"The Global Positioning System is a worldwide navigation system that enables the precise determination of geographic location using established satellite technology. The system consists of a constellation of orbiting satellites.

"The satellites and their ground control and monitoring stations are maintained and operated by the United States Department of Defense; access to the system is provided free of charge by the U.S. government.

"In March 2007, Garmin acquired substantially all of the assets of Nautamatic Marine Systems, Inc., a manufacturer of marine autopilot systems. Garmin acquired several of its European distributors in 2007 to strengthen its presence and capabilities in the European market.

"GRMN generated $500 million in free cash flow over the past 12 months. It has a strong balance sheet: current ratio (current assets/current liabilities) is 2.90; the company has $2.90 in current assets for every $1 of current liabilities.

"The company has no long-term debt. While net profit margins have been slumping over the past few years, they are still a healthy 24%.

"The company has shown five-year average earnings per share growth of 42.6%. Its return on equity is 36.4%. Overall, GRMN is a well-run business and a price of $16.50 or lower per share represents a very good value.

"If GRMN can grow earnings at only 5% per annum and maintain a P/E of 5, the stock will handsomely reward investors during the next five years."

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