Saturday, May 9, 2009


I decided to do a milder version of the high short interest and insider buying stock screen. instead of >20% short interest I lowered it to >10%. this yielded 9 results. Garmin, the GPS device company has the largest market cap of the nine, so I thought I'd take a quick look at it.

back when shares were trading in the 100+ range insiders were selling like crazy. but Friday, a director by the name of Thomas McDonnell bought 20,000 shares. this right after the stock dropped sharply on worse than expected earnings.

GRMN is selling for about 10x forward earnings. that sounds about right, as long as the company can meet expectations next time around. I haven't a clue whether that will be the case, but apparently this McDonnell guy has at least a little confidence.

now 20,000 shares is a drop in the bucket compared to all the selling the CEO and others did back in 2007. if some more insiders purchase shares here or on more weakness then I would more excited about GRMN. so we'll put it on our watch list.