October 2, 2007

Vanguard Files Managed Payout Funds Prospectus

Vanguard filed a registration statement with the Securities and Exchange Commission for a new series of managed payout funds that are designed to provide monthly payments to investors in retirement. Vanguard plans to offer three funds: a 3% payout fund, a 5% payout fund, and a 7% payout fund. I will have further details for you on Vanguard’s new funds in the December issue of Intelligence Report.

Sell Garmin

Yesterday, Nokia announced that it was acquiring Garmin’s (NASDAQ: GRMN) map supplier Navteq. Garmin shares sold off on the news. The Nokia acquisition puts the only two viable map suppliers in the hands of Garmin’s competitors. The long-term competitive position of Garmin has likely been impaired to a great enough extent that the stock’s current valuation is no longer justified. Garmin shares are up 88% since I first recommended the stock back in April. My year-to-year rate of change chart also shows a sell signal — time to move on. Sell GRMN.

Tags: Garmin, GRMN, vanguard