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Garmin (GRMN) manufactures, markets and distributes Global Positioning System (GPS) enabled products and other related products. They had their ipo in December of 2000 and just recently broke out of the trading range that the stock has been in since the ipo. They have accelerating eps and sales, a ROE of 28% and no debt. The perception is that the market is limited. Just how many airplanes are there to retrofit? Airplanes are not the only market however. For example, GRMN has a partnership with Timex selling GPS watches where the receiver is strapped to the arm. This opens the market to every runner that wishes to measure their performance. It’s not about finding your exact location anymore. They sell receivers for the OEM market as well. There are geocaching groups popping up all over that use GPS’s to play games. Trimble navigation has sewn up the market for high precision survey GPS’s. However, it is not imperative to know your exact location within centimeters to find a street while driving. Does anyone have opinions on the competition? Is Magellan an issue?
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