Low Floater to Rally into Close, then Gap Up Big and Explode Tomorrow!
Concurrent (CCUR) is breaking out and ready to make a rally from $7 to $10+ in the days ahead! At $7 per share, CCUR's enterprise value is only $36.27mm and after subtracting $15mm - the acquisition price CCUR paid for their Media Data Intelligence business, CCUR only has $21.27mm in remaining value for their real-time and video businesses, which is only 1/3 of their latest annualized revenue of $61.4mm! CCUR is very profitable with non-GAAP EPS last year of $0.35 and is on track to earn minimum EPS of $0.50 this year!
CCUR's real-time ultra high performance business alone has $27.6mm in annualized revenue and has been around for over 4 decades with countless multi-billion dollar clients like GE, Lockheed Martin, Boeing, Ferrari, and even Rolls-Royce! It is undoubtedly worth at least $25mm alone, leaving absolutely no value for CCUR's booming video delivery solutions business!
ERIC announced yesterday that they are paying just under $200mm to acquire MSFT's Mediaroom multi-screen technology, which has a reach of 11 million households and will give ERIC an instant 25% multi-screen market share! CCUR holds a 30% share of the video-on-demand (VOD) market and just signed their first two huge multi-screen clients, the #1 cable TV operators in both the UK and Japan! CCUR already has a multi-screen reach of 6.3mm households or 57% of Mediaroom's 11mm household reach. Therefore, if Mediaroom is worth almost $200mm, CCUR's MediaHawk video delivery solutions are at least worth $100mm. CCUR needs to rise by 164% to $18.45 for its video business to receive $100mm in value! Look for CCUR to first break $9 and possibly $10 tomorrow and then immediately explode well into double digits!