Tuesday, July 15, 2008

Garmin set to follow PALM and RVBD?

We are buying puts on Garmin (GRMN), as we see competitive pressures building in a very unfriendly consumer environment. GRMN could be at $25 in August after they report earnings around July 30th. If you're uncomfortable with options, you could short GRMN, with a failure target at $48.50, and a profit target of $32.00.

Of course, this information is provided for educational purposes only. You should do your own research before investing in any equity or option.

2 comments:

Anonymous said...

Thanks for the excellent guidance on google and apple.

Are you still short or holding puts on Garmin?

The Call Team said...

We believe GRMN has only run up on account of a major miscalculation after Apples earnings. Apple is lowering prices to squeeze market share and pretty much ruin the competition like INTC did to AMD. The iPhone will completely dislodge Garmin's Nuvi Phone and even give Research in Motion and the Nokia's of the world a running scare. We would wait for the Garmin conference call to find out more facts, although we said add to short positions in a bear market rally, and wait for pull backs in stocks like SEPR to add more shares. GRMN is a definite short/put opportunity in our opinion, even though it did try and break out through that $48.50 unsucessfully. Thanks for reading the Psychology of the Call.