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					                                                Garmin, Ltd. (GRMN)

                                Selection Criteria
                                The selection of this stock was chosen on the recommendation of
                                liquidating the funds 200 shares of Intel stock and selecting another
                                stock within the technology sector. From this sector, mid and large
  Investment Recommendation:    cap stocks considered to be a value play, solid financials, consistent
                                earnings with a beta no higher than 1.5. Considering stocks within
                Buy             the technology industry are more growth than value plays, the focus
                                of consistent earnings and solid financials drove the selection
     Target Price: $49.00       criteria. Garmin was selected with its solid profit margins,
     Shares to purchase: 50     significant revenue growth, strong brand name and experienced
                                management. Positive press and an incentive for growth possibility
Pricing:                        also attributed to the selection of this stock.
Closing Price    $48.94
(10/20/06)                      Company Profile1
52 Week High     $54.75         Garmin, Ltd., with its subsidiaries, engages in the design,
                                manufacture, and marketing of navigation, communications, and
52 Week Low      $26.99         information products, which are enabled by global positioning
                                system (GPS) technology worldwide. It operates in two segments,
                                Consumer and Aviation. The Consumer segment offers a range of
Profitability & Effectiveness   consumer products, including automotive navigation devices,
                                handheld GPS receivers, two-way radios with integrated GPS
ROA (TTM)             18.07%    receivers, GPS-enabled portable digital assistants, GPS-enabled
ROE (TTM)             34.13%    training assistants for athletic activities, and fixed-mount
Profit Margin         30.21%    GPS/Sounder products. The Aviation segment provides panel-
(TTM)                           mounted product line that includes GPS-enabled navigation, very
Operating Margin      31.54%    high frequency (VHF) communications transmitters/receivers,
(TTM)                           multifunction displays, traditional VHF navigation receivers,
Quarterly Earnings    66.20%    instrument landing system receivers, digital transponders, marker
Growth (YOY)                    beacon receivers, and audio panels. The company also develops
                                Web-based applications for GPS devices. It sells its products to
Market Data                     retail outlets and aircraft manufacturers through a network of
                                approximately 3000 independent dealers and distributors in
Total Assets      1.362B        approximately 100 countries. Garmin’s products are used in the
Market Cap        11.00B        aviation, marine, general recreation, land, automotive, wireless, and
Avg. Vol.         3.378M        original equipment manufacturer applications. The company was
EPS (ttm)         $1.83         founded in 1990 and is based in Grand Cayman, Cayman Islands.
P/E (ttm)         27.66
                                Having built and sold millions of GPS receivers, Garmin has a
                                diverse product line with distributors worldwide. The company's
Equity Limit Prices             immediate success has resulted from developing innovative
                                products for a variety of markets; the long-term success of the
Stop Loss         $38.18        company is based on their commitment to support customers after
Take Profits      $75.00        the sale. Their products are sold for a variety of uses, including
                                navigation systems for military applications and hand-held
                                blackberry devices.

Ryan M. Rossiter
rmr89f@mizzou.edu
                                                                                          1
Economic & Industry Environment
Entering the third quarter, there is a foreboding sense in the market as the indices faltered
in the previous quarter on concerns that the Fed went to far with its tightening of interest
rates provoking a hard economic landing. But with major gains being made in the market
currently, equity investing seems to be a major play as the Dow is setting new all-time
highs while each of the major indices are registering impressive gains.

Many analysts are forecasting that the Fed will not be issuing another rate hike this year,
but the market may be underestimating the risk of another rate hike. The Fed reported
stronger growth in consumer spending across the board in lieu of modest job and wage
growth but noted weaker than normal sales for both the automotive industry and the
slowly eroding housing market. Solid consumer spending is beneficial for Garmin as well
as being a lead indicator for future potential growth in sales for this company. EPS
performance in the technology sector for the third quarter has been a welcomed surprise
to investors as well with reported growth of 0.25% and estimated growth of 0.13% for the
                                       2
third and fourth quarter respectively.

