Kelly Smith | Made in Seattle

So Nokia bought Navteq today. Garmin falls 10%. Some of you may remember that I recommended Garmin as a GPS stock buy back in May. It would have been trading around 55 then so you would have doubled your money since it is at 107 today even with the 11% drop on the Nokia news. GRMN has pushed the stock up a robust 145% in the past 52 weeks, continuing the run that made Garmin a small-cap darling, sending its shares up 440% over the last three years.

So, does this purchase of Navteq make Nokia the new GPS powerhouse? Is GRMN a sell? Is this 11% drop an omen?

Heh…don’t believe it. This is the kind of news that bargain buyers LOVE to see. I’m going to watch Garmin tomorrow. I hope it drops even more. I’ll be buying. Garmin has a market value of 23 billion. Navteq is at 7.5 billion. Garmin isn’t going anywhere. If someone comes out to buy Garmin what do you think it will sell for? When mobile phone companies started putting cameras in cell phones did you see Canon or Nikon implode? No.

In 5 years at least 25% of cars will have GPS installed. Garmin is a buy. A big buy.