The market for GPS mapping in cars and cell phones is booming. Garmin (GRMN) says it can stay on top.
Kevin Rauckman, CFO of Garmin, joined Fast Money via telephone to explain the company’s strategic acquisition of TeleAtlas, a map supplier.
TeleAtlas will give Garmin additional leverage to build new and more innovation applications, Rauckman said. And even though Garmin blew outs its earnings, the stock sold off Thursday. Rauckman called it normal for the Street to sell the acquirer and by the acquired in the short-term after any M&A situation.
Rauckman acknowledged that Garmin’s acquisition of TeleAtlas was a response to a rapidly changing industry in the GPS/navigation space, perhaps best underlined by the high profile purchase of Navteq (NVT) by Nokia (NOK) last month.
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Trader disclosure: On Oct 31, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Najarian owns options in (BIDU), (GOOG), (MER), (YHOO); Macke owns (YHOO), (DIS); Carter Worth’s firm is a market maker in (DRYS), (YHOO)