HAUP is a value play, completely devoid of any momentum here, it has bounced from 2 in April and could bounce again, but, if August is going to be as bad as think, you mat want t be ready to buy more around $1.25 or so. Technically the chart stinks, but fundamentally, they have returned to profitability, are selling at a very small premium to book, at close to 50% of sales and at a PE of around 10 (I expect about $.20 earnings for the current fiscal year, they already have $.10 under the belt, but traditionally, the last quarter is stronger. With the economy in Europe declining (70% of their sales are from Europe), that estimate may be in danger. I do not recommend it for a bounce, but by August, I think it should bottom. Next April, I believe it could be between $4 to $8 per share. If market attention is directed to it (like if their business picks up again), it could be explosive. I have a bid around $2.00, but not for a "fast trade".
Zeev |
