Keep and eye on HAUP $6.28 next week....It will be interesting to say the least.
HAUP usually delivers blockbuster news at this time of the year and into next month.
Last year the company issued its pre-christmas new product news on December 19.....the stock jumped 70%. The CEO already said that HAUP will introduce new products in late 4Q 2006 (about now) and and early 1Q 2007 (presumably at the Consumer Electronics EXPO in Vegas in early January).
HAUP is an undervalued profitable company with only 4.5M shares in the float and growing at about 20%/year.......HAUP has 90c/share cash and has no long-term debt.
Expected 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.
- HAUP will likely 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/deals will start affecting HAUP's top and bottom lines starting in 1Q 2007 accelerating its already robust growth .
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."
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.."
AI