Market position & Competitors
Garmin is an innovator in personal GPS devices with nearly 50% market share in this
area and also develops navigation software that is sold as a stand-alone product and also
accompanies the devices that are sold. Recently this software became available to
blackberry users, which has become a major breakthrough for the industry as this is the
first time mapping information can be transmitted rather than stored on the hardware. In
2005 alone, Garmin introduced 70 new products including products with Bluetooth
capability with laptops and cellular phones. Analyst estimate 1.3 million GPS enabled
navigation devices to be sold this year with the number of units sold increasing
dramatically as more companies add GPS technology to their devices.

This has led to a number of companies entering the GPS devices fray over the past few
years such as Rand McNally, Dash Navigation, Lowrance Electronics, Magellan
Electronics, Tom Tom and Trimble Navigation (TRMB). Of these competitors, only one
of them is a publicly held company. This makes valuation comparison difficult, but
looking at revenue and net income for these privately held companies’ gives a pseudo-
comparison of relative performance compared to Garmin.
                                                                                                Net
                                                               Price
                                                                                               Profit
                                                Market     P/E  to     Revenue   Net Income
                                                                                              Margin
                                                 Cap     (TTM) Book     (TTM)      (TTM)
                                                                                                %
                                                               Value
                                                                                              (MRQ)

Sector: Technology                             5668.9B 28.08 6.08       N/A        N/A        10.72

Industry: Scientific & Technical Instruments   167.21M 23.65 5.1 70.58M           893K         8.0
                                           Companies
Garmin, Ltd. (GRMN)                            10.62B 26.7 8.39 1.33B 400.42M 30.21
Trimble Navigation (TRMB)                       2.46B 26.13 4.05 846.48M 97.96M 11.57
Lowrance Electronics (private)                  N/A      N/A N/A        N/A        N/A        N/A
Magellan Electronics (private)                  N/A      N/A N/A        N/A        N/A        N/A
Tom Tom (private)                               N/A      N/A N/A 262.5M          39.8M        N/A
Rand McNally (private)                          N/A      N/A N/A 644.2M          42.2M        N/A
                                                                                                 2
In comparison to the company’s competitors, Garmin has a vastly superior position in the
personal navigation products division. Garmin produces five of the top six most popular
navigation products that are sold in the United States, which positions them well to
                                                             3
capitalize on market-share gains in both the US and Europe. The European market is of
particular interest as the company only has 16.7% market share. The company’s
encroachment on the European market has made waves this year as Garmin filed a patent
infringement against its main competitor in Europe, Tom Tom, this past February over
proprietary software designed to help drivers navigate routes. Tom Tom countersued
Garmin with infringement claims similar to Garmin’s claim. Both companies again filed
a round of patient claims against one another later in August that pertained to the “look
                                     4
and feel” of the navigation devices. This legal battle does not seem to have much
credence, but rather a case of one-upmanship as both companies battle each other for
market share in Europe. Currently these cases are pending in multiple European courts.

Garmin is a leading innovator in the area of personal navigation devices; this gives them
a competitive advantage over their competitors who may threaten to take sales away from
the company. Garmin saw a 209% year-to-date sales growth of personal navigation
devices in August alone, due in part to their status as an innovator coupled with a strong
brand name.

When compared to other companies in the scientific & technical instruments industry,
Garmin ranks in the top quarter percentile in almost every category listed below and is
the leader in those categories when compared to companies who produce GPS navigation
devices.

              Statistic                  Industry      Leader       Garmin          GRMN
                                                                                     Rank
Market Cap                                  A          14.27B       10.62B           2/119
P/E Ratio (TTM)                          SPWR          486.15         26.7          22/119
PEG Ratio (TTM, 5yr expected)             IMA            4.37         1.36          27/119
Revenue Growth (Qtrly YoY)               SPWR          233.5%        63.5%          12/119
EPS Growth (Qtrly YoY)                   CYBE          831.6%        65.4%          16/119
Long-Term Growth Rate (5yr)                IO           72.5%        18.0%          29/119
Return on Equity (TTM)                    WAT          50.21%       34.13%           4/119
Long-Term Debt/Equity (MRQ)               WAT           3.442         N/A             N/A
Dividend Yield (Annual)                 SCND.OB          6.4%        1.00%          14/119
                                                                        source: finance.yahoo.com




Analysts Estimates
Current analyst recommendations for this stock seem to be constant, many of which
recommend a hold. This recommendation is due in part to strong third quarter estimates
and attractive valuation for the remainder of the year.




