Blueshift Ideas Seeing Some Positives On Silicon Image

Blueshift Ideas is out with a series of tweets on Silicon Image, Inc. SIMG, and the tweets say that Silicon Image could benefit from Mobile High-definition Link Technology. At last check, shares were trading at $7.19, up 32 cents or 4.66% on the session on 460,000 shares. The average daily volume in the name is just over 750,000 shares. The company trades at 12 times forward earnings, which is pretty cheap for a company growing its revenues some 40% year-over-year. In last week's research report, Blueshift said that Silicon Image will benefit from Mobile High-definition Link (MHL) Technology, though the wide adoption of the technology in electronics is questionable. According to Blueshift, Mobile High-definition Link is not expected to see wide use adoption in phones, but there is the potential for it to be standard in TVs. As such, Silicon Image would benefit the most since it makes the chips, licenses the technology and has previous OEM confidence based on HDMI. Blueshift said the early users of Mobile High-definition Link technology are very positive about it, and it will influence their purchasing decisions. ACTION ITEMS:

Bullish:
Traders who believe that Mobile High-definition Link will see strong adoption might want to consider the following trades:

• Going long Silicon Image at these levels makes sense since the company is still a small cap, with a market cap around $500 million, and could be a potential buyout candidate if MHL takes mass adoption.

Bearish:
Traders who believe that Mobile High-definition Link will falter, and will not see enough wide spread adoption may consider an alternate position:

• Going short SIMG based on the MHL hype, as the hype for MHL is rapidly increasing. If MHL does not see wide spread adoption, SIMG's shares are likely to fall sharply.

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