Let me begin by apologizing for the lame and unoriginal headline of this article. However, GPS chip maker SiRF Technology Holdings (Nasdaq: SIRF) is on a upswing and it blew past $30 after a weak opening today.
I wrote back on July 25th to keep an eye on the stock as it got clobbered after reporting second quarter earnings. Shortly there after, I wrote about its recovery citing a positive AP article. I even said that I am going to buy some SiRF myself. I actually ended up waiting until the third quarter earnings came out and got in under 25.
SiRF is the leader in its field and I know competition worries are abound. There was even a Barron’s article citing growing competition. However, I am willing to ride this SiRF until I see any signs of competition hurting them. I love the GPS market and feel like its still got a long ways to go. Market is not saturated at all. GPS devices are still not common place and are still pretty expensive. We still haven’t seen full scale integration of GPS devices into Cellphones, Smartphones, Ipod’s (one can hope?) among other things. Only a handful of cars on the road have GPS navigation devices but I don’t know anyone who wouldn’t want a GPS navigation device in their cars. Then only thing keeping them back is the price.
I realize the Garmin fell hard earlier due to margin pressures but I think Garmin and other manufacturers can cut down in other areas before worrying about GPS chips. Garmin Nuvi sells for over $500 but the SiRF chip in it is less than $10.
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eBay’s (Nasdaq: EBAY) VOIP subsidiary Skype is starting to gain momentum with a surge of branded phones and deals in regard to ‘click-to-call’ advertising. Instead of debating forever if the Skype acquisition was the right move for eBay or whether or not it overpaid for it, lets look at what’s going on with Skype. (By the way, I do think eBay overpaid for Skype but I am willing to give eBay some more time to redeem themselves and make it work).
eBay’s recent deals with Yahoo on the domestic front and Google on the international front should really help Skype. Both Yahoo and Google will use Skype along with their own Yahoo Messenger and Google Talk services for their ‘click-to-call’ advertising initiative. The emergence of ‘click-to-call’ advertising will also be a big plus for Skype. I wouldn’t want to download Google Talk, Yahoo Messenger and Skype and use the one which is available with a click-to-call advertisement. With both Google and Yahoo using Skype for their ‘click-to-call’ initiatives it gives a Skype a huge edge. Skype is even being included in the Google Toolbar.
Also, being a gadget junky, I have been noticing a lot of new Skype enabled handsets come on the market recently. Some of these don’t even require you to have a computer. Interesting thing is that some of these handsets are made by big time companies like GE and Philips.
Thomson (NYSE: TMS) and Skype will release a GE (NYSE: GE) branded landline phone that integrates with Skype and lets user makes VOIP phone calls using Skype.
Courtesy: engadget
Meanwhile Netgear’s (Nasdaq: NTGR) Skype phone is finally shipping according to engagdet. This phone is what the future is all about. If you have WiFi access then you can make phone calls and receive them as well via your Skype account or make SkypeOut calls. Although, this phone will only appeal to niche users for now the potential of this phone could be huge. Once Wimax becomes mainstream and covers entire cities a similar Wimax phone could make cell phones obsolete.
Courtesy: engadget
Belkin also is coming out with its own Skype WiFi phone.
Courtesy: engadget
European heavyweight Philips (NYSE: PHG) isn’t going to sit back either. They are coming out with their own Skype phone and should probably do pretty well in Skype’s main market in Europe. We in the United States sometimes forget the popularity of Skype overseas.
Courtesy: engadget
Here are a couple of other Skype handsets from Logitech (Nasdaq: LOGI) and US Robotics.
Courtesy: engadget.
* I am long EBAY
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eBay’s (Nasdaq: EBAY) VOIP subsidiary Skype is starting to gain momentum with a surge of branded phones and deals in regard to ‘click-to-call’ advertising. Instead of debating forever if the Skype acquisition was the right move for eBay or whether or not it overpaid for it, lets look at what’s going on with Skype. (By the way, I do think eBay overpaid for Skype but I am willing to give eBay some more time to redeem themselves and make it work).
eBay’s recent deals with Yahoo on the domestic front and Google on the international front should really help Skype. Both Yahoo and Google will use Skype along with their own Yahoo Messenger and Google Talk services for their ‘click-to-call’ advertising initiative. The emergence of ‘click-to-call’ advertising will also be a big plus for Skype. I wouldn’t want to download Google Talk, Yahoo Messenger and Skype and use the one which is available with a click-to-call advertisement. With both Google and Yahoo using Skype for their ‘click-to-call’ initiatives it gives a Skype a huge edge. Skype is even being included in the Google Toolbar.
Also, being a gadget junky, I have been noticing a lot of new Skype enabled handsets come on the market recently. Some of these don’t even require you to have a computer. Interesting thing is that some of these handsets are made by big time companies like GE and Philips.
Thomson (NYSE: TMS) and Skype will release a GE (NYSE: GE) branded landline phone that integrates with Skype and lets user makes VOIP phone calls using Skype.
Courtesy: engadget
Meanwhile Netgear’s (Nasdaq: NTGR) Skype phone is finally shipping according to engagdet. This phone is what the future is all about. If you have WiFi access then you can make phone calls and receive them as well via your Skype account or make SkypeOut calls. Although, this phone will only appeal to niche users for now the potential of this phone could be huge. Once Wimax becomes mainstream and covers entire cities a similar Wimax phone could make cell phones obsolete.
Courtesy: engadget
Belkin also is coming out with its own Skype WiFi phone.
Courtesy: engadget
European heavyweight Philips (NYSE: PHG) isn’t going to sit back either. They are coming out with their own Skype phone and should probably do pretty well in Skype’s main market in Europe. We in the United States sometimes forget the popularity of Skype overseas.
Courtesy: engadget
Here are a couple of other Skype handsets from Logitech (Nasdaq: LOGI) and US Robotics.
Courtesy: engadget.
* I am long EBAY
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SiRF Technology (Nasdaq: SIRF) seems to have shaken off its previous lows after reporting dissapointing numbers on July 25th. I wrote back then to keep an eye on SiRF. After reaching its 52-week low of $18.20 the stock has recovered nicely and closed the day today at $24.11.
Associated Press also had an article out today with the headline, “SiRF Rises As Competition Worries Fall“. The article quotes, Jeffries analyst, Adam Benjamin in a note to his clients, “Based upon our checks, we believe SiRF secured the design win for this product, maintaining its status as the sole source for TomTom for the GPS baseband,”. The product he is talking about is called ‘Go One’ by Netherlands-based TomTom. Adam also maintained a ‘buy’ rating and price target of $31.
Although, I again missed out buying in the teens I am going to look to start buying in small chunks.
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