Going into March 03 HAUPs float was only 6% owned by institutions. We 've had three bucket days this month where the predominate share of the days volume was bought for transfer to the funds. Many more days like this to come.
My projection is that accumulation continues ahead of a move by HAUP back into the R2k....that buying has already been felt. Each vol climax shrinks Traders share of the float, its being absorbed at higher prices without a hiccup, pull backs have been on pathetic volume, there are not many bonafide sellers from the investor class, dd says to buy and hold for later harvest.
To get the gross fundownership % to 25% will require another 1.8 million shares, earnings are coming and this will be the first full qtr of shipments to GTW and HWP.
It is a long and difficult process to tuck away 1.8 million shares, from a tight float like Haups. Hence when price is out of balance too demand...stalk the bear, using market orders to manage your own accumulation, lest you be managed by competitive intent.
Report from CEBIT is that HAUP is very strong in Europe including one of the 3 largest Euro OEMS. Will GTW move this into the Media Center units from newly acquired EMachines as well? If they do that it could near double their volume, because Emachines sells even more units than GTW.
Dell is a Big shoe that is yet to drop....the applications will dictate it drops close to HAUP, out of competitive necessity.
Fundamentally this is a very strong stock because its servicible demand from an applications point of view, has Never Been better and its these features and applications which are key catalysts to PC industry growth. We have the right OEMs at the right time to build scale, rear view mirror modeling of the present is of No value here.
The convergence of DVD/r formats, with broadband media penetration means that by end of next year we will be recording and archiving our web surfing, this will prove to be a bigger application than downloading movies on the basis of discs used in applications.
The media center PC will be the hub for this application ( barring it isnt changed or evolved into something else), the trend will allow us to record and store company conference calls, archive all similar data ( such as Posts on a subject), and reorganize our stored materials in such a way as to produce next generation output. The TIVO like features of the HAUP product line are applications extensible.....but nobodies talking about that.
HAUP has pieces to a very large puzzle. Once economy of scale kicks in, this company will probably be acquired.
The 9 month Wash and rinse was no accident.
The lions share of my positions are buy and hold for full appreciation. I'll do continual integrity tests on the way up, dont be fooled by the type of trading I posted yesterday.
In the heirarchy of Intent; Investor demand trumps trade noise every time. They will win some battles, investors will win the war.
Fundamentals matter...watch, dig and share what you can.
Have a great weekend everyone. |
