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