SIRF Technology Holdings has a really tough time ahead in the GPS market. SIRF, the leading supplier of semiconductor chips that go into global positions systems [GPS] from companies like Garmin and TomTom, is definitely competing with the companies like Trimble (Nasdaq: TRMB) and Qualcom (Nasdaq: QCOM) in GPS market.



SIRF is really the leader when it comes to chips in this space and, unless or until the stock had some nice momentum going, and there is increasingly a lot of potential waiting for the SIRF in the area of GPS still.



To be fair, the hay days do not last long. However, the heart of GPS (SIRF) has to be active enough to face the competition, as more and more of the volume is moving through the consumer channel, which is really not a good sign for the Chip companies. It must be kept in mind that weather value adds or not you will have your margins squeezed when you go mass-market retail.



(1) A few of the swelling bracket analysts in fact simply berated the stock and the prospects of growth. Whereas a few people prefer poo-poo Wall Street analysts, I suppose it as critical to keep track of what has been said by them because, like it or not, when the big firms begin singing sell; there seem pressure on the stock.

(2) SIRF mainly was hit by the same Mack truck that every other high-flyer in the tech space is hit by, from Sierra Wireless (Nasdaq: SWIR), to Google (Nasdaq: GOOG), to Rackable Systems (Nasdaq: RACK). In the world of GPS unless you bring about cure for cancer or finds solution to print money, you may be facing a beating. So you have to be your own doctor by taking precautionary steps.

(3) The stock is consisted with stocky valuation, more than 35x-trailing profits at the outset of July and even the elevated back in May. Some amount of expectations comes on future growth, with a valuation like this.



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