Per our earlier post, those following ZYX methodology, should have scaled in a 25% short sale on $GRMN around $39.20. Unfortunately price did not spike any higher to build a full position.
Today, the competitor $Tom Tom reported much worse than expected earnings. In sympathy, $GRMN shares are down to $33.80. We continue to be negative on $GRMN. However, $Tom Tom’s earnings were not as bad as they seem on the surface. $Tom Tom was affected significantly by currency translation. $GRMN is not likely to have unexpected currency translation adverse affects when it reports its earnings. In keeping with our methodology consider taking partial profits right here at $33.80 and tightening the stop band on the rest.
Consider selling the stock short again if its price spikes up.
