Wednesday, July 11, 2007

A New Swell Could Be Brewing

For the unitiated, that's surfer lingo in my title. Just kidding. Anyway, today SiRF Tech (SIRF) is getting a big pop as it breaks out of its recent consolidation.

I have traded this stock many times over the last couple of years, and it is now back at attractive levels. The stock has been mired in a downtrend since reporting earnings last quarter. They also made an acquisition recently. But regardless of whether they merely match current estimates, I feel the protracted decline in the stock more than prices in such an outcome.

This company still has strong fundamentals and a rosy growth outlook, imo. I believe the wireless opportunity for them will be big. I hope to hear more about how it is progressing on their next earnings call. Nonetheless, I think the action today could be the end of the recent decline, and the start of a new uptrend for the stock.

long SIRF


At 4:13 AM, Blogger Untiedshu said...

You've been spot on with your calls on SiRF in the past, so I'm going to stick with you on it. Shouldn't you wait until it clears the range at 23 before jumping in?

At 3:06 PM, Blogger J. Kahn said...

Your wish is my command. But I thought yesterday's surge on big volume was more meaningful, as it broke the recent downtrend line in plance.


Post a Comment

<< Home