Value Microcaps Motherboard

[whyme2005]

HAUP $6.35 Keeps moving Up Relentlessly.....

Undervalued HAUP, with only 4.5M shares on the float, will likely reach new highs after its new product line-up is announced late this week or next week. HAUP gained 50% on over 10M shares traded after its 2005 announcement at this time last year.

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

HAUP is a profitable company growing about 20%/year.......HAUP is cash rich and has no long-term debt. HAUP is still trading at a very low P/S ratio of 0.7 P/S. The potential pps appreciation form this point forward is significant.

Known short and long-term catalyts for further PPS gains:

- A new and potentially lucrative deal with Replay TV. Replay TV and HAUP offer an inexpensive and more powerful alternative to TIVO. This Replay TV news release last month explains the Replay TV/Hauppauge bundled offer:

http://www.replaytv.com/press_release/11192006.asp>

- 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. The benefit of the Replay TV deal and new products will start affecting HAUP's to and bottom lines starting in 1Q 2007 accelerating its already robust growth .

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. Since HAUP is at the threshhold of potentially phenomenal growth, it is likely that once it goes above double digits it will keep moving up. Institutional interest has increased significantly in recent months

Regarding the Replay TV/HAUP deal, Replay TV and HAUP are now teaming to go after TIVO and others in the sector. 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.

Replay TV is owned by multi-billion dollar entertaiment/consumer electronics' giant D&M Holdings. 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/>

In addition to Replay TV, HAUP has inked significant recent OEM deals with many well known companies in the digital TV and computing entertainment world. Now HAUP's products are more compact and powerful than ever often packaged in memory sticks for use on PC's and mobile devices. With broader broadband use and more computing power, HAUP is poised for phenomenal growth.

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.."