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 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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