Knock Knock Knock

Son of a Bitch! Guess I didn't knock hard enough in my previous post about Garmin so as I post this I'm knocking the crap out of my coffee table. I've seen my 14% return widdle down to 7% within the last week with Garmin. Merrill Lynch downgraded Garmin to neutral today. Merrill stated increased competition is going to impact Garmins performance and that the stellar sales they're expected to report for the fourth quarter are already included in the stock price.
Although I agree that competition is increasing, and that margins are going to shrink, I don't agree that Garmin is not going to continue to grow like it has. The GPS market is simply exploding right now. All companies in this business are posed to benefit. Garmin has positioned itself to be the leader. As I've mentioned before, it's volatile stock and this is to be expected. It's just a bit painful. If it drops much more, I may be tempted to buy some more :)

On a positive note, Armor Holdings went up 5.5% today (see previous post on that one). IBM (which I haven't posted about, but own quite a bit of stock in) also has been on a tear recently as well. This is why you never put all of your money in one stock. A balanced portfolio helps level things out.