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Baidu, Inc. Message Board

  • bbajf591 bbajf591 Jul 17, 2013 1:19 PM Flag

    Potential to be #1 Takeover Target as Industry Consolidates

    We have been experiencing the start of a new huge wave of cable TV industry consolidation. In 2006, during the industry's last consolidation wave - the cable TV operators initially made the largest gains, but the focus quickly shifted to cable TV technology vendors. Seachange (SEAC) was the subject of a Brean Capital research note issued in December that read, "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 now here! SEAC has been soaring in recent days, rising past its previous 52-week high of $12.10 and setting a new 52-week high yesterday of $12.50 where it has an enterprise value/revenue ratio of 1.89. In 2006, many articles were published about both SEAC and its close rival CCUR being potential takeover targets. CCUR hasn't rallied to new highs yet like SEAC, but could do so in the days ahead! CCUR recently surpassed SEAC to capture the #1 largest video on demand (VOD) technology market share, and CCUR now leads in other key areas of MSO investment like start-over/look-back, Big Data Analytics, and CDN multi-screen solutions.

    CCUR is an undiscovered gem that in the event of a buyout could fetch a much larger premium than SEAC! , CCUR meets all of the same criteria that Brean mentions for SEAC being a takeover target. CCUR is currently trading with an extremely undervalued enterprise value/revenue ratio of only 0.71. CCUR could rapidly rise to SEAC's enterprise value/revenue ratio of 1.89, which would value CCUR at $16.21. CCUR could quiclly rise to above SEAC's share price in the short-term. CCUR's 10-K filing next month will likely show record profits for CCUR and solid revenue growth! CCUR's fiscal 2013 non-GAAP EPS could potentially reach $0.50 and exceed SEAC's current non-GAAP EPS of $0.44. CCUR recently raised its dividend by 100% to an industry leading yield of 6.2%, which is an extremely bullish sign!

 
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