Hauppauge Digital Inc. (HAUP)

[Investing707]

Jerry is watching the float like a hawk trust me. That guy wants nothing more than to be chained to his desk like he has been for the last 20 years and not dealing with any external auditors or reporting requirements (and basically collecting a phat paycheck).

The float shares are locked up by insiders so there is nothing any person can go to get these guys to file. Like I said earlier as soon as anyone tried to grab 500,000 shares the MM's would be on the phone with management and they would widen the spread to make it impossible to get any more than I bet 5-10% of the company.

Still they would turn around and issue a new class of shares making anything purchased now worthless. So the volume you see out there I'm seeing it as well, but to me they look like sales and not buys. For whatever reason some people must have bought this earlier in the year.

There are two very very large issues HAUP has to deal with that I think keep Jerry and Ken up at night:

1 . The whole regulation surrounding reporting requirements on being dark is up for comments now and review. There are going to be massive changes which will have an immediate and direct impact on HAUP.

2. Eventually people will figure out the new products they are offering and see the new market opportunity. So they will be buying shares in the open market making it harder for them to hide under the cloak of being dark.

So end of day, the rules they have been hiding under are going to get changed in a way that is unfavorable to them and on top of that, they will have more brand awareness coming up in Q2 and Q3.

Its a perfect storm about to happen. Going to watch this one pretty close to what shoe drops first.