Sirf Technology Is on the Ropes

Sirf executives said Tuesday that the wireless business would begin to make a positive impact to financial results in the second half of 2008 thanks to certain design wins.

But the fact is that many of the new GPS competitors, such as Broadcom, are sharply focused on the cell phone market. Like many technology companies that rise to prominence on the back of a hot new technology, the business becomes much less viable once larger players decide they want a piece of the pie.

"If I was a manager at Sirf, I would have been looking for a sale a long time ago," said the hedge fund analyst.

And with GPS technology showing itself a popular acquisition in recent months, Tuesday's selloff makes Sirf even more ripe for a takeover than two months ago, when its shares lost half their value.

Asked about the potential of selling the company during Tuesday's conference call, CEO Micahel Canning tersely replied that Sirf's board has made it clear the company is not for sale.

With its stock trading at the lowest level in its four years as a public company, though, the board may not have the final say on the matter.