Transactions: GRMN, LOW, RIG, and HP
Aug 4th, 2008 by Admin
On July 29, we purchased:
- 15.372 additional shares of Garmin Ltd. (GRMN) at $45.34
- 39.416 additional shares of Lowe’s Companies Inc (LOW) at $20.22
- 11.974 initial shares of Transocean Inc. (RIG) at $133.62
We sold 27 shares of Helmerich & Payne Inc (HP), a gas and drilling company, at $57.27 reducing the weight of this holding to 2.9%. Transocean, a deep sea oil and gas drilling company,
On July 30, we purchased an additional 15.682 shares of Garmin at $39.250. Garmin took quite a beating last week when it reduced its 2008 earnings guidance from $4.40 to $4.13 per share. Garmin also reduced its revenue guidance from $4.5 billion to $3.9 billion. It appears that the bad news is more than reflected in the current stock price of $33.64.
A stock selection guide (SSG) for Garmin can be found here. This SSG assumes a reduced revenue growth of 12% and a reduced pre-tax profit marin in five years. The SSG assumes a future P/E of 15 (current P/E is 8). The projected average return is 23.1%.
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