SiRF's Up

My Stock of the Day today is SiRF Technology (SIRF).

I have been bullish on SIRF for a long time, although I have had my position hedged from time to time due to the above-average volatility associated with the stock.

SiRF reported an in-line quarter last Thursday, and the stock gapped higher. This was due to the fact that so many on the Street were bearish and nervous about the company's earnings report. When no major flies appeared, the green light was signaled.

Yesterday, Deutsche is confirming what I have been saying about increased handset penetration as cell companies rollout location-based services (LBS) in 2007. They also upped their price target to $33.

Today, the stock is gapping higher again, likely exacerbated by short-covering. Despite the recent run-up, money flow is just beginning to turn positive.

long SIRF