A stock that could rise from below $7 to nearly $12 within 2 weeks!
Concurrent (CCUR) could lead the biggest boom in the market this year of companies with the technology to deliver any video format, over any network, to any IP connected device. Their rival Harmonic (HLIT) rose yesterday to a 52-week high of $6.02 and yesterday night reported a non-GAAP EPS loss of ($0.02) down $0.05 from a non-GAAP EPS profit of $0.03 a year ago. HLIT's trailing 12 month non-GAAP EPS declined from $0.25 to $0.20 and the stock finished afterhours trading at $5.89, with a P/E of 29.45.
HLIT's non-GAAP EPS declined $0.05 year-over-year, but CCUR's EPS will likely gain $0.05 year-over-year! CCUR reports on April 23 and they will likely report GAAP EPS of $0.09 and non-GAAP EPS of $0.13 vs. GAAP EPS of $0.04 and non-GAAP EPS of $0.08 a year earlier. CCUR's trailing non-GAAP EPS will most likely rise by $0.05 from $0.35 up to $0.40! CCUR could have double the trailing EPS of HLIT, yet CCUR closed yesterday at only $6.77, just barely about HLIT's afterhours price of $5.89, CCUR could be ready to skyrocket to double HLIT's price per share of $5.89, which would be $11.78!
CCUR only has 8.72mm o/s, a market cap of $59.03mm, $24.6mm in cash and no debt, and an enterprise value of $34.43mm or 0.55X trailing revenue of $62.59mm. CCUR has very big gross margins of 58.81%, which are 30.69% above HLIT's gross margins of 45%. HLIT has an enterprise value/revenue ratio of 0.93 and CCUR clearly should be trading at a multiple that is 30.69% higher, which would value CCUR at an enterprise value/revenue ratio of 1.22 or $11.58 per share!
HLIT sold their low margin cable access business last quarter for $46mm in cash. It was breaking even with $52.9mm in revenue, yet sold for 0.87X revenue when it only had extremely low gross margins of 30%! CCUR's gross margins are nearly double at 58.81% and CCUR is about to report their 5th straight quarter of profits!