SiRF Technology Breaks Out of Its Recent Consolidation

On Wednesday, SiRF Technology (SIRF), got a big pop as it broke out of its recent consolidation.

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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 it reported its earnings last quarter. It also made an acquisition, recently. But regardless of whether it merely matches current estimates, I feel that the protracted decline in the stock more than prices in such an outcome.

In my opinion, this company still has strong fundamentals and a rosy growth outlook, and I believe the wireless opportunity for them will be big. I hope to hear more about how it is progressing on its next earnings call. Nonetheless, I think that Wednesday's stock action could be the end of the recent decline, and the start of a new uptrend for the stock.

Disclosure: The author is long SIRF.