Warning issued on Garmin stock, TomTom cuts 7% of workforce

[Darren]

More bad news for the manufacturers with Oracle Research issuing a 'HOLD' warning on Garmin (GRMN) NASDAQ common stock.

Garmin's stock has declined significantly with its current weakness attributable to the weakness of other manufacturers. TomTom's recent Q4 profit warnings issued earlier this week have further increased uncertainty and falling consumer spend is also hampering recovery.

Meanwhile TomTom announced it was cutting 7% of its workforce world-wide as part of a cost cutting programme. This is separate to the reductions already taking place at TeleAtlas. Further information will be provided when the Q4 2008 financial results are announced in late February.
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Darren Griffin

[StuartStrangeboy]

The Garmin stock has been hovering around $16-18 for a few months now but are far less vulnerable than TomTom because Garmin has many other products, also Garmin has no long term debt which is TomTom's main concern and does not make them a good investment.

[Darren]

Very true, Garmin have huge cash reserves whereas TomTom have huge debts. However I wouldn't be too concerned about either business even in this climate as they have a proven track record of profit and both continue to dominate the markets.

Investors will if anything be even keener to invest at the current lower share prices.
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Darren Griffin

[gatorguy6996]

My two biggest concerns going forward. . . Both companies cutting back on support staff and engineers, and in TomTom's case, a need to sell off TeleAtlas.
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Garmin 1695 / 255 / 760 w/MSN - Droid w/Google nav + Navigon - Navigon 8100T - Dakota10 - GPSMap76C - GeoMate Jr.

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