Very Low Float and Biggest EPS Growth in Market, About to Rally Big Today!
Concurrent (CCUR): very low float with fastest growing EPS quarter-to-quarter. It has the largest video on demand (VOD) market share with 212 deployments across 4 continents and reaches 50mm global VOD households. CCUR dipped yesterday on low volume after gaining 9 out of 10 days and is down slightly this morning, but will bounce big later today and explode to new highs in days ahead.
Only 9.2mm o/s with $24.6mm in cash, no debt, and an enterprise value at $7.50 of only $44.4mm or just 0.71x its trailing revenues or 0.67x its 2Q 2013 revenues annualized. Gross margins of 58.81% exceed the #2 VOD operator Seachange (SEAC)'s margins of 50.18%. SEAC has enterprise value/revenue ratio of 1.85, which values CCUR at $15.26. CCUR's 2Q 2013 EPS was up 100% from its 1Q 2013 EPS and up 300% from its 4Q 2012 EPS. CCUR latest annualized non-GAAP EPS is now $0.50 and SEAC has P/E of 30 that would make CCUR $15!
Over the past 6 weeks CCUR has announced two new clients that are among their 5 largest in history. CCUR signed a HUGE multi-screen video delivery deal to power Virgin Media's Virgin TV Anywhere tablet/smartphone video service as well as a new VOD client that is an unnamed Top 5 North American MSO. CCUR already works with Time Warner Cable and CCUR's technology wouldn't work for DirecTV or Dish Network, so the new unnamed client must be either Comcast, the #1 largest U.S. cable TV company or Verizon Fios, the #1 largest U.S. telco TV company. CCUR's two huge new clients could potentially add a combined $24mm in revs, increasing CCUR's annualized revs from $66.4mm today to $90.4mm, an increase of 36.1%. Most of CCUR's operating expenses are fixed and if they only increase by 10.83% or 30% of potential 36.1% revenue growth, CCUR's annualized non-GAAP EPS would grow from $0.50 today to $1.30 moving forward and a P/E of 20 to 30 would value CCUR between $26 and $39 per share!