Garmin Trying to Find Its Way After Pulling 2009 Guidance
Shares of Garmin (GRMN) are up more than 11% this morning, despite reporting fourth-quarter profit dropped to 78 cents a share, from $1.39 a share a year earlier.
The navigation-device maker reported revenue fell 14% to $1.05 billion, which was below the street expectations for $1.12 billion. The company reported a drop in its gross margin to 41.1% -- citing a decline in the average selling price of its devices during the holiday season.
Looking ahead, management said it would not provide an outlook for 2009 due to a lack of visibility.We have avoided shares of Garmin since our early June coverage began, when the stock was trading at $51.34. The company has a 4.94% dividend yield, based on Friday's closing stock price of $15.17. The stock has technical support at the $10 to $12 price range. If that fails to hold, we could possibly test the all-time lows of $7 per share. If the company can turn things around, we see overhead resistance at the $22 level. We would remain on the sidelines for now. Garmin is not recommended at this time, holding a Dividend.com Rating of 2.8 out of 5 stars.
Nova Chemical Shares Jump Threefold on Deal News Nova Chemicals (NCX) shares are up threefold this morning after the chemical company said it has agreed to be acquired by International Petroleum Investment for $6 per share, or about $499.2 million. Like the rest of the companies in the chemicals sector, Nova Chemicals has been hurt by slumping prices and a weakening demand for plastics. The company recently announced it was cutting 400 jobs worldwide.
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