24/7 Wall St.

On tonight’s MAD MONEY on CNBC, Jim Cramer wanted to look at what actually works in a major credit crunch.  His situation that worked back in 1990 in food, drug, and soft goods work now, but he’s been covering that already.  The other area he likes: HIGH GROWTH.

Garmin (NASDAQ:GRMN) is a phenomenal high-growth story equal to the trends seen in Under Armour (NYSE:UA) and Crocs (NASDAQ:CROX).  Here’s what he likes about it:  It is the leader in global positioning that is trading under its growth rate.  He really liked the beat they gave with earnings last quarter and the raised guidance.  Shares are down 14% because of the market sell-off and it is still above where it was when it reported.  If shares get much weaker he thinks it’s a gift.  He thinks that it is a cheap growth stock that if he uses the highest estimate from Merrill Lynch that this can hit $116.00.

Cramer even brought on Garmin’s CFO for a telephone interview.  The CFO, Kevin Rauckman, said the company was even surprised with the margins.  The pricing pressures they anticipated haven’t yet surfaced.  As far as manufacturing capacity, they bought a third factory in Taiwan so it can keep doing its own manufacturing and is now in great supply-side shape the rest of the year.  Navigation is still strong and they haven’t seen a pinch from the weaking consumer yet. 

Cramer: Will you have enough product for Christmas?   Rauckman, CFO: "Absolutely….."

If you like the navigation sector, here is what we gave for the sector wrap-up when these companies all reported earnings within the same 24-hour period and here was the preview for the group.  NAVTEQ (NYSE:NVT) and Trimble Navigation (NASDAQ:TRMB) are the two other leaders out of the GPS sector, and SiRF Tech (NASDAQ:SIRF) is the one that makes many of the chipsets and software systems for mobile communications GPS systems.

Jon C. Ogg
August 15, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.