The biggest buzz this summer is about Big Data with investors going crazy searching for Big Data stock plays. May 17th was the IPO of Tableau Software (DATA). It raised $254.2mm at $31 and finished its first day of trading up 63.7% to $50.75, and is now $56.41 up 82% from its IPO. DATA has a market cap of $3.24 billion with sales of only $143mm!
The VC firm that funded Facebook, Accel Partners, announced last week they are spending $100mm to form Big Data Fund 2. Google Trends shows interest in Big Data Analytics increasing every month of 2013, with buzz up 66.7% since the end of December. In the 19 months since Accel formed their first $100mm Big Data Fund, interest in Big Data Analytics has increased 567%!
Many private Big Data firms are expected to file for IPOs this summer with hopes of reaching billion dollar valuations and double-digit price/sales ratios! We are about to experience a modern day Gold Rush as Big Data revolutionizes a wide range of industries - including the $100 billion cable TV industry! A new article "How Big Data Keeps Cable TV Watchers Hooked" discusses pay-TV operators using Big Data to launch ad campaigns that follow users from TV to the web, while stopping users from migrating to Netflix!
The #1 Big Data Analytics firm serving pay-TV operators is already public, yet is completely undiscovered: Concurrent Computer (CCUR). It could rapidly double as Big Data investors begin to discover it! CCUR is currently $7.57 with an enterprise value of only $43.9mm or 0.69X its sales of $63.23mm vs. DATA trading with a price/sales ratio of 22.66! CCUR only needs an enterprise value/sales ratio of 2 for it to more than double to $17 per share!
CCUR's revenues, gross profits, operating income, and EPS - have each risen quarter-after-quarter for 12 months straight! CCUR's 3Q EPS was up 175% YOY and its 4Q results could be very strong due to the recent signing of a HUGE deal with Virgin Media!