Filed under: Analyst reports, Bad news, Options, Technical Analysis, S and P 500, Garmin Ltd (GRMN), Recession
Garmin Ltd. (NASDAQ: GRMN) stock is falling after JP Morgan cut its 2008 U.S. GDP growth estimate, S&P 500 target and earnings for S&P 500 companies, after the firm’s chief economist said he believes a recession began in January. Though GRMN is not a member of the S&P 500, this is a bad sign, as the index is a good indicator for the broader market and lower GDP probably means few people interested in buying Garmin’s pricey offerings. If you think this stock won’t be rising too far in the coming months, then it could be a good time to look at a bearish hedged play on GRMN.
After hitting a one-year low of $52.11 last March, the stock hit a one-year high of $125.68 in October. This morning, GRMN opened at $54.63. So far today the stock has hit a low of $53.31 and a high of $54.95. As of 12:25, GRMN is trading at $54.03, down $1.11 (-2.0%). The chart for GRMN looks bearish and steady, while S&P gives the stock a very positive 5 STARS (out of 5) strong buy rating.
Continue reading Garmin (GRMN) falls on recession warnings
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