tag:blogger.com,1999:blog-2949218657849719987.post5403530027583784778..comments2024-02-10T10:35:20.557+00:00Comments on My contrarian adventure: Analysis of GarminFredrik von Oberhausenhttp://www.blogger.com/profile/10924238593055161520noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-2949218657849719987.post-39925725452501899312015-09-14T08:28:36.836+01:002015-09-14T08:28:36.836+01:00Hi Wahlroos,
If it would be a one-off then yes Ga...Hi Wahlroos,<br /><br />If it would be a one-off then yes Garmin would look more interesting. I do not understand how they have for so many years managed to pay so little taxes and truth to be told I do not consider that to be correct either. A company making profit should also pay acceptable taxes on those earnings.<br /><br />The managers and board definitely considered it to be a one-off since they even decided to increase the dividend so you are probably correct with that.<br /><br />Today I think a bit more in the terms of if you buy the products and like the product and the company is not outrageous expensive then why not buy the shares of it also?Fredrik von Oberhausenhttps://www.blogger.com/profile/10924238593055161520noreply@blogger.comtag:blogger.com,1999:blog-2949218657849719987.post-35170525758267351352015-09-14T06:07:33.714+01:002015-09-14T06:07:33.714+01:00Hi,
Thanks for another interesting analysis. If y...Hi,<br /><br />Thanks for another interesting analysis. If you would disregard the FY14 large tax payment and treated it as one off item going forward, would it change your opinion?<br /><br />The explanation for the 300M tax cost for restructuring US subsidiary's from ownership of the Group's Taiwan entity to under the US entity makes sense to me. Considering that repatriating cash(now there is no need to move money from US-Taiwan-US-Swiss) would be easier and more tax efficient, as structuring most likely prevents tax leakage when avoiding paying unnecessary withholding taxes(which might not be credited fully against profits) and possibly allows getting the effective tax rate lower. Based on their 10-K, the Group's Swiss parents local tax corporate tax rate is 7,48% which is very good.<br /><br />It's a bit speculative but the share is starting to tickle my buying bone, considering that the management is a large shareholder, so I would assume that they would not want waste their own money in the tax exercise if they would not believe that it will payoff with tax savings in the future. <br /><br />br<br /><br />Walhroos<br />Anonymousnoreply@blogger.com