Not a bad Valentine’s present. This morning GRMN was going crazy in the pre-market, up over 10%. I put in a sell order at $60, but never got filled. I was a little worried that most of that upside would disappear at the opening but I was wrong. When the bell finally sounded my streaming quotes screen was hypnotizing. Numbers changed almost faster than I could see. After a few minutes of staring I shook myself into action. I put in a 1% trailing stop in order to try and capture a steady move up. No such luck, the bids and asks were just too wild. The stop moved up some then was triggered at $58.68. I could have done better with just a limit order at $59 but I figured it was worth the shot. It wouldn’t be one of my trades if some money was not left on the table. As I am writing this GRMN is around $56-$57 so jumping out at $58.68 doesn’t seem like too bad of a deal. (Looking back I am really happy that I called it quits on SNDK when I did. Freeing up that margin money and rolling it into Garmin has made the SNDK loss back and then some.)
Garmin reported that quarterly earnings doubled and the stock still dropped from today’s high. It seems counterintuitive for it to do so. We still have some time; it wouldn’t surprise me if GRMN got back to that $59 range by the end of the day. If it runs to over $60 tomorrow then I will feel a touch foolish…for a minute. I plan on keeping an eye on the stock. If down the road it drops low enough I will be happy to get back in.
Garmin shares purchased on January 22nd for $49 per. All shares sold February 14th for $58.68. The difference gives a $9.68 profit per share (excluding commissions and margin interest.) $9.68 divided by $49 gives a 19.75% return for a 23 day holding period.
That’s it for today. Here’s to finding another quality trade and to keeping an eye on your EveryDay Money.