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LinkedIn Corporation Message Board

  • bbajf591 bbajf591 Jul 19, 2013 3:08 PM Flag

    Stunning, EPS up 450%, Dividend Doubles to 6.2% Yield!

    Major consolidation is hitting the cable TV industry as operators use M&A activity to gain leverage for future renegotiations of content rights. Besides Cable TV operators being buyout candidates, Cable TV technology vendors will likely be the hottest takeover targets of the summer, and could receive the biggest premium valuations!

    The technology that revolutionized cable TV this past decade was video on demand (VOD). An analyst at Brean Capital issued a note in December regarding VOD tech vendor Seachange (SEAC), "because of SEAC's leading position in key areas of MSO investment, it is not likely to remain an independent company in an industry consolidation scenario."

    The industry consolidation scenario is here! SEAC rose above its previous 52-week high of $12.10 on Monday and hit a new 52-week high on Wednesday of $12.72. SEAC is now $12.58 and trading with a market cap of $412mm, with $114.23mm in cash, and an enterprise value of $297.77 million or 1.91X revenues of $156.11mm.

    The last consolidation wave was in 2006, and analysts back then proclaimed SEAC's #1 rival Concurrent (CCUR) as a takeover target. CCUR at $7.80 has an enterprise value/revenue ratio of only 0.73 and needs to rise to $16.35 to trade at SEAC's multiple of 1.91! CCUR's gross margins of 58.2% exceed SEAC's margins of 51.6%. CCUR has grown its operating margin from 1.3% in 4Q2012, to 2.7% in 1Q2013, to 5.3% in 2Q2013, and to 7.3% in 3Q2013. CCUR's 3Q GAAP EPS of $0.11 was up 175% YOY! If CCUR earns the same in the 4Q, CCUR will report 4Q EPS growth of 450% YOY!

    CCUR is about to rise by a much larger percentage than SEAC! CCUR recently overtook SEAC for the #1 VOD market share. CCUR also has the #1 largest market shares of start-over/look-back and Big Data Analytics. Plus, CCUR is rapidly growing a major share of the multi-screen CDN market! CCUR recently finalized HUGE new CDN deals with Time Warner Cable and Virgin Media!

131.36+2.11(+1.63%)May 27 4:02 PMEDT