According to AppleTech TV news, the next generation of Apple iPhone may have GPS chips.
This makes sense as Location Based Services are going to increasingly integrated into anything that moves from cars, to cell phones, to cameras.
SIRF, the Leading maker of GPS Chips looks to benefit from this trend and it is very cheap here. Using information from Yahoo Finance:
Forward PE: 17.28 (yesterday, it was 16.39)
5 Year Estimated Growth: 30%
A PEG ratio of .57 (less than 1 is dirt cheap) for great growth is a bargain. GPS chips will be everywhere, and SIRF is a leader in this area. Global Locate, a private company, is a competitor, but I see SIRF remaining dominant in this area.
When you compare other companies in the location based service area by looking at their forward PE:
Garmin (GRMN): 19.98
Navteq (NVT): 27.60
SIRF looks cheap here for its growth.
Lenny Dykstra of TheStreet.com also had some good things to write about SIRF.
For the long term, SIRF looks like a buy here, but be aware of the volatility and keep your eye out for any real competitors which I do not see right now.