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Technology Stocks : HAUP - Hauppauge Digital -- Ignore unavailable to you. Want to Upgrade?

To: Buoy12 who wrote (591)	5/23/1999 3:04:00 PM
From: hoffy	Read Replies (1) \| Respond to of 1149

>>>Where do you pull these valuations from,<<< I pull these valuations looking at their earnings (which most internets don't have but HAUP does) and revs and future growth. It is expected to make $1 in earnings in 2000. For a company with expected 40-50% growth each year the market usually affords these stocks PE's around 40 or sometimes higher. SO based on fundamentals the stock could be at 40 easily. But this is now an internet play and the market has valued these companies at much higher multiples. Also a company with the low float could have a short squeeze like KTEL or NTBK had to drive it way past where it should go. How high is possible is hard to say. In a short squeeze the stock could go to 75 in a day or so. If not then it could sell off back to 20. I am betting that it goes much higher before it sells off. I think the chances are better because of the hype and the Business week article and the low float. I am a trader a right now I think it is better to be on the long side of it. I might go short eventually if it gets squeezed into the 60-80 range by the middle of the week but then there is some money to be made there. Right now going short to make a few points is not worth the risk of it taking off and going to 75 like I said. The small float and the large short position always makes that possible.