Longs must get ready to call the Kettle Black
I'm very excited you all are making such great money,
and the shorts are getting killed, but I'm short, and
will illustrate how longs have more to fear than us.
today we saw the stock sell&short down to $22 and it
quietly sat there till WAVX press release and then
HAUP's press release 2 hours later.
We learn nothing new from either press releases, yet
the stocks thin float and large attentive audience
make it a big mover on an otherwise down day.
WAVX/HAUP can't pull these rabbits out of their hats
much longer unless they want the SEC up their ass,
and no matter who helps promote this WAVX/DTV Card
from HAUP, at $500 a pop, it will be a poor seller
unless a content/Etailer provides costly incentives.
I'm not calling this one short or long from here, the
stock is way too fragile now for either conviction. I
am only saying that the underlying fundementals driving
this stock run are BS, and the run is purely technical.
I feel much more sorry for Longs buying at these
nosebleed prices hoping for more, then shorts who
wisely cover at the first sign of trouble and would
advise Longs to take profits here, in hopes of getting
this stock MUCH cheaper over the coming weeks if they
think this July product launch will spark another rally.
(If you don't think I have a feel for todays move, then
read #733, as I hit that one right on the mark at 3pm.)
WSJ Online - Have a Good Read:
DJ Hauppaugue Digital Continues To Soar On Magazine
Report
By Christopher Grimes
NEW YORK (Dow Jones)--Hauppauge Digital Inc. (HAUP) continued its frenzied surge Monday,
hitting a new 52-week high in the aftermath of a BusinessWeek article that said the company would
form an alliance with "a large Internet company."
The stock, which more than doubled Friday to 27 13/16 from 12 1/2, was a hot topic on several
popular Internet investment chat rooms, with many traders asking their peers whether to short the
stock or to buy it.
Right now the Hauppauge, N.Y., company makes makes most of its money selling digital cards that
enable personal computers to show cable television on the monitor.
But Hauppauge has recently announced "strategic relationships" in other areas. In its May 6 earnings
announcement, it said it was working with bulletin board-listed Wave Systems Corp. (WAVX) to
develop its electronic commerce system.
The company earned 31 cents a share for the year ended Sept. 30, and its chief executive has said in
interviews that he's comfortable with projections that earnings in the current fiscal year could hit 60
cents.
Robert Van Securities analyst Steven Singleton said he's optimistic about the company's prospects,
particularly in its work in the high-definition television market. But he said he didn't know of any
upcoming Internet alliances that were suggested in the BusinessWeek article.
"I believe the BusinessWeek article is speculation that there is another announcement upcoming," said
Singleton, who rates Hauppauge shares at buy. "I don't know what that announcement is."
The article said Hauppauge "will announce a joint venture soon with a large Internet company that
broadcasts streaming media programming on the Web," attributing the information to a New York
money manager.
Calls to the company weren't immediately returned. An outside spokesman wouldn't speak on the
record about Hauppauge's stock activity.
Earlier the stock rose as high as 38 1/8, past its previous 52-week high of 28 15/64 set Friday. It
recently traded at 31 5/8, up 3 13/16, or 13.7%, on volume of 22.5 million shares, compared with a
daily average of 353,800.
- Christopher Grimes; 201-938-5253
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