Monday, November 06, 2006

Barron's Article Raises Concerns On SIRF

Over the weekend, a Barron's article highlighted the competition in the GPS chip market, and said that investors in SIRF should be weary of an up and coming competitor - Global Locate.

I think these fears are overblown, and that the stock is already more than factoring in the competitive landscape. But I don't think investors are giving the stock enough credit for the growth in the upcoming location-based services (LBS) being rolled out by wireless service providers.

The company is well represented in this area, and is being designed into many new products. SIRF is already 85% booked for Q4, according to Deutsche Bank.

The stock has started to recover from this year's swoon, but it is still trading below its 200-day and well off its 52-week high. I believe the stock will continue to build on its recent gains, and still offers solid upside.

long SIRF


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