SiRF Tech Collapses - But Is a Bounce Candidate

I have counted about 6 downgrades on SiRF Tech (NASDAQ:SIRF) this morning. The stock is down 40% after not meeting estimates and guiding down last night. Most analyst targets now stand around $10.

A few points I want to make:

- First, this can't be a total surprise considering what Harman (NYSE:HAR) had to say about navigation devices.

- I was talking to a wireless/GPS analyst just yesterday who indicated that the SiRF chip may be designed into Google's phone.

- GPS functionality will be widely available in handsets sooner or later.

I think SIRF is a bounce candidate here at around $9.

Comments

[My take1:]

"the SiRF chip MAY BE designed into Google's phone"

The same thing can be said for SIRF's competitors' chips.

"GPS functionality will be widely available in handsets SOONER OR LATER."

Sooner or later, almost anything will be available in handsets.

2008 Feb 06 06:27 AM