I don't claim to be a great technician, but looking at a two year GRMN chart, I see a nice double bottom with subsequent progress. However, the 50 day moving average broke below the 200 long ago and the 200 has rolled over until it now matches the 50. This is breakout/breakdown area. Support at 36 and resistance at 40.
My question is whether the fundamentals support a breakout? I still see a weak market for consumer discretionary stocks. Is the economy going to finally take off? I don't really see it.
Everyone continues to view garmin as a PND only play - who will become obsolete due to cellphone navigation apps. I think that is a big error. GRMN can easily build the business (and someday maybe be aquired by an HON, UTX or even GE) by building beautiful niche GPS products and applications. This is what they are doing profitably now - and being shareholder frienly with the dividend.
Cellphone navigation is a commodity application. Fitness, outdoors, rural hiking, marine and aviation are niches that we who engage pay up to participate.
The marine industry saw a 10% uptick in new boat sales last year. Up for the first timee in9 years!
Bullish for GRMN
Now - all we need is a real great "suprise" on earnings and revenue from last quarter - and off to $45 the stock can go.
Even though PND sales are slowing if Garmin wins some OEM in dash they will be fine imo. I went on Amazon and Garmin owns the PND market with 20 or 21 of the top 25 sellers. Aviation is starting to come back and as stated the marine is getting better where they have a pretty good foothold. I'm just not sure about this 1/4 and am concerned about Europe, but I am very confident about GRMN for the long term. JMO, GLTA