                                                                                               3
                                         Current    1 Mo. Ago        3 Mo. Ago
                     Buy                   3            2                1

                     Overweight             2            2                 0

                     Hold                   7            6                 9

                     Underweight            0            0                 0

                     Sell                   2            2                 1

                     Mean                HOLD         HOLD             HOLD
                                                                source: the street.com




The target price analysts are setting for this stock is close to the recommendation for this
analysis, $50.00. Garmin is likely to raise 3Q 06 guidance and expects overall revenue to
exceed $1.6 billion and EPS to exceed $3.90 for the fiscal year 2006, $0.1 billion and
$0.23 over analyst expectations respectively. Analysts are basing this on the company’s
sustained leadership position and strength in the personal navigation devices. Analysts’
recommendations should rotate to buy recommendations if the company does raise 3Q
guidance before the 3Q earning report is released November 1, 2006.

Valuation Ratios5 (Industry: Scientific & Technical Instruments Sector: Technology)

Valuation Ratios                       Company        Industry      Sector        S&P 500
P/E Ratio (TTM)                          26.70          25.72       29.26           20.55
P/E High (Last 5 years)                  35.89          52.17       60.97           37.46
P/E Low (Last 5 years)                   15.09          16.31       18.56           14.37
Beta                                      1.14           2.11        1.75            1.00
Price to Sales (TTM)                      8.01           4.78        5.04            2.87
Price to Book (MRQ)                       8.32           4.35        5.43            3.82
Price to Tangible Book (MRQ)              8.34           4.86        7.52            7.05
Price to Cash Flow (TTM)                 23.79          23.39       23.60           15.05
Price to Free Cash Flow (TTM)            42.28          38.92       29.22           30.13
% Owned Institutions                     33.12          49.48       49.86           66.24

       Dividends
Dividends                              Company        Industry Sector             S&P 500
Dividend Yield                           0.51%         1.08%   1.22%               2.11%
Dividend Yield (5yr average)             0.01%         0.42%   0.70%               1.81%
Dividend 5 Year Growth Rate             11.51%        -40.16% 0.87%                9.82%
Payout Ratio (TTM)                        N/A           10.39   9.89                28.00




                                                                                            4
          Growth Rates
Growth Rates (%)                 Company   Industry   Sector   S&P 500
Sales (MRQ) vs. Qrt 1 Yr Ago      63.51     24.51     22.25     16.76
Sales (TTM) vs. TTM 1 Yr Ago      52.05     23.00     18.37     16.91
Sales-5 Yr Growth Rate            24.35      6.07      9.36      9.53
EPS (MRQ) vs. Qrt 1 Yr Ago        65.37     17.57      9.42     14.00
EPS (TTM) vs. TTM 1 Yr. Ago       69.30     18.17     18.60     22.00
EPS-5 Yr Growth Rate              22.09     16.25     16.96     14.55
Capital Spending- 5 Yr Growth      1.79      -1.27     5.91      6.04

          Financial Strength
Financial Strength               Company   Industry   Sector   S&P 500
Quick Ratio (MRQ)                  2.13      2.83      2.53      1.22
Current Ratio (MRQ)                2.74      3.41      3.00      1.74
LT Debt to Equity (MRQ)            0.00      0.48      0.22      0.55
Total Debt to Equity (MRQ)         0.00      0.51      0.26      0.80
Interest Coverage (TTM)            N/A      15.30     13.73     14.97

          Profitability Ratios
Profitability Ratios             Company   Industry   Sector   S&P 500
Gross Margin (TTM)                50.62     46.72     53.13     45.19
Gross Margin- 5 Yr Avg            54.11     42.19     51.55     45.15
EBITD Margin (TTM)                35.01     17.99     21.22     22.50
EBITD- 5 Yr Avg                   39.71      3.98     16.47     20.87
Operating Margin (TTM)            31.54     16.17     18.23     20.28
Operating Margin- 5 Yr Avg        35.80      0.70     12.60     19.10
Pre Tax Margin (TTM)              35.55     18.96     20.23     18.75
Pre Tax Margin- 5 Yr Avg          37.17      0.04     13.55     17.18
Net Profit Margin (TTM)           30.21     13.24     14.54     13.60
Net Profit Margin- 5 Yr Avg       29.77      -4.52     8.46     11.64
Effective Tax Rate (TTM)          15.02     31.81     28.16     30.26
Effective Tax Rate- 5 Yr Avg      19.92     30.31     29.20     31.86

           Management Effectiveness
Management Effectiveness         Company   Industry   Sector   S&P 500
Return on Assets ROA (TTM)         27.70     8.49     10.89      8.18
ROA-5 Yr Avg                       23.04     -2.12     6.34      6.50
Return on Investments ROI (TTM)    33.89    11.41     14.94     12.17
ROI- 5 Yr Avg                      26.50     -2.05     9.10     10.06
Return on Equity ROE (TTM)         34.13    15.89     19.10     20.11
ROE- 5 Yr Avg                      27.17     -1.51    12.37     18.01

         Efficiency
Efficiency                       Company   Industry   Sector   S&P 500
Net Income/Employee (TTM)        132,154   109,593    96,863   113,758
Receivable Turnover (TTM)          5.88      8.02       7.95    10.55
Inventory Turnover (TTM)           3.37      8.04      12.38    12.62
Asset Turnover (TTM)               0.92      0.76       0.86     0.98

                                                                         5
Garmin’s financials are strong absolute compared to both competitors in its industry and
other companies in the market. They exemplify strong margins, little to no debt and
strong financial ratios; the only ratio that may be lacking when recommending a stock for
the Mizzou Investment Fund is the lower than average dividend yield compared to
current stocks the fund holds. As stated before, analysts are expecting the company to
raise the dividend yield with the release of 3Q 06 earnings report. Besides issuing a
dividend, Garmin’s Board of Directors approved a share repurchase program in August
                                                                                   6
authorizing the company to purchase up to 1.5 million common shares of GRMN.
Garmin shareholders also approved a two-for-one stock split of the company’s common
                                                    7
stock at their shareholder meeting July 21, 2006. The stock split date record date was
     nd                                      th
the 2 of August and was effective the 15 of August. The board of Directors also
approved a post-stock split annual cash dividend of $0.50 per share payable to
                                       7
shareholders on December 1, 2006.

Stock Performance




                 Garmin: GRMN, Trimble Navigation: TRMB, S&P 500: GSPC




       Garmin: GRMN, Dow Jones Industrial Average: DJI, Nasdaq: IXIC, S&P 500: GSPC

                                                                                        6
As stated before, this analysis is looking to replace the funds currently utilized by Intel
(INTC) in the Mizzou Investment Fund. With the current price war Intel is engaged in
with AMD, this analysis believes that significant gains are not possible until this price
war has ended. For any gains to be made in the fund another stock with stronger
financials and more aggressive growth opportunities must be selected; Garmin, Ltd fits
this criteria. Below is the performance of Intel vs. Garmin from the day that the fund
purchased the 200 shares of Intel with the S&P 500 added as a base comparison.




The recommendation to sell Intel also helps to resist the institutional imperative of
holding on to losing stocks and selling winners.

Valuation
Using the Constant Growth Dividend Discount Model (DDM), if we assume the 10-year
Treasury note to be our risk free rate (4.784%), a beta of 1.14 and assume the historical
return on the market to be 11%, we can find the appropriate discount rate (k) to use in our
valuation:
k= 4.784 + 1.14 (11-4.784)
k= 11.87024
       We can now forecast a dividend payout ratio of 68.31% by taking the estimated
dividend payout for this year, $1.25, and the estimated EPS of 1.83. This, along with the
ROE should yield a good estimate for dividend growth rate g:
g= ROE x b
g= 34.13 x (1-.6831)=10.817158

       Incorporating these values into the DDM valuation, we can determine an
estimated intrinsic value:
intrinsic value=(1.25 (1 +.10817158))/(.1187024-.10817158)
intrinsic value= $131.54




                                                                                              7
Now using the Owner Earnings Discount model, I estimated several discount rates for
this model to vary the different risk associated with today’s economy and future
expectations along with several growth percentages Intel is likely to encounter based on
the analysis presented in this paper. Using these estimates I determined an estimated
intrinsic value of $53.88.
assuming discount rate (k) of                          11.87%

Owner Earnings in 2005:
Net Income                                  $311.21
Depreciation                                $43.60
Amortization                                $24.34
Capital Expenditures                        $(27.13)
Owner Earnings                              $352.02

                                                2005        2006     2007     2008      2009
Prior Year Owner Earnings                   $352.0        $404.8   $465.5   $535.4    $615.7
First Stage Growth Rate (add)               15.0%         15.0%    15.0%    15.0%    15.0%
Owner Earnings                              $404.8        $465.5   $535.4   $615.7   $708.0
Discounted Value per annum                  $404.8        $416.1   $427.8   $439.8   $452.1

   2010          2011         2012        2013         2014
$708.0        $814.2       $936.4      $1,076.8     $1,238.3
15.0%         15.0%        15.0%       15.0%        15.0%
$814.2        $936.4       $1,076.8    $1,238.3     $1,424.1
$464.7        $477.7       $491.1      $504.8       $518.9

Sum of present value of owner earnings              $4,597.8

Residual Value
Owner Earnings in year 10                   $1,424.1
Second Stage Growth Rate (g) (add)          5.00%
Owner Earnings in year 11                   $1,495.3
Capitalization rate (k-g)                   6.87%
Value at end of year 10                     $21,764.98

Present Value of Residual                          $7,089.45
Intrinsic Value of Company                        $11,687.23

Shares outstanding assuming dilution                   216.92
Intrinsic Value per share                              $53.88

The different intrinsic values can be attributed to the estimates the models use, where the
constant DDM model uses an estimated EPS that Garmin is likely to gain and a beta ratio
that is also an estimate of how risky this stock is to the market. The Owner’s Earning’s
model is a more conservative estimate of how the stock will perform based on estimated
first and second stage growth models. As stated before, it is plausible to estimate higher
than average growth rates for this company.




                                                                                          8
Conclusion
                         Pro                              Con
            Product Innovator                 High P/E
            High Growth Potential             Hold estimates from Analyst
            Strong Financials                 High insider trading sales
            50% Market Share for PND          Pending Litigation
            Strong Brand Name                 Low dividend yield




Overall, Garmin is a solid company and a leader within its market due to both product
innovation and strong brand name. Although many analysts believe that this stock should
be a hold, I believe that GRMN will fit well within the parameters set for the Mizzou
Investment fund. With estimated growth for the company and applications for GPS
devices, there is still plenty of room for this stock to appreciate. For example, Hyundai
car manufacturer recently started selling the nuvi 360 personal navigation device in their
cars. This application should be a great indicator as to the growth of the PND, similar to
power windows, CD players and other upgrades the car industry has seen over the last 25
years. Although this stock has a low dividend yield, this should not be a deterrent to
purchase this share. As stated before, Garmin has repurchased existing shares to add
shareholder value to the stock as well as issuing a stock split earlier this year. I
recommend selling the existing shares (200) of Intel and purchasing 50 shares of Garmin,
Ltd. with the funds from the Intel sale.




                                                                                        9
Income Statement
In Millions of USD (except for    13 weeks   13 weeks   14 weeks   13 weeks   13 weeks
per share items)                    Ending     Ending     Ending     Ending     Ending
                                 2006-07-01 2006-04-01 2005-12-31 2005-09-24 2005-06-25
Revenue                             432.47     322.31     319.30     251.33     264.50
Other Revenue, Total                      -          -          -          -          -
Total Revenue                       432.47     322.31     319.30     251.33     264.50

Cost of Revenue, Total              216.18     159.52     156.86     121.88     124.52
Gross Profit                        216.28     162.79     162.44     129.45     139.98

Selling/General/Admin.
                                     54.91      37.76      44.23      24.18      33.09
Expenses, Total
Research & Development               26.79      24.91      20.02      20.12      17.82
Depreciation/Amortization                -          -          -          -          -
Interest Expense(Income) - Net
                                         -          -          -          -          -
Operating
Unusual Expense (Income)                 -          -          -          -          -
Other Operating Expenses,
                                         -          -          -          -          -
Total
Total Operating Expense             297.89     222.20     221.10     166.17     175.43

Operating Income                    134.58     100.11      98.19      85.16      89.07

