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Microsoft Corporation Message Board

  • bbajf591 bbajf591 Apr 24, 2013 2:05 AM Flag

    Stock that is About to Skyrocket

    Stocks with the technology to deliver any video format, over any network, to any IP connected device are about to skyrocket. Harmonic (HLIT) closed Tuesday a new 52-week high of $6.02 and Tuesday evening reported a non-GAAP EPS loss of ($0.02) down $0.05 from a non-GAAP EPS profit of $0.03 last year. HLIT's trailing 12 month non-GAAP EPS declined from $0.25 to $0.20 and the stock afterhours was trading for $5.89, which equals a P/E of 29.45.

    While HLIT's non-GAAP EPS fell $0.05 year-over-year, their competitor Concurrent (CCUR) reports on April 23rd and CCUR is expected to report GAAP EPS of $0.09 and non-GAAP EPS of $0.13 vs. GAAP EPS of $0.04 and non-GAAP EPS of $0.08 last year. CCUR's trailing non-GAAP EPS will likely increase by $0.05 next week from $0.35 up to $0.40! This means CCUR will have double the trailing EPS of HLIT and CCUR closed Tuesday at only $6.77! With HLIT trading at $5.89 afterhours, CCUR could be ready to make a move to double HLIT's price or $11.78!

    CCUR has just 8.72mm o/s, a market cap of $59.03mm, $24.6mm in cash, no debt, and an extremely low enterprise value of $34.43mm or only 0.55X its trailing revenue of $62.59mm. CCUR has large gross margins of 58.81%, which are 30.69% higher than HLIT's gross margins of 45%! HLIT is trading with an enterprise value/revenue ratio of 0.93. Clearly, CCUR deserves a multiple 30.69% higher than HLIT. This would give CCUR an enterprise value/revenue ratio of 1.22 and value CCUR at a share price of $11.58!

    HLIT recently sold their very low margin cable access business for $46mm, which was breaking even with $52.9mm in revenues. HLIT's cable access business sold for 0.87X revenues when it only had low gross margins of 30%! CCUR's gross margins are nearly double and CCUR is about to report their 5th straight quarter of profitability! There is no way on earth that CCUR should have an enterprise value/revenue ratio of less than 1, which means CCUR should be trading at a minimum share price of $10!

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