the Google news last week, so as long as guidance is not lowered there is still much room here if traders don’t use a pop as a chance to short more.  The latest short interest is over 17.4 million shares.  -JON OGG

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