As PC prices began to fall, Apple Computer's stock began to soar. Why? Because consumerç—´ were fixated with the Ipod. Now that competitors are entering the market, Apple's market share may begin to dwindle.
So, what is the latest craze to garner consumerç—´ attention? The answer is simple, GPS (Global Positioning Systems) devices that helps people get where the want to go without opening a map or asking for directions.
The lead sled dog in this latest craze is Garmin (GRMN- $99.02).
Garmin makes navigation products using GPS technology that allows drivers, hikers, and even cell phone users get from point A to point B with a touch of a button. Consumers are fascinated with the ability to know where they are and where they are going with the use of GPS electronic maps and navigational charts.-See Website
Garminç—´ technology has been available for quite some time for boating and aviation, but now consumers can use the technology in their every day lives.
Unlike flat panel screen TV's, Garmin's GPS devices come in various price ranges and are affordable for the average consumer.
At almost $100/ share, the stock is not cheap. It currently trades at a P/E ratio of 30, but in its last earnings report the company earned .80 cents a share, with sales of $322 million, up 67%.
Ideally, we would like to buy the stock in the IA portfolio with a buy limit of $95. The company's next earnings report is scheduled to be released on August 2nd (Yahoo Finance). We will be patient and see if we can get the stock to come to us.
If you were wondering where the next big thing was, I believe Garmin may be it.
