Anil

SiRF: Undervalued or Value Trap?

Hi Joe

That's an interesting view. However I am not in agreement that public companies are valued lower than private.

If there is dearth of quality private companies looking for capital or a specific VC firm has trouble with deal flow or funnel then its another story. I think the valuation in Private company adjust to new valuation at each round dynamically. But since they are not traded every day, some private companies which raised a decent round in good times don't have a "mark-to-market" till their next round.

Over all I agree with your analysis. The management of SIRF would be looking at their past valuations and would likely awaiting return of sunny days till it does not matter any more. Look at Yahoo... I think that's because we are people in Exec are optimists otherwise they won't even get invited for an interview!!!

LOL.

Anil