Big Data is by far the HOTTEST space in the market today with Tableau Software (DATA) last month having its IPO and raising $254.2mm at $31. DATA closed its first day of trading up 63.7% to $50.75 and is now $54.42 up 75.5% from its IPO price. DATA has a market cap of $3.13 billion with revenues of $143mm!
There is a HUGE Big Data Analytics play that is already public but nobody knows about it yet - and it could rapidly double or triple as word begins to spread! The company is Concurrent (CCUR) and it's currently $7.50 with an enterprise value of $43.29mm or 0.68X sales of $63.23mm vs. DATA trading with a price/sales ratio of 22! CCUR only needs a business valuation of 2X sales for it to more than double to $17, and a business valuation of 3X sales for it to more than triple to $24.22!
CCUR's enterprise value of $43.29 million is just 6X operating cash flow of $7.13 million vs. DATA trading for 224X operating cash flow! If CCUR rises to $17, its business will be valued at 17.73X cash flow, which is a very healthy and easily obtainable ratio! CCUR's revenues, gross profits, operating income, and EPS - has risen quarter-after-quarter for 12 months straight!
CCUR's 3Q EPS was up 175% yoy and their fiscal 4Q ends this month with results due this summer. CCUR's fiscal 4Q/year-end 2013 results could be very strong due to the brand new signing in March of a contract with Virgin Media - the leading UK cable TV operator. Virgin just merged with Liberty Global to form the world's #1 largest cable TV operator - surpassing Comcast!
FastCompany just published an article "How Big Data Keeps Cable TV Watchers Hooked" about how pay- TV operators are using Big Data to launch ad campaigns that follow users from TV to the web, while stopping users from migrating to Netflix. It talks a lot about Time Warner Cable (TWC) and how they are using Big Data to determine the course of both their marketing efforts and their network infrastructure. TWC is using CCUR's Big Data solutions!