Value Microcaps Motherboard

[whyme2005]

HAUp $6.3..up and up. Good market...bad market..it does not matter. There are several reasons why i believe that the best is yet to come for HAUP.

http://stockcharts.com/gallery/?haup

- Huge deal with Replay TV. Replay TV and HAUP offer an inexpensive and more powerful alternative to TIVO.

- HAUP will unvail its line-up of digital TV tuners/products before the holidays. Many of its existing products are already available with Microsoft's Vista.

- HAUP will report record earnings the week of December 18. HAUP's $76M in revenues for the first 9 months of 2006 already match the total of $78M for the entire 2005. Net income reported for the first 9 months of 2006 is 25c/share, almost doubling the 14c/share reported for all of 2005.

- HAUP will launch new products at the Consumer Electronics show in Las Vegas in early January 2007.

- HAUP will report 1Q 2007 earnings in February 2007. 1Q includes holiday sales and is HAUP's strongest quarter of the year.

It's no wonder why HAUP always goes up from November - February each year, This year however, HAUP is stronger than ever before and will likely reach new all-time highs in weeks ahead.

In addition to all the above,

HAUP is a profitable company growing about 20%/year.......HAUP is cash rich and has no long-term debt. HAUP is undervalued even with its most recent gains trading at a 0.6 P/S. HAUP is explosive with only 4.5M shares in the public float. Want more??


Replay TV and HAUP are now teaming to go after TIVO. Replay TV provides the software and Hauppauge provides the hardware and additional software. Together they provide more flexibility and power than TIVO, including the use of mobile devices, and a fraction of the TIVO's cost.

Additionally, Replay TV has a strong presence in Asia and has a huge marketing power being part of a large conglomerate like D&M Holdings.

HAUP's deal with ReplayTV is a very big deal for HAUP, and it appears that it is also a BIG DEAL for D&M Holdings, a japanese multi-billion dollar conglomerate that owns Replay TV.

D&M focuses on the home media/entertainment segment.. D&M owns industry flagships such as Denon, Marantz, McIntosh, Boston Acoustics, Snell Acoustics, Escient, and Replay TV. D&M Holdings acquired Denon and Marantz in 2002; McIntosh in 2003; Replay TV in 2004; Boston Acosutics and Snell in 2005.

Replay TV is a big part of D&M current and future growth plans. So much so that D&M mentions Replay TV, and Hauppauge Digital, on page 34 entitled "Growth Opportunity" of its 58-page November 16, 2006 "FY2006 Interim Financial Results."

Here is the link for D&M's PowerPoint presentation....look for "Latest Presentations" in the middle of the page.

http://www.dm-holdings.com/eng/ir/

Now take a look at Replay TV's website....look for the title "How do I Control it?".....and you'll see Hauppauge's name prominently displayed.

http://www.replaytv.com/tv_on_my_pc.asp

In addition to Replay TV, HAUP has significant OEM deals with many well known companies including Microsoft. Why would these companies be interested in doing business with little (but rapidly growing) Hauppauge Digital?....I believe it is because they all recognize the quality and innovation of Hauppauge products, a poineer in the area of digital and analog TV tuners for PC's. This is even more important now than ever with the ever growing use of broadband worldwide and the increased power and affordability of PCs. Now HAUP's products are more compact and powerful than ever often packaged in memory sticks for use on PC's and mobile devices.

HAUP's product line-up is growing exponentially. In its most recent 10Q, the company stated:

"Our R&D departments in New York and Taiwan have been teaming together to deliver an impressive series of new products....Together, the R&D team is scheduled to introduce 20 new products in fiscal 2006...”