Why Shares of Garmin Ltd. Were Heading North

Is this meaningful? Or just another movement?

Feb 19, 2014 at 2:31PM

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Garmin Ltd. (NASDAQ:GRMN) were navigating higher today, climbing as much as 12% on a strong fourth-quarter earnings report.

So what: The maker of GPS devices and other gadgets posted a profit of $0.76 a share, ahead of expectations of $0.62. Revenues dipped slightly, falling 1.1% to $759.7 million, but that was much better than expectations of $712.8 million. Despite the secular decline in personal navigation devices, Garmin has found stability in its outdoor, fitness, aviation, and marine segment, sales of which grew 14% in the quarter.  That shift has enabled gross margins to expand, lifting profit from $0.68 a year ago to $0.76.

Now what: Garmin shares hit a 52-week high on the news, and the company plans to up its already strong dividend by 6.7%. Further instilling investor confidence was the company's outlook, which projects revenue of $2.6 billion to $2.7 billion, and EPS of $2.50-$2.60 for 2014. Analysts had been eyeing sales of $2.58 billion on EPS of $2.56. While Garmin's strong growth days are clearly past it, the company seems to have found its niche in specialized navigation devices and, with its near-4% dividend yield and share buybacks, the stock looks like a solid value play for the foreseeable future. 

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Jeremy Bowman has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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