Garmin Trying to Find Its Way After Pulling 2009 Guidance
(GRMN - Get Report)
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
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.