NEW BEARISH Plays

Garmin Ltd. - GRMN - close: 33.61 change: +0.75

Stop Loss: 35.05
Target(s): 30.25
Current Gain/Loss: +0.0%

Entry on March 20 at $--.--
Listed on March 19, 2013
Time Frame: 6 to 8 weeks
Average Daily Volume = 1.5 million
New Positions: Yes, see below

Company Description

Why We Like It:
Garmin is having a tough time with so much competition in the GPS technology industry. Personally, I haven't touched my Garmin in years because using my smartphone is so much easier. The company recently said sales were going to get worse when they issued an earnings warning in late February. The stock did manage an oversold bounce but that failed near resistance at the bottom of the gap down. Today GRMN is breaking down to new 52-week lows. Shares look like they are headed for what might be support near $30.00.

I am suggesting new bearish positions now at current levels. Our target is $30.25.

Suggested Position: short GRMN stock @ (the open)

- (or for more adventurous traders, try this option) -

buy the Apr $33 PUT (GRMN1320P33) current ask $0.68

Annotated chart:

Weekly chart: