NVT at 57.19$ per share. Navteq corp currently shares a duopoly with a company called Tele Atlas which got bought earlier this summer. Navteq supplies the maps to GPS systems and has now moved into suppling maps to next gen cell phones which is really driving growth. They also supply maps to google earth, Yahoo Maps and Map quest. GPS systems will come down in price as they are becoming more popular, but that is a good thing for NVT because they can charge the same amount or more for their maps. They also own traffic.com. I like to think that NVT is to Garmin as Microsoft was to Dell.
What's the catch? It's not cheap on a P/E basis trading at 40 times last years earnings and a projected 30x next years. However the last 2 quarters NVT has blown away estimates and I feel they should continue to do so. I feel as thogh NVT has a slight chance of being bought out by Garmin, Google, or even Microsoft. This is a high p/e stock and if the overall market gets hit, high p/e's are usually the first to fall and fall the hardest. My timeframe on this position is at least 5 years unless they start missing earnings, then I will take my loss and move on.
I feel as though this is a special company and could reap huge rewards if the GPS market continues to grow at the blistering pace it has for the past 5 years.
What's the catch? It's not cheap on a P/E basis trading at 40 times last years earnings and a projected 30x next years. However the last 2 quarters NVT has blown away estimates and I feel they should continue to do so. I feel as thogh NVT has a slight chance of being bought out by Garmin, Google, or even Microsoft. This is a high p/e stock and if the overall market gets hit, high p/e's are usually the first to fall and fall the hardest. My timeframe on this position is at least 5 years unless they start missing earnings, then I will take my loss and move on.
I feel as though this is a special company and could reap huge rewards if the GPS market continues to grow at the blistering pace it has for the past 5 years.
