SiRF's Up: Post Earnings Selloff Looks Overdone

| About: SiRF Technology (SIRF)

I sold my shares of SiRF Technology Holdings Inc. (SIRF) back in February when the stock broke above $30. I have traded SIRF on and off over the last few years, and have always made money selling it above $30 and buying it back in the $20s.

I still firmly believe in the fundamental story at the company. SIRF is benefiting from the GPS wave of personal navigation devices (PNDs), and riding the growth of Garmin (NASDAQ:GRMN), Magellan, TomTom, etc.

But this year, the big growth story is the rollout of location-based services [LBS] among the big cellular providers. LBS should be a big opportunity, as GPS-enabled handsets get rolled out. And SIRF has lots of design wins already with these wireless carriers.

Nonetheless, the stock has been in a funk since reporting earnings. The selloff has continued unabated for almost a month now. I think it is overdone, and although there is no obvious levels of support being hit right now, I am buying back my positions.

Short interest has also grown by large amounts. As of April, 23% of the float was sold short. That could spark a lot of short covering, if and when. I think the stock will rise back to the 30s at some point this year, offering an attractive opportunity from today's levels.

Disclosure: Author has a long position in SIRF