Invested in Garmin?

Question

I am invested in Garmin. I read their balance sheets, their financial blog, whatever I can get my hands on. I jst don't get it, thatthey are shorted like this. They are the biggest company in that market, their assest look sound, the expectations are reasonable. But the stock value goes south.

What is your take on that? Am I just a sucker? Or is there a end to that madness?

Answer 1

At one time I too thought Garmin was a good investment.  I changed my mind and liquidated my position months ago.  Remember CB radios.  There are some parallels to GPSs.

Answer 2

Garmin profits have declined in the first quarter of this year.  And their profits may decline even more due to decreasing car sales, increasing competition from other companies, and declining disposable income among consumers.

Stock prices reflect not just the present situation but also the expected future situation.   And perhaps the future of Garmin doesn't look so good to many investors.

Whether any company does well in the stock market or not depends not just on the company itself but also in its competition and the general state of the economy.  

You can have the best company in the world.  But if many of its customers are crashing and burning all over the place.  Then being good is not going to save this company from serious trouble.