Interest Income(Expense), Net
                                      8.53       7.30      11.19          -       4.45
Non-Operating
Gain (Loss) on Sale of Assets            -          -          -          -          -
Other, Net                            2.79      -3.84     -13.77      40.97      -1.46
Income Before Tax                   145.90     103.57      95.61     126.13      92.05

Income After Tax                    123.29      87.52      87.13     102.49      74.19

 Minority Interest                       -          -          -          -          -
 Equity In Affiliates                    -          -          -          -          -
 Net Income Before Extra.
                                    123.29      87.52      87.13     102.49      74.19
Items

Accounting Change                        -          -          -          -          -
Discontinued Operations                  -          -          -          -          -
Extraordinary Item                       -          -          -          -          -
Net Income                          123.29      87.52      87.13     102.49      74.19

Preferred Dividends                      -          -          -          -          -
Income Available to Common
                                    123.29      87.52      87.13     102.49      74.19
Excl. Extra Items

 Income Available to Common
                                    123.29      87.52      87.13     102.49      74.19
Incl. Extra Items

Basic Weighted Average
                                         -          -          -          -          -
Shares
Basic EPS Excluding
                                         -          -          -          -          -
Extraordinary Items
Basic EPS Including
                                         -          -          -          -          -
Extraordinary Items

Dilution Adjustment                      -          -       0.00       0.00          -

                                                                                     10
Diluted Weighted Average
                                      219.34       218.32         217.96     217.86     218.29
Shares
Diluted EPS Excluding
                                        0.56          0.40          0.40       0.47       0.34
Extraordinary Items

Diluted EPS Including
                                           -             -             -           -          -
Extraordinary Items

 Dividends per Share - Common
                                           -          0.00          0.00       0.25       0.00
Stock Primary Issue
 Gross Dividends - Common
                                           -             -             -           -          -
Stock
 Net Income after Stock Based
                                           -             -             -           -          -
Comp. Expense
 Basic EPS after Stock Based
                                           -             -             -           -          -
Comp. Expsense
 Diluted EPS after Stock Based
                                           -             -             -           -          -
Comp. Expense
 Depreciation, Supplemental                -             -             -           -          -
 Total Special Items                       -             -             -           -          -
 Normalized Income Before
                                           -             -             -           -          -
Taxes
 Effect of Special Items on
                                           -             -             -           -          -
Income Taxes
 Income Taxes Ex. Impact of
                                           -             -             -           -          -
Special Items
 Normalized Income After
                                           -             -             -           -          -
Taxes
 Normalized Income Avail to
                                           -             -             -           -          -
Common
 Basic Normalized EPS                      -             -             -          -           -
 Diluted Normalized EPS                 0.56          0.40          0.40       0.47        0.34


Balance Sheet
In Millions of USD (except for           As of      As of      As of      As of      As of
per share items)                    2006-07-01 2006-04-01 2005-12-31 2005-09-24 2005-06-25
 Cash & Equivalents                    373.94     314.62     334.35     331.25     300.23
 Short Term Investments                 46.80      46.25      32.05      36.05      42.47
 Cash and Short Term
                                       420.75       360.87        366.40     367.29     342.70
Investments
 Accounts Receivable - Trade,
                                       295.80       200.25        171.00     151.78     154.70
Net
 Receivables - Other                        -            -             -          -          -
 Total Receivables, Net                295.80       200.25        171.00     151.78     154.70
 Total Inventory                       227.91       200.25        199.84     173.20     160.33
 Prepaid Expenses                       34.36        46.36         34.31      17.83      19.27
 Other Current Assets, Total            45.05        36.72         29.61      47.62      42.31
 Total Current Assets                1,023.86       844.46        801.17     757.72     719.31

Property/Plant/Equipment, Total -
                                               -             -          -          -          -
Gross
Goodwill, Net                               -             -             -          -          -
Intangibles, Net                         3.84          5.10          6.52          -      36.72
Long Term Investments                  408.14        402.42        344.67     333.61     291.99
Other Long Term Assets, Total           30.63         30.70         30.70      36.33       1.44
Total Assets                         1,661.86      1,471.50      1,362.23   1,304.73   1,229.22

Accounts Payable                        89.64        68.81         76.52      50.21      51.12
Accrued Expenses                       112.32        59.40         55.81      54.24      48.21
Notes Payable/Short Term Debt            0.00         0.00          0.00       0.00       0.00

