HAUP

[David Randolph]

HAUP touched the ascending trendline (red on chart), volume picked up some, so it's time to start another bull run.

There weren't any news out, I'll keep holding HAUP.

[David Randolph]

HAUP touched the ascending trendline (red on chart), volume picked up some, so it's time to start another bull run.

Yes, nice bounce on HAUP, responding to the ascending trendline support. I believe it is a matter of time before HAUP decisively breaks out above the $8 level towards $10. 

[David Randolph]

HAUP made a brief trip above $8, but volume wasn't there to support the breakout, so it fell back to a close at $7.85. I guess Haup needs positive news to really breakout above $8 towards $10.

I expect those positive news when the company reports its fiscal 1st quarter 2007 (calendar December 2006 quarter), so I'll continue holding.

[David Randolph]

Just 49,000 shares traded on HAUP yesterday and no news out. I'll keep holding the stock.

[David Randolph]

I'll keep holding HAUP for earnings, which I think will be a positive surprise, but then probably I'll bail out.

I'm thinking that the company's products will be obsolete somewhere down the road. With IP TV rolling in (for example ARRS is working on that), nobody will need a peripheral antenna to get TV on the computer. The TV will come through the internet.

HAUP is having trouble to sustain itself above $8.

But I'll hold some more time, because fiscal Q1 (ended in December 06) is always the strongest quarter for HAUP and EPS numbers can really paint an "undervalued" scenario. Earnings will be out over the next couple of weeks.

I'll keep holding HAUP.

[David Randolph]

How sweet was HAUP, giving us a 6.26% advance on Friday? With the earnings release approaching, the stock needs to discount that they will be the best ever in the company's history.

The plan is simple. Keep on holding HAUP to take profits after fiscal 1st quarter results. Perhaps it will run towards the next technical resistance, at $10.1.

[dnickers]

I'm thinking that the company's products will be obsolete somewhere down the road. With IP TV rolling in (for example ARRS is working on that), nobody will need a peripheral antenna to get TV on the computer. The TV will come through the internet.

I completely agree David.  For those that are interested in IP tv, check out TVUnetworks.com.  It's free and I'm able to watch Comedy Central, etc. While there is PLENTY of room for improvement/resolution, this is definitely the way television is going to go.

[David Randolph]

Usually I don't have time to watch TV, but thanks for sharing the information dnickers

Nice rally on HAUP yesterday, it is becoming clear the company will report better than expected results. I'll keep holding to take profits on the news when they're released.

[David Randolph]

Probably HAUP's results will be out next week, just before or at February 15th, because they're reporting fiscal Q1 2007, not full year 2006, so the limit date is February 15.

There's strong resistance around the $10 level, more specifically, at $10.10, so I'm going to change my trading plan slightly:

1) Take profits on HAUP at $10 if possible, or else ...
2) Keep on holding until results are released

[guitarman]

Hi David and all
You'll have to excuse my ignorance of the technology in this field...
I was just wondering why this company can't evolve their product line to accomodate new technologies like IP TV?
I.E. develop an internal card or software?
If they are such a good company,  should'nt they be doing some R&D for future products?

Thanks and Best
GMan

[Terliso]

Fundamentally HAUP surely deserves a higher price. The market seems to agree with this view, it is just spending some time around the $7.17 long term resistance level, throwing the weak hands off the board.

HAUP is accelerating above the price channel, it is now the third percentage gainer in the Main Portfolio

[David Randolph]

Hi David and all
You'll have to excuse my ignorance of the technology in this field...
I was just wondering why this company can't evolve their product line to accomodate new technologies like IP TV?
I.E. develop an internal card or software?
If they are such a good company,  should'nt they be doing some R&D for future products?

Thanks and Best
GMan

Great question and thinking GMan, I'm not used to receive posts to maintain a big gainer, as most people are eager to take profits on any excuse, instead of letting the profits run which is the right attitude.

My believe is one needs a very strong motive to hold a losing position or to sell a winning position. One doesn't need a strong motive to cut a loss short, money management tactics usually are enough.

Let's check what HAUP has been doing ... well, their vision of the future is different from mine:

«Though management believes that the delivery of TV via the internet will become more popular in the future, we believe that TV delivered to the PC via cable, broadcast or satellite will continue to dominate. As our products connect directly to cable, broadcast and satellite receivers, and deliver a high quality image, we view our products as the preferred way to watch TV on the PC versus the delivery of TV via the internet.»

The plan continues to be: take profits at $10 or else keep on holding.

[David Randolph]

Results were just out at HAUP, look to take profits around $10, as planned !

• Hauppauge Digital Reports Fiscal 2007 First Quarter Results
Business Wire (Thu 9:25am)

[David Randolph]

No, the plan was to take profits at $10 or when the news were out, news was out, SELL !

(above $9, no need to run)

[raspi]

$0.39 EPS for the last 6 months!!! I don't know if I am missing something but HAUP seems to be awfully undervaluated... I bought some this morning.

http://biz.yahoo.com/bw/070509/20070509005243.html?.v=1
Hauppauge Digital Reports Fiscal 2007 Second Quarter and Six Month Results

SECOND QUARTER RESULTS

Net sales were $29.9 million for the second quarter of fiscal 2007 compared to $26.7 million for the previous year's second quarter, an increase of approximately 12%.

The Company recorded net income of $1,276,933 for the second quarter compared to net income of $957,878 for the second quarter of fiscal 2006, an increase of approximately 33%. Basic net income per share for the second fiscal quarter of 2007 was $0.13 and diluted net income per share was $0.12, compared to basic and diluted net income per share of $0.10 for the second fiscal quarter of 2006.

Selling, general and administrative expenses increased by $120,382, for the second quarter of fiscal 2007 compared to 2006. Increases in compensation expenses and sales office operating expenses were the primary reasons for the increase.

SIX MONTH RESULTS

Net sales were $59.8 million for the six months ended March 31, 2007 compared to $51.7 million for the six months ended March 31, 2006, an increase of approximately 16%.

The Company recorded net income of $3,479,669 for the six months ended March 31, 2007 compared to net income of $1,978,352 for the six months ended March 31 2006, an increase of approximately 76%. Basic net income per share for the six months ended March 31, 2007 was $0.36 and diluted net income per share was $0.34, compared to basic net income per share of $0.21 and diluted net income per share of $0.20 for the six months ended March 31, 2006.

Selling, general and administrative expenses increased by $541,536 compared to six months ended March 31, 2006. Increases in sales related marketing expenses such as commissions and advertising due to higher sales plus higher compensation expenses were the primary reasons for the increase.