Give me a break! They upgrade the stock 6 months ago when it's trading a 30x 2006 earnings, and downgrade it now when it's trading at 20x 2007 earnings. Either they are the worst market timers ever, or they're a bunch of crooks.
Anyone see the comments from Next Inning Research? Don't know if I can legally cut/paste into here. They have an established record of standing up for Garmin and casting aspersions on their peers.
Date Broker New Old Comments
---- ------------ --- --- ---------
2/12/2007 Needham & Co. Hold Buy Broker cites Valuation
Valuation? Why does Needham think Garmin is overvalued? Beats me.
Really smart on the eve of the reporting of high triple digit growth in automotive for Garmin. Not to mention it looks like margins, the favorite issue of the shorts, are holding up better than anyone could have expected.
The PE ratio, calculated using last years earnings, is already looking rather low for a company with the growth prospects of Garmin Man (did you see how large he became to get maposoarus).
When the full year numbers from Garmin are reported and the projections for this year are released, Garmin PE ratio will make it almost a value play.
5-6 million units will be sold in the US in 2007 and with that level of growth and adoption of Garmin GPS products, the stock is way undervalued relative to its actual likely earnings.
"Really smart on the eve of the reporting of high triple digit growth in automotive for Garmin."
These downgrades have nothing to do with GRMN's performance or valuation. The bogus downgrades become a self-fulfilling prophecy. Its all about setting the stock up for pillaging on earnings day so the funds can reload at the expense of the poor retail guys - steal from the poor and give to the rich. If you're a long term holder, just turn off your screen for the next couple of weeks. If you haven't yet bought, hold off until the dip and buy along with the funds. There's no point in complaining about the fund/analyst conspiracy, because it isn't going to end any time soon. Just learn to ride on their coattails and you will begin to regard them as your friend, distasteful as that may be.
When I predicted Garmin would open higher on Monday
I wasn't counting on two downgrades.
As most of the longs on this board know by now,
these downgrades are contrary indicators.
Don't let them steal your shares.