GPS chipmaker SiRF Technology Holdings (Nasdaq: SIRF) reported 2nd quarter earnings on Tuesday. The stock has gone down from the mid 23 range to now mid 19’s since the earnings.
Here are the highlights:
- Net Revenues for the 2Q were 70.6 million – Increase of 23.4% YoY.
- Gross Margins declined to 54.6% from 56.3% a year ago.
- Net Income came in at $2.1 million or $0.04 per diluted share compared to $1.7 million or $0.03 per diluted share a year ago.
- The company has $211 million in total cash.
- The company lowered its full year 2007 revenue guidance to $300 – 310 million from $320 – 330 million.
Other key highlights:
- Revenue in wireless growth slower than expected.
- SiRF, Intel (Nasdaq: INTC) to jointly develop and market products for Mobile Devices.
Analyst Opinions (post 2Q earnings):
- RBC Capital Markets: ‘Outperform’ but target price reduced to $26 from $30
- Montgomery & Co: ‘Outperform’ but target price reduced to $25 from $32
The wireless shortfall was blamed on Motorola (NYSE: MOT) which has really been struggling of late. It recently even gave away its number two wireless handset spot to Samsung.
SiRF is still in a great position and is a leader in its field. We are still further away from the wireless/handset GPS promise but not too far away. Wouldn’t it be nice to have built in GPS in the next version of the iPhone? Although, there will be more competition in this sector for SiRF as compared to the PND sector the opportunity is much bigger as well. Although, its hard to call a bottom it wouldn’t be too bad to start a small position here. SiRF could also be an acquisition target now that its privately held competitor, Global Locate, has been acquired by Broadcom (Nasdaq: BRCM).
I recently got back into SiRF (pre-earnings) by buying JAN 08 calls and bought AUG 07 PUTS right before earnings to proctect myself. I am glad I bought the PUTS and I think I should be fine by the time JAN 08 rolls around. I previously got out SiRF back in December 2006 and said that I still like the GPS sector and am looking into Navteq (NYSE: NVT). As it turns out I kept looking at Navteq but never bought it. At that time Navteq was trading in the mid 30’s and now as we all know its near the mid 60’s. Yes, of course, I am looking back at Navteq again for a good entry point.
* Full Disclosure: I own long-term CALLS and short-term PUTS in SIRF.
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GPS chipmaker SiRF Technology Holdings (Nasdaq: SIRF) reported 2nd quarter earnings on Tuesday. The stock has gone down from the mid 23 range to now mid 19’s since the earnings.
Here are the highlights:
- Net Revenues for the 2Q were 70.6 million – Increase of 23.4% YoY.
- Gross Margins declined to 54.6% from 56.3% a year ago.
- Net Income came in at $2.1 million or $0.04 per diluted share compared to $1.7 million or $0.03 per diluted share a year ago.
- The company has $211 million in total cash.
- The company lowered its full year 2007 revenue guidance to $300 – 310 million from $320 – 330 million.
Other key highlights:
- Revenue in wireless growth slower than expected.
- SiRF, Intel (Nasdaq: INTC) to jointly develop and market products for Mobile Devices.
Analyst Opinions (post 2Q earnings):
- RBC Capital Markets: ‘Outperform’ but target price reduced to $26 from $30
- Montgomery & Co: ‘Outperform’ but target price reduced to $25 from $32
The wireless shortfall was blamed on Motorola (NYSE: MOT) which has really been struggling of late. It recently even gave away its number two wireless handset spot to Samsung.
SiRF is still in a great position and is a leader in its field. We are still further away from the wireless/handset GPS promise but not too far away. Wouldn’t it be nice to have built in GPS in the next version of the iPhone? Although, there will be more competition in this sector for SiRF as compared to the PND sector the opportunity is much bigger as well. Although, its hard to call a bottom it wouldn’t be too bad to start a small position here. SiRF could also be an acquisition target now that its privately held competitor, Global Locate, has been acquired by Broadcom (Nasdaq: BRCM).
I recently got back into SiRF (pre-earnings) by buying JAN 08 calls and bought AUG 07 PUTS right before earnings to proctect myself. I am glad I bought the PUTS and I think I should be fine by the time JAN 08 rolls around. I previously got out SiRF back in December 2006 and said that I still like the GPS sector and am looking into Navteq (NYSE: NVT). As it turns out I kept looking at Navteq but never bought it. At that time Navteq was trading in the mid 30’s and now as we all know its near the mid 60’s. Yes, of course, I am looking back at Navteq again for a good entry point.
* Full Disclosure: I own long-term CALLS and short-term PUTS in SIRF.