                                                                                              11
 Current Port. of LT Debt/Capital
                                            -             -                -            -          -
Leases
 Other Current liabilities, Total      171.69        68.88             63.15      117.74      54.96
 Total Current Liabilities             373.64       197.08            195.49      222.19     154.29

Long Term Debt                              -             -                -           -           -
Capital Lease Obligations                   -             -                -           -           -
Total Long Term Debt                     0.00          0.00             0.00        0.00        0.00

Total Debt                               0.00          0.00             0.00        0.00        0.00

Deferred Income Tax                     11.35         9.73              9.49       14.10       5.10
Minority Interest                           -            -                 -           -          -
Other Liabilities, Total                    -            -                 -           -          -
Total Liabilities                      384.99       206.81            204.97      236.29     159.39

Redeemable Preferred Stock,
                                            -             -                -            -          -
Total
Preferred Stock - Non
                                            -             -                -            -          -
Redeemable, Net
Common Stock, Total                      1.08         1.08              1.08        1.08       1.08
Additional Paid-In Capital             117.47       109.78             96.24       88.95     100.33
Retained Earnings (Accumulated
                                     1,174.87      1,159.97      1,072.45         985.29     936.80
Deficit)
Treasury Stock - Common                     -             -             -              -           -
Other Equity, Total                    -16.55         -6.15        -12.51          -6.89       31.62
Total Equity                         1,276.87      1,264.69      1,157.26       1,068.43    1,069.83

Total Liabilities &
                                     1,661.86      1,471.50      1,362.23       1,304.73    1,229.22
Shareholders' Equity

Shares Outs - Common Stock
                                            -             -                -            -          -
Primary Issue
Total Common Shares
                                       216.91       216.68            216.13      216.65     216.12
Outstanding



Cash Flow Statement
In Millions of USD (except for         13 weeks        13 weeks            14 weeks        13 weeks
per share items)                    Ending 2006-    Ending 2006-        Ending 2005-    Ending 2005-
                                           07-01           04-01               12-31           09-24
Net Income/Starting Line                 123.28            87.52               87.13         102.49
Depreciation/Depletion                      5.16            5.05                4.99            4.89
Amortization                                8.13            8.92                4.47            4.30
Deferred Taxes                             -5.75           -7.72                9.21            3.71
Non-Cash Items                             -0.92           14.32                0.30          -29.06
Changes in Working Capital                -53.75          -51.87              -34.43           -0.40
Cash from Operating
                                          76.16               56.22            71.66          85.94
Activities

 Capital Expenditures                     -12.18          -15.55                -6.22          -4.91
 Other Investing Cash Flow
                                          -10.12          -71.62               -14.01         -35.98
Items, Total
 Cash from Investing
                                          -22.30          -87.17               -20.22         -40.89
Activities

Financing Cash Flow Items                      -                  -                -               -
Total Cash Dividends Paid                      -                  -                -               -
Issuance (Retirement) of Stock,            -1.56              11.04             5.45          -12.91

                                                                                                   12
Net
Issuance (Retirement) of Debt,
                                       -             -             -            -
Net
Cash from Financing
                                    5.42         11.04        -48.52       -12.91
Activities

Foreign Exchange Effects            0.03          0.18         0.19         -1.12
Net Change in Cash                 59.32        -19.73         3.11         31.01

Cash Interest Paid,
                                       -             -             -            -
Supplemental
Cash Taxes Paid,
                                       -             -        55.18             -
Supplemental




Work Cited
1 yahoo finance
2 http://www.zacks.com/newsroom/commentary/index.php?id=3805
3 http://www.thestreet.com/_yahoo/newsanalysis/investing/10314190_4.html
4 http://www.engadget.com/2006/10/16/tomtom-sues-garmin-but-surprisingly-not-for-
patent-infringement/
5 http://www.investor.reuters.wallst.com/stocks/Ratios.asp?rpc=66&ticker=GRMN.O
6 http://today.reuters.com/stocks/KeyDevelopments.aspx?symbol=GRMN.O
7
http://www.netstumbler.com/newswire/2006/08/01/garmin_reports_record_quarter_revis
es_annual_guidance_upward/




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