Cramer Does Not Like Garmin (GRMN)
Cramer believes that Garmin's (NASDAQ: GRMN) primary business as a manufacturer of GPS devices is on life support as the result of the proliferation of smartphones, many of which have GPS capabilities.
Cramer thinks that the stock is more than likely headed as much as 20% lower. He said that he thinks the big money is betting against the future prospects of Garmin (NASDAQ: GRMN). In today's trading, GRMN climbed 1.63% to $32.42.
This trade is very intuitive, and I agree with Cramer's thesis. Garmin's business model has some major flaws, and they better evolve fast if they are going to continue to compete. Shorting this stock, however, comes with some risk as there is strong momentum in this name. The shares are up 10% in the last 3 months. Garmin also has a very good balance sheet.
