Stock to Sell #4 – Garmin Ltd. (GRMN)
Garmin Ltd. (NASDAQ:GRMN) provides navigation, communication and information devices for aviation, marine, automotive and recreation markets. Increased competition from free mobile GPS from Google (NASDAQ:GOOG) and others and a slow-growing economy have put pressure on Garmin’s operating EPS, which is expected to decline in 2013.
Insider selling has increased, and technically, the stock is consolidating under a double-top at $43. MACD is oversold, but new sellers have appeared, and therefore, the chance of a break below the support line at $35-$36 has increased.
A breakdown would most likely trigger a sell-off with an objective of $27 to $28. Sell on a close under $36.
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