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[whyme2005]

HAUP $4.01 UPDATED DD...for those interested

Hauppauge (Nasdaq:HAUP) is moving up ahead of its 4Q and FY 2005 earnings report to be released in December. Last Friday was a Huge day for HAUP, and surely there will be several more like it in days/weeks ahead. This will be a record year for HAUP and the stock is likely to gain substantially from today's prices.

Historically, HAUP has rallied in the November - March time frame as you can see clearly in the lower chart:

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


INVESTMENT HIGHLIGHTS:

FLOAT: 5M shares
P/E: 16
P/S: 0.5
Cash: $8M or 80c/share
Debt : ZERO
Projected 2005 Revenues: $85M ($65M IN 2004)
Projected 2005 Net Income: 26 - 30c/sh (2004 was 19c/sh)
Current Market Cap : $40M


So far in the first 9 months of fiscal 2005 HAUP has already accumulated 24c/share net income vs. 19c/share in the entire 2004. Revenues for the first 9 months of 2005 have reached $65M already matching the revenue for full year 2004!!

Besides reporting a record year in net income and revenues, HAUP will likely provide a strong guidance for 1Q 2006, its seasonally strongest quarter. HAUP has released 3 fantastic new products at the start of 1Q 2006 just in time for the Holiday season. For HAUP, fiscal 1Q ends on December 31.

HAUP has recently unveiled 3 new products that will likely cause 1Q 2006 earnings results to break all-time records. 1Q is usually reported about 8 weeks after 4Q.


Jim Cramer, on his sindicated TV show, said a few days ago...

"BOTTOM LINE: MOST IMPORTANT, WHEN INVESTING, INVEST IN COMPANIES WITH CASH AND ZERO DEBT..."

He did not mention HAUP specifically, but HAUP with $8M cash (80c/share cash) and ZERO Debt, certainly meets that important criteria.


ABOUT HAUP:

Hauppauge Digital, Inc. (NASDAQ:HAUP - News) is the worldwide leading developer and manufacturer of analog and digital video, TV and data broadcast receiver products for personal computers. These video boards allow PC users to watch television on their PC screens, receive digital TV, record TV to a computers hard disk and create both still video images and digital video movies. Hauppauge's flagship product, the WinTV family, is the leading branded TV card in the retail market.

The Company is headquartered in Hauppauge, New York, with administrative offices in New York, Singapore, Taiwan, Ireland and Luxembourg and sales offices in Germany, London, Paris, The Netherlands, Sweden, Italy, Spain, Singapore and California. The Company's Internet web site can be found at http://www.hauppauge.com.


Always Do your DD