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My first day back from vacation and the market takes its biggest hit in six years. Some of my high fliers such as Suntech Power (NYSE: STP) and FuelTech (Nasdaq: FTEK) have taken a big time beating. Suntech Power has gotten the worst of it being a Chinese company. What this downturn has done is made some quality stocks cheaper and more attractive. I plan to either buy the following stocks or add to my position in the near future depending on the overall market conditions.
Here’s my list (in no particular order):
- SiRF Technologies (Nasdaq: SIRF): The 5-day chart on this GPS Chipmaker looks pretty ugly. SiRF proved the naysayers (like me) wrong the last earnings release. SiRF’s monopoly in GPS chips is dwindling but the overall market is growing.
- Infosys Technologies (Nasdaq: INFY): I don’t think Infosys needs any introduction. Another stock that has taken a big hit this week.
Click here to go to the original article
* Full Disclosure: I am long STP, FTEK, UA, AMSC. I don’t have positions in BA, HDB, IBN, INFY or SIRF.
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My first day back from vacation and the market takes its biggest hit in six years. Some of my high fliers such as Suntech Power (NYSE: STP) and FuelTech (Nasdaq: FTEK) have taken a big time beating. Suntech Power has gotten the worst of it being a Chinese company. What this downturn has done is made some quality stocks cheaper and more attractive. I plan to either buy the following stocks or add to my position in the near future depending on the overall market conditions.
Here’s my list (in no particular order):
- SiRF Technologies (Nasdaq: SIRF): The 5-day chart on this GPS Chipmaker looks pretty ugly. SiRF proved the naysayers (like me) wrong the last earnings release. SiRF’s monopoly in GPS chips is dwindling but the overall market is growing.
- Infosys Technologies (Nasdaq: INFY): I don’t think Infosys needs any introduction. Another stock that has taken a big hit this week.
Click here to go to the original article
* Full Disclosure: I am long STP, FTEK, UA, AMSC. I don’t have positions in BA, HDB, IBN, INFY or SIRF.
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Apple Inc. (Nasdaq: AAPL) made a big splash today at the Consumer Electronic Show (CES) with the introduction of the iPhone. If you still haven’t seen the iPhone you have no idea what you are missing. You can see the engadget coverage here. The iPhone is good enough to make a grown man cry.
Random thoughts:
- Apple stole the show with the iPhone announcement.
- Apple did a great job of not letting the iPhone specs and features leak out.
- Market Reaction:
- Apple (Nasdaq: AAPL): Up 8.31%
- Nokia (NYSE: NOK): Down 1.32%
- Motorola (NYSE: MOT): Down 1.83%
- Research in Motion (Nasdaq: RIMM): Down 7.85%
- Palm (Nasdaq: PALM): Down 5.69%
- Research in Motion and Palm got clobbered today but it might be interesting to note that the iPhone is not a smartphone. iPhone can play music and video, take 2 mp pictures and browse the web but doesn’t have Microsoft Office/ Exchange capabilities and no 3G. So it won’t be a business phone like a Treo or a Blackberry.
- iPhone is expensive.
- $499 – 4gb version with a 2 year Cingular contract
- $599 – 8 gb version with a 2-year Cingular contract
- This is a major win for Cingular (NYSE: T) as well. They also had exclusivity with the Motorola Razr when it came out.
- I am not sure if anyone can beat Apple when it comes to design and usability. The Apple and Steve Jobs legend keeps growing thanks to the iPod.
- We now have another Mobile OS with Apple using OS X in the iPhone.
- This is a wake up call for cell phone makers such as Nokia and Motorola. Apple has come up with a cell phone that has all the world drooling while Nokia and Motorola keep popping out variations of Razr.
- Motorola (NYSE: MOT) hasn’t been able to come up with a compelling cell phone since the Razr.
- Nokia (NYSE: NOK) hasn’t come up with a compelling device in ages. At least, Motorola came out with the Razr and the Q. Nokia was late in figuring out the ‘flip’ phone trend and then was late in figuring out that ‘thin’ is in. Nokia finally has come out with a ‘thin’ phone but it looks like an exact replica of Motorola Razr. Nokia does have some cool phones but they seem to lack mass market appeal. N-Gage was another failure for Nokia. Nokia really needs to wake up.
- Are we going to see Microsoft (Nasdaq: MSFT) come up with a Zune Phone? They do get hit by this because of their Windows Mobile OS.
- Nokia and Sony Ericsson (NYSE: SNE) (NYSE: ERIC) Samsung, Siemens and Panasonic also get hit because they have a stake in Symbian. I use a Nokia E62 which uses Symbian OS and let me tell you that its the slowest mobile OS I have ever seen.
I am still wiping the drool off my keyboard.
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