May 05, 2006
The stock is being punished, and my stops are all violated so it is punting time.
I have a feeling this stock will be back in my portfolio but the sales model is just not diversified enough for the perfect storm coming in GPS.
I have talked endlessly with the channel and salespeople and have been concerened that relying on a dealership sales model only is plain stupid.
Any kind of auto slowdown now could see this stock quickly below $15.
Any price that low is an entry point as this company would fit nicely in the portfolio of another GPS company or a diversified giant like GE. To make that bet though, I need to see another 30-40 percent knocked off.