CCUR is about to bounce big from its $8 support level where it closed yesterday and could reach double digits in the upcoming days. CCUR's fiscal 2013 4Q/year-end results to be released later this month will show an unbelievable financial turnaround for the company, with CCUR swinging from a GAAP EPS loss of ($0.33) in fiscal 2012 to an estimated GAAP EPS profit of $0.31 and non-GAAP EPS profit of $0.50 in fiscal 2013 ended June 30th. CCUR at $8 has a market cap of only $70mm with $22.37mm in cash, no debt, and an enterprise value of only $47.66mm or just 0.75X trailing revenues of $63.23mm and 8.51X trailing free cash flow of $5.6mm.
When CCUR reports its 4Q results in a few weeks, CCUR will likely finish fiscal 2013 with approximately $28.71 million in cash and $7 million in trailing free cash flow. Based on these estimates, just for CCUR to maintain its current artificially low enterprise value/free cash flow ratio of 8.51, CCUR will need to rise to $10.08 per share. However, CCUR's two main rivals SEAC and HLIT are currently trading with an average enterprise value/revenue ratio of 1.50 and average enterprise value/free cash flow ratio 16.50.
Based on CCUR's current trailing fundamentals, an enterprise value/revenue ratio of 1.50 would value CCUR at $13.39 per share and an enterprise value/free cash flow ratio of 16.50 would value CCUR at $13.11 per share. Based on CCUR's estimated fiscal 2013 year-end fundamentals to be released later this month, an enterprise value/revenue ratio of 1.50 would value CCUR at $14.42 per share and an enterprise value/free cash flow ratio of 16.50 would value CCUR at $16.47 per share.
CCUR has practically no downside risk at $8. CCUR recently raised its dividend by 100%, which bodes well for CCUR's 4Q results! CCUR now pays a $0.48 per share annual cash dividend for a HUGE dividend yield at $8 per share of 6%! CCUR's MediaHawk has the #1 video on demand (VOD) market share in the pay-TV industry, reaching 50 